Umicore Sa · EURONEXT:UMI
Umicore Sa — FY2010 Earnings Presentation
43 slides from Umicore Sa's earnings presentation, Feb 10, 2011
Slide 1: Full year results 2010
Full year results 2010 10 February 2011
Slide 2: Highlights
Highlights • Results rebounded to pre-downturn levels driven by recovering demand • EPS at record level • Strong balance sheet • Full year dividend proposed of € 0.80 • Vision 2015 strategy implemented and on-track 2
Slide 3: Recovering economy drives revenue growth
Recovering economy drives revenue growth… Revenues (in million €) 2500 • Revenues up 16% at € 2 billion 2100 2000 1910 2000 1693 1725 1685 985 1723 1013 • Recovery seen in all business segments 945 864 841 863 • Global car production up 25% 1500 1358 810 • High levels of supply for recycling in all
Slide 4: …and profitability
…and profitability Recurring EBIT (in million €) 600 19.6% 18.9% 17.8% 17.5% 500 15.3% • Recurring EBIT close to pre-downturn levels 400 359 355 driven primarily by growing revenues 329 343 14.0% 160 140 300 280 169 156 7.7% 233 8.1% 7.4% 126 200 111 146 199 215 146 186 • ROCE of 17.5% reflects reco
Slide 5: Environmental and safety highlights
Environmental and safety highlights Accident frequency rate 14 12 • Safety performance slightly below that of 2009 10 8 6 • Group safety initiative strengthened further in 4 the quest for a zero accident work environment 2 0 • Construction of soil remediation plant in Viviez 2002 2003 2004 2005 2006
Slide 6: People
People Total headcount 20,000 • Recruitment stepped up to prepare for future 15,413 18,000 growth 14,945 14,540 14,386 14,364 14,142 14,026 13,728 16,000 5,334 • Number of employees increased by some 250 in 5,938 14,000 11,470 3,070 10,582 4,828 5,018 4,314 4,131 4,415 12,000 fully consolidated comp
Slide 7: Vision 2015
© umicore Vision 2015
Slide 8: Vision 2015 – an overview
Vision 2015 – an overview • New Vision 2015 strategy introduced in 2010 • Key growth areas identified, responding to global megatrends: • Expand Automotive Catalysts into new segments • Materials for (H)EV batteries • Expand Recycling especially through UHT technology • Grow Umicore’s presence in ma
Slide 9: Vision 2015: Preparing for the (H)EV market
Vision 2015 Preparing for the (H)EV market • Intensive qualification on-going with battery manufacturers and OEMs • Capacity & capability expansion well on track • Expansion in Cheonan, South Korea, to be commissioned mid 2011 • New plant and applied technology centre in Kobe Japan, to be commission
Slide 10: Vision 2015: Preparing for the HDD market
Vision 2015 Preparing for the HDD market • Awards for future HDD business secured in 2010; further positioning on-going • Expansion of production capacity & facilities for testing and development • New dedicated HDD line planned in Florange, France, to be commissioned mid 2012 • Technology developme
Slide 11: Vision 2015: Battery recycling with UHT technology
Vision 2015 Battery recycling with UHT technology • Market developments • Battery Directive implementation approaching (2012-2016) • National and regional collection networks becoming more established • Successful positioning of Umicore • Shipment levels of spent batteries (from Europe) and battery
Slide 12: Vision 2015: Other developments
Vision 2015 Other developments • Substrates investment in US completed in 2010 • Investment wave of some € 30 million envisaged for Thin Film Products – particularly for PV-related businesses • Targeted investments in Performance Materials will mean higher capex for this segment in 2011 • R&D is exp
Slide 13: Continued investment in growth projects
Continued investment in growth projects R&D 200 167 136 135 • R&D spend of € 135 million 150 126 132 95 111 63 67 67 • Represents 6% of revenues 100 54 31 48 44 • R&D efforts expected to remain at high levels in 50 66 72 73 68 66 2011 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 (in € million) 250
Slide 14: Business review
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Slide 15: New organisational structure
