Umicore Sa · EURONEXT:UMI
Umicore Sa — H1 2020 Earnings Presentation
27 slides from Umicore Sa's earnings presentation, Jul 31, 2020
Slide 1: Umicore H1 2020 performance
Umicore H1 2020 performance 31 July 2020
Slide 2: Overview
Overview COVID-19 outbreak and Umicore’s response H1 2020 business review Outlook H1 2020 financial review Wrap up Q&A Umicore H1 2020 performance 2
Slide 3: COVID-19 outbreak: impact on auto-industry
COVID-19 outbreak: impact on auto-industry H1 2020 YoY evolution of passenger car production across all powertrains (source: IHS & Umicore - 20/07/2020) China Europe North America Global market 2.500.000 2.500.000 2.500.000 9.000.000 -47% -34% -27% 8.000.000 -12% -54% -39% -67% -62% -26% 2.000.000 2
Slide 4: COVID-19 outbreak: impact on EV sales
COVID-19 outbreak: impact on EV sales H1 2020 YoY evolution of BEV and pHEV car sales (source: EV Volumes) China Europe Global market 300.000 300.000 300.000 -31% 250.000 250.000 250.000 -14% 200.000 -54%* 200.000 200.000 -21% -7% -26% 150.000 150.000 150.000 -49% +17% -50% -27% 100.000 100.000 100.
Slide 5: Immediate measures in response to COVID-19
Immediate measures in response to COVID-19 Keeping our people Preserving cash healthy and ensuring Reduce costs (e.g. production capacity safe working conditions adjusted and use of temporary unemployment measures where applicable) Strict hygiene and precautionary measures Optimize working capital D
Slide 6: Longer-term measures in response to COVID-19
Longer-term measures in response to COVID-19 Assessing production Strengthening of funding footprint and asset structure and increasing utilization liquidity Consolidation of North American Additional funding: placement of € 500 m automotive catalyst production convertible bond and € 125 m loan from
Slide 7: H1 2020 business review
_ umicore materials fer a bette, life O business review
Slide 8: Key figures H1 2020
Key figures H1 2020 REVENUES Adjusted EBIT Free Operating Cash Flow € 108 m € 1.6 bn € 243 m Net debt at € 1,349 m -4% YoY Stable YoY Net debt / LTM Adj. EBITDA 1.75x Adjusted NET PROFIT Adjusted EBITDA CAPEX € 152 m (Group share) € 376 m € 148 m +5% YoY Adjusted EPS € 0.62 ROCE 10.9% Interim divide
Slide 9: Catalysis H1 2020 performance
Catalysis H1 2020 performance Revenues -20% and Adj. EBIT -75%; severe impact from COVID-19 and related car OEM production shutdowns REVENUES 800 743 717 600 709 652 633 620 Automotive Catalysts 598 571 565 400 Widespread car OEM production shutdowns and car 200 sales plunging 0 H1 2016 H2 2016 H1 2
Slide 10: E&ST H1 2020 performance
E&ST H1 2020 performance Revenues -8%; Adj. EBIT -47%; severe COVID-19 impact and higher fixed costs REVENUES Rechargeable Battery Materials 700 Overall volumes of cathode materials lower YoY and 600 650 639 618 607 500 557 materially lower than expected due to COVID-19 495 400 398 Higher fixed cost
Slide 11: Recycling H1 2020 performance
Recycling H1 2020 performance Revenues +40%; Adj. EBIT +150%; increased volumes, higher metal prices and favorable supply mix REVENUES 600 450 Precious Metals Recycling 440 300 368 339 327 323 318 313 311 300 Higher processed volumes (vs. extended maintenance 150 in H1 19) 0 H1 2016 H2 2016 H1 2017
Slide 12: Environmental focus on the Hoboken plant
Environmental focus on the Hoboken plant Lead in blood children Fire incidents Multiple years of decreases with 2019 Fire in lead refinery in March 2020 readings historically low, well below 5µg/dl norm Small fire on the roof of a waste water treatment section in July Unexpected increase in July 202
Slide 13: Outlook
:; umicore materials fr a better life Outlook
Slide 14: 2020 outlook
