Slide 1: Umicore FY 2019 performance
Umicore FY 2019 performance 7 February 2020
Slide 2: Overview
Overview Highlights 2019 2020 outlook 2019 business review 2019 financial review Wrap up Q&A Umicore 2019 performance 2
Slide 3: Highlights 2019
Highlights 2019 Strong performance in challenging environment ENERGY & SURFACE CATALYSIS RECYCLING TECHNOLOGIES Market share gains in gasoline Growth in cathode materials for Favorable supply environment catalyst applications EVs in line with the market Optimized input mix offset Leading light-duty
Slide 4: 2020 outlook
2020 outlook Umicore expects to grow revenues and earnings in 2020* ENERGY & SURFACE CATALYSIS RECYCLING TECHNOLOGIES No signs of imminent recovery in EV demand in China not expected Increased availability of Hoboken automotive market to materially recover in 2020 smelter Higher sales of cathode mat
Slide 5: 2019 business review
_ umicore materials fer a bette, life 9 business review
Slide 6: Catalysis 2019 market context
Catalysis 2019 market context Recession in global car market More stringent emission norms in key regions Global light-duty vehicle production down by Euro 6d TEMP for all new vehicles since 6.3% year on year: September 2019 China - 8.9% Europe - 5.0% Early implementation of China 6a in July 2019 No
Slide 7: Catalysis 2019 performance
Catalysis 2019 performance Revenues +7% and REBIT +10%; outperforming market reflecting market share gains in light-duty gasoline REVENUES 1500 1.360 1.460 1.253 1.094 1.163 Automotive Catalysts 1000 620 652 743 545 565 Market share gains in light-duty gasoline 500 Growing penetration of cGPFs in Ch
Slide 8: Catalysis – major milestones in 2019
Catalysis – major milestones in 2019 Capacity expansions Sustained investments Opening of new plant to support growth of in product and for fuel cell catalysts Automotive Catalysts in process innovation in Korea China, Poland and India Umicore 2019 performance 8
Slide 9: E&ST 2019 market context
E&ST 2019 market context Slowdown in global EV demand and low cobalt price Global EV market up 7.7% in 2019 compared to 62% in 2018, reflecting abrupt decline in EV sales in China in H2 due to subsidy cuts LCO in consumer electronics: supply chain reducing excess inventories ESS in Korea: subdued de
Slide 10: E&ST 2019 performance
E&ST 2019 performance Revenues -5%; REBIT -29% reflecting slowdown in demand and low cobalt price REVENUES 1500 Rechargeable Battery Materials 1.289 1.225 Lower sales for portable electronics and ESS 894 1000 639 Higher sales for EVs, in line with global EV market 618 587 610 495 Recycling and refin
Slide 11: E&ST – major milestones in 2019
E&ST – major milestones in 2019 Capacity expansions • Commissioning greenfield Commissioning of Acquisition of cobalt refinery plant in China new Process and cathode precursor Competence Center activities in Kokkola, Finland • Start of construction greenfield plant in Poland (Olen, Belgium) Support
Slide 12: Recycling 2019 market context
Recycling 2019 market context Supportive metal prices and favorable supply environment Supportive metal price environment Higher prices for certain precious and platinum group metals, particularly in the second half of 2019 Favorable supply environment with increased availability of complex end-of-l
Slide 13: Recycling 2019 performance
Recycling 2019 performance Revenues +9%; REBIT +40% reflecting favorable supply mix, higher metal prices and optimization of input mix REVENUES 1.000 Precious Metals Recycling 800 663 641 650 626 681 600 Higher availability of spent autocats and printed circuit 320 318 311 300 368 boards 400 Higher
Slide 14: Recycling – major milestones in 2019
Recycling – major milestones in 2019 Completion of multi- Investments to sustain Upgrade of key year expansion and improve the equipment during program at Hoboken environmental extended shutdown plant performance of the plant Umicore 2019 performance 15