New organisational structure Energy Zinc Performance Materials Chemicals Materials Thin Electro- Building Technical Electro- Film Optic Products Materials plating Products Materials Cobalt & Platinum Specialty Engineered Materials Materials Precious Precious Business units Precious Metals Metals Met
Slide 16: Catalysis
Catalysis Revenues 800 712 699 586 • Revenues up 19% (22.4% incl. associates) 600 314 359 311 and strong EBIT recovery 400 399 200 275 339 • Automotive Catalysts benefiting from volume increase and full effect of cost savings (in € 0 million) 2008 2009 2010 • Global automotive production up 25% 78 8
Slide 17: Catalysis: Automotive Catalysts key figures
Catalysis Automotive Catalysts Key figures (in million €) 2009 2010 Revenues 585.8 698.7 +19.3% REBITDA 39.5 104.6 +164.8% REBIT 16.7 77.7 +365.3% Catalyst Technologies of which associates (7.1) 4.8 -167.6% EBIT 13.2 72.4 +448.5% R&D 80.8 79.9 -1.1% Capex 46.0 45.7 -0.7% REBIT margin 4.1% 10.4% +6.3
Slide 18: Energy Materials
Energy Materials Revenues • Revenues up 14% and recurring EBIT recovering 395 348 400 190 305 • Increased activity levels in all end-markets of 300 151 174 Cobalt & Specialty Materials 200 205 • Ceramics & Chemicals and Tool Materials 154 173 businesses performed very well 100 • Rechargeable battery
Slide 19: Energy Materials: Cobalt & Specialty Materials key figures
Energy Materials Cobalt & Specialty Materials Key figures (in million €) 2009 2010 Revenues 305.1 347.6 +13.9% REBITDA 44.7 67.5 +51.0% Electro-optic Materials REBIT 23.9 43.9 +83.7% of which associates 7.4 5.7 -23.0% EBIT 31.7 43.1 +36.0% R&D 12.2 13.1 +7.4% Capex 51.0 38.3 -24.9% REBIT margin 5.4%
Slide 20: Performance Materials
Performance Materials Revenues • Revenues up 10% and recurring EBIT doubled 483 446 vs 2009 500 404 226 400 196 227 • Turn-around in Technical Materials and 300 Element Six Abrasives 200 257 208 219 100 • Continued strong performance in Electroplating (in € 0 due to electronics demand million) 2008
Slide 21: Performance Materials key figures
Performance Materials Building Products Electroplating Key figures (in million €) 2009 2010 Revenues 404.2 446.3 +10.4% REBITDA 61.1 101.3 +65.8% Pt Engineered Materials Technical Materials REBIT 36.6 75.2 +105.5% of which associates 0.8 23.2 +2800.0% EBIT 38.5 78.6 +104.2% R&D 11.7 16.0 +36.8% Cape
Slide 22: Recycling
Recycling Revenues 600 508 506 500 427 • Revenues up 19%, reflecting a buoyant 255 252 400 204 environment for all supply streams 300 200 253 222 254 • Recurring EBIT up 68% 100 (in € 0 • Favourable mix development with higher portion million) 2008 2009 2010 of complex materials and end-of-life mate
Slide 23: Recycling: Precious Metals Refining key figures
Recycling Precious Metals Refining Key figures (in million €) 2009 2010 Revenues 426.7 506.1 +18.6% REBITDA 158.2 236.7 +49.6% Jewellery & Industrial Metals REBIT 117.7 195.5 +66.1% EBIT 109.8 182.2 +65.9% R&D 8.9 6.0 -32.6% Capex 54.9 50.3 -8.4% REBIT margin 27.6% 38.6% +11.0% ROCE 40.8% 64.8% +24.
Slide 24: Financials
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Slide 25: Net recurring profit grew strongly
Net recurring profit grew strongly Recurring net consolidated profit, Group share (in million €) 400 +277 -107 300 +2 263 -10 +36 -31 +15 Operating Minority D&A result 200 expenses Net result (+8%) Net taxes Net financial (-26%) (+7%) from (+128%) charges 31/12 associates (-45%) 2010 (+594%) 82 (+22
Slide 26: EPS at record level, dividend increase proposed
EPS at record level Dividend increase proposed Recurring EPS Dividend (proposed) (in € / share) (in € / share) 3.00 1.00 2.50 2.33 0.80 1.09 0.75 1.93 0.65 0.65 0.65 2.00 1.80 1.73 0.74 1.41 0.78 0.83 1.50 1.21 0.50 0.42 0.57 0.37 0.59 1.24 0.32 0.33 1.00 0.80 1.17 0.28 0.73 0.60 0.95 0.96 0.33 0.25
Slide 27: Net debt increased with working capital needs
Net debt increased with working capital needs Net financial debt evolution (in million €) 300 +398 -247 200 100 -177 -360 -172 0 Net debt 31/12 Working -100 2009 capital -47 Net debt changes -21 31/12 -200 -110 Operating 2010 Capex cashflow -300 Taxes Net +15 financial -400 charges Dividends Other p