2020 outlook Given the current evolution of the pandemic and the uncertainty it creates in Umicore’s key end-markets, it remains impossible to provide a reliable quantified outlook for 2020. Notwithstanding the very limited market visibility, Umicore continues to expect its full year adjusted EBIT t
Slide 15: Long-term growth drivers remain intact
Long-term growth drivers remain intact COVID-19 stimuli plans aimed at a ‘green recovery’ in China and Europe China: Extension of NEV subsidy plan from 2020 until end 2022 and confirmation of increased mandatory NEV credit targets for 2021-2023 ENERGY & SURFACE TECHNOLOGIES Europe: EU recovery plan
Slide 16: H1 2020 financial review
_ umicore materials fer a bette, life H1 2020 financial review
Slide 17: Recycling results offset impact of automotive industry downturn on Catalysis and E&ST
Recycling results offset impact of automotive industry downturn on Catalysis and E&ST Adj. EBIT & Adj. EBIT margin 15,2% 15,3% 400 12,3% 13,5% 14,3% 16,00% Adjusted EBIT at € 243 million, in line 15,9% 14,00% 15,3% 300 12,00% with H1 19 12,8% 13,0% 10,00% 269 261 Stellar Adjusted EBIT growth in Recy
Slide 18: Pronounced offsetting operating leverage effects
Pronounced offsetting operating leverage effects Negative in Catalysis and E&ST vs positive in Recycling H1 YoY evolution 200% +150% 150% Group +108% Revenues -4% 100% Adj. EBITDA +5% 50% +40% Adj. EBIT +1% 0% -8% -20% -23% -50% -51% -47% -75% -100% Catalysis E&ST Recycling Revenues Adj. EBITDA Adj.
Slide 19: Full P&L
Full P&L Million € H1 2020 H1 2019 Adjusted EBIT 243.0 239.6 Stable Adjusted net Group result (44.5) (39.2) and Adjusted EPS, reflecting - Net finance cost stable operating income - Adjusted Tax (47.5) (46.2) Adjusted net result 151.1 154.1 Higher interest charges on the back of higher financial deb
Slide 20: EBIT adjustments
EBIT adjustments H1 2020 EBIT adjustments of - € 72 Million € million : • Reflects impact of COVID-19 Restructuring-related charges (30.9) • Combination of : Selected non-current asset • impact from restructuring impairments (31.5) measures (€ 31 million); and Other adjustments (9.9) • impairment of
Slide 21: Increase in free operating cash flows
Increase in free operating cash flows million €, continued operations only 600 437 363 330 347 400 249 240 308 200 Cash flow from operations before changes 298 275 0 120 241 in working capital up at € 347 million 93 102 -10 10 -200 -156 -120 -89 -72 Increase in cash working capital of € 72 million -
Slide 22: Net cash flow bridge
Net cash flow bridge million € 275 Free operating cashflow of € 108 million translating in similar decrease in reported net financial debt (€94 million) versus start of the year 167 Includes € 50 million portion of convertible bond accounted for as equity 108 94 28 29 21 50 Combined cash out related
Slide 23: Further strengthening and diversification of funding base
Further strengthening and diversification of funding base 31,1% 35,2% 33,6% 28,6% 23,2% 24,4% 14,3% 13,8% 14,1% Stable net financial debt of € 1,349 m, million € slightly below the level of end 2019 1400 1,40 1,48 1,92 1,75 1443 1,60 1,19 Gearing 1349 1200 0,99 1,10 ratio 0,64 Corresponds to robus
Slide 24: Wrap-up
:; umicore materials fr a better life Wrap-up
Slide 25: Wrap-up
Wrap-up Strong performance in Resilient H1 20 results, in Umicore’s priority remains Recycling offset COVID-19 most challenging context to keep its employees impact in Catalysis and ever faced, highlight merits healthy and ensure safe Energy & Surface of complementarity of working conditions Technol
Slide 26: Q&A
:; umicore materials fr a better life Q&A
Slide 27: Financial calendar
Financial calendar 21 August 2020 Ex-interim dividend trading date 24 August 2020 Record date for the interim dividend 25 August 2020 Payment date for the interim dividend ` Umicore H1 2020 performance 27