Slide 15: 2019 financial review
_ umicore materials fer a bette, life 2019 financial review
Slide 16: Key figures 2019
Key figures 2019 REVENUES REBIT Free Operating Cash Flow +3% to € 3.4 bn € 509 m, close to 2018 € -39 m (€ -406 m in FY 18) Strong growth in Catalysis (+7%) record level Net debt € 1,443 m and Recycling (+9%) partly offset Balanced contribution from the Net debt / REBITDA 1.9x by decline in E&ST (-5
Slide 17: Robust performance in challenging market context
Robust performance in challenging market context REBIT & REBIT margin Recurring EBIT at € 509 m, close to 700 15,5% 14,8% record level of 2018 600 13,2% CAGR 12,2% 12,6% Double digit growth in Recycling and 500 514 509 2015-2019 400 299 320 398 252 + 11 % Catalysis offset by decrease in E&ST 269 300
Slide 18: Strong sequential earnings growth in second half
Strong sequential earnings growth in second half REBIT & REBIT margin Strong H2 19 performance after more 300 12,8% 12,8% 13,5% 13,0% 15,2% 15,9% 14,3% 15,3% challenging H1 19 250 11,6% 12,3% 269 Strong sequential and year-on-year growth in H2 261 252 240 200 203 195 150 Mostly driven by Recycling (
Slide 19: Improvement in free operating cash flows
Improvement in free operating cash flows million €, continued operations only 1000 800 627 500 549 Cash flow from operations highest in 0 92 last five years at € 549 m -78 -500 Includes a € 78 m increase in working capital -708 -1000 requirements, mostly driven by impact of FY15 FY16 FY17 FY18 FY19
Slide 20: Net cash flow bridge
Net cash flow bridge million € Free operating cashflow of € - 39 m (€ - 406 m in 2018) € 188 m cash out linked to the Kokkola acquisition Increased dividend payout to Umicore shareholders (€ 186 m vs € 175 m in 2018) Increase in net financial debt of € 582 m, including non-cash increase of € 46 m fr
Slide 21: Maintaining a healthy capital structure
Maintaining a healthy capital structure 35,2% 31,1% 2000 24,4% 2,00 1800 1,92 1,80 15,3% 13,8% 1600 1,60 1,40 1443 Gearing 1400 1,40 ratio 1,19 1200 1,20 1000 840 1,00 861 800 0,80 Net debt 0,64 0,56 / recurring EBITDA 600 0,60 400 321 296 0,40 200 0,20 Consolidated net 0 0,00 financial debt,
Slide 22: Further extension of funding base
Further extension of funding base Issuance of € 390 m US private placement notes, Committed medium & long term complementing existing committed credit facilities: facilities Historically low, fixed interest rates Total of € 1,875 m Maturities of 7, 10 and 12 years 2000 1800 Total of committed medium
Slide 23: Non-recurring items
Non-recurring items FY 2019 Non-recurring EBIT : Million € Restructuring charges and provisions (26) Mostly linked to restructuring charges, optimizing the footprint in E&ST (outside of Other (4) the battery materials activities) Non-recurring EBIT (30) Most significant impact from the discontinuati
Slide 24: Wrap-up
:; umicore materials fr a better life Wrap-up
Slide 25: Wrap-up
Wrap-up Strong 2019 performance, close Consistent execution of long-term to 2018 record levels, despite growth strategy, while adapting to persistently weak market context short-term fluctuating market demand Major steps taken in 2019 to Umicore expects to grow strengthen leadership position in reve
Slide 26: Q&A
:; umicore materials fr a better life Q&A
Slide 27: Financial calendar
Financial calendar 30 April 2020 Ordinary General Meeting of Shareholders 5 May 2020 Ex-dividend date 6 May 2020 Record date for the dividend 7 May 2020 Dividend payment date 31 July 2020 Half Year Results 2020 ` Umicore 2019 performance 28
Slide 28: Forward-looking statements
Forward-looking statements This presentation contains forward- Should one or more of these risks, looking information that involves risks uncertainties or contingencies materialize, and uncertainties, including statements or should any underlying assumptions about Umicore’s plans, objectives, prove