Slide 28: Strong capital structure maintained with gearing of 18.6%
Strong capital structure maintained with gearing (D/D+E) of 18.6% Net financial debt Gross financial debt (in million €) (excluding metal) 1,000 Bonds 800 767 725 (maturity Other 2012) 616 639 bank 31% 600 643 facitlities 585 37% Floating Fixed 515 rate rate 400 340 360 333 Fixed rate 178 177 loan 2
Slide 29: Non-recurring elements
Non-recurring elements Non-recurring items (in million €) 2010 • Net non-recurring result of € 7.7 million Impairments (4.3) Restructuring costs & provisions (4.7) • Impairment taken following suspension Environmental costs & provisions (3.8) of HyCore activities (non-cash) Other 3.7 • Restructuring
Slide 30: Wrap-up & outlook
umicore Wrap-up & outlook
Slide 31: Wrap-up
Wrap-up • Results rebounded to pre-downturn levels driven by recovering demand • Strong revenue and EBIT growth across segments • Strong financial position maintained • Continued investment in projects related to Vision 2015 • Umicore is positioning itself successfully with regard to future growth
Slide 32: Outlook
Outlook • Umicore anticipates further revenue and earnings growth in 2011 • Catalysis: passenger car production expected to grow further in 2011, although not at the same rate as 2010 • Energy Materials: further growth expected partly as a result of new investments coming on stream • Performance Mat
Slide 33: Annexes
© umicore Annexes
Slide 34: Segment split
Segment split Revenues EBIT Capital employed (excluding metal) (recurring) (average) CI CI CA CI 4% 11% 18% RE 4% 15% CA RE CA 24% 34% 32% EM 10% RE PM 44% 17% PM PM 30% EM EM 21% 17% 19% J AM Advanced Materials J PMPC Precious Metals Products & Catalysts J PMS Precious Metals Services Corporate not
Slide 35: Segment split
Segment split Capital expenditure R&D expenditure Workforce (end of period) CI CI CA CI 13% 8% CA 8% 15% 27% RE RE 15% 4% RE 29% EM PM 21% CA 12% 59% EM 10% EM PM PM 22% 14% 43% J AM Advanced Materials J PMPC Precious Metals Products & Catalysts J PMS Precious Metals Services Corporate not included
Slide 36: P&L Profit & Loss statement
P&L Profit & Loss statement (in million €) 2009 2010 Turnover 6,937.4 9,691.1 +39.7% Revenues 1,723.2 1,999.7 +16.0% Recurring operating profit 146.4 342.5 +133.9% Recurring contribution from associates - - #VALUE! Recurring EBIT 146.4 342.5 +133.9% Net recurring financial result (33.7) (18.4) -45.4
Slide 37: Income statement
Income statement Consolidated income statement (in million €) 2009 2010 Turnover 6,937.4 9,691.1 Operating income 7,010.7 9,746.2 Operating expenses (6,861.0) (9,444.2) Income (loss) from other financial assets 0.5 1.0 Result from operating activities 150.1 303.0 Net financial expenses (34.9) (27.9)
Slide 38: Balance sheet
Balance sheet Consolidated balance sheet 31/12 31/12 (in million €) 2009 2010 Non-current assets 1,243.6 1,371.9 Current assets 1,583.1 2,139.7 Total assets 2,826.7 3,511.6 Group shareholders' equity 1,314.2 1,517.0 Minority interest 52.5 61.7 Non-current liabilities 516.1 551.8 Current liabilities
Slide 39: Cashflow statement
Cashflow statement Consolidated cashflow statement (in million €) 2009 2010 Cashflow from operations 253.9 398.4 Tax paid (5.1) (47.3) Change in working capital requirements 201.8 (247.0) Net cashflow from operations 450.7 104.1 Capex (190.5) (172.0) Acquisitions (11.1) (9.0) Disposals 20.8 2.1 Loan
Slide 40: Shareprice performance
Shareprice performance Umicore shareprice Relative Umicore Umicore Umicore (in € / share) Performance year/year vs BEL20 vs DJ-SpCh 45 31/12/1999 +19.3% +25.2% -8.8% 40 31/12/2000 +3.6% +14.5% +3.4% 35 31/12/2001 +10.6% +20.3% +14.0% 30 31/12/2002 -7.1% +27.7% +12.6% 31/12/2003 +35.6% +22.3% +29.5%
Slide 41: Financial calendar
Financial calendar 26/04/2011 AGM / EGM and Q1 2011 trading update 29/04/2011 Share traded ex dividend 04/05/2011 Payment of dividend 04/08/2011 H1 2011 results publication 20/10/2011 Q3 2011 trading update 09/02/2012 2011 results publication 41
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: umicore
© umicore