Umicore Sa · EURONEXT:UMI
Umicore Sa — H1 2009 Earnings Presentation
27 slides from Umicore Sa's earnings presentation, Aug 7, 2009
Slide 1: Half year results 2009
Half year results 2009 7 August 2009
Slide 2: Key figures
Key figures • P&L impacted by economic downturn • Revenues down 23% to € 860m • Recurring EBIT € 49.5m (-77%) • ROCE of 5.4% • Basic EPS at € 0.19 • Strong cashflows and balance sheet • Net cashflow before financing of € 181m • Net debt reduced by € 90m to € 239m 2
Slide 3: Group outlook
Group outlook • Visibility in many end markets remains limited • Some improvement in demand in certain sectors, starting from a low base • Conditions in Precious Metals Services to weaken somewhat in H2 • Usual seasonal effects anticipated in H2 • Effect of cost reduction measures starting to be vis
Slide 4: H1 overview
H1 overview • Challenging business environment • Slight overall improvement in Q2 • Dealing with reduced demand in an effective and responsible way • Strong cashflows further strengthen the financial position while supporting strategy • Continuing to invest for longer-term growth, through capex and
Slide 5: Challenging business environment
Challenging business environment • Low end-user demand exacerbated by destocking in most industries globally • Global car production down 30% in H1; North-America, Japan and Europe most affected; Plant closures at several OEMs and destocking on-going • Sales of PCs were down some 14% in H1, while mo
Slide 6: Decrease in revenues affects current profitability
Decrease in revenues affects current profitability Revenues (excluding metal) Recurring EBIT 19.7% (in million €) (in million €) 19.2% 2500 500 17.9% 2100 1910 15.3% 2000 985 400 359 355 13.6% 1693 1725 1685 945 329 160 140 810 864 841 1358 280 159 1500 300 126 233 829 8.3% 7.4% 1115 111 1000 200 21
Slide 7: Advanced Materials
Advanced Materials Key figures H1 H1 • Business review (in million €) 2008 2009 • Small positive EBIT generated, despite 25% decrease in revenues Revenues 205.2 153.9 -25.0% • Robust performance in Electro-Optic EBITDA 52.5 10.0 -81.0% Materials REBIT 37.8 0.5 -98.6% • Rechargeable batteries, Tool M
Slide 8: Precious Metals Products & Catalysts
Precious Metals Products & Catalysts Key figures H1 H1 • Business review (in million €) 2008 2009 • Negative performance caused by low demand in all end markets Revenues 551.5 390.9 -29.1% • Sales in Automotive Catalysts down in EBITDA 99.7 9.8 -90.1% proportion to global auto production REBIT 82.9
Slide 9: Precious Metals Services
Precious Metals Services Key figures H1 H1 • Business review (in million €) 2008 2009 • Continued strong returns (from Precious Metals Refining) Revenues 207.4 182.7 -11.9% • Contribution from Precious Metals EBITDA 106.0 77.0 -27.4% Management reduced in line with more REBIT 86.0 60.9 -29.2% normal
Slide 10: Zinc Specialties
Zinc Specialties Key figures H1 H1 • Business review (in million €) 2008 2009 • A resilient performance given developments in the construction sector Revenues 151.0 132.6 -12.2% • Building Products benefits from EBITDA 39.0 30.7 -21.2% exposure to renovation and non- REBIT 29.9 19.7 -34.2% residenti
Slide 11: Dealing with reduced demand
Dealing with reduced demand • Umicore continues to adapt its production profile to the current demand situation • Permanent workforce reduction in most affected activities • Reduction by more than 500 in fully consolidated companies since year start, primarily in PMP&C • Reduction by more than 1000
Slide 12: Non-recurring items
Non-recurring items Non-recurring items H1 (in million €) 2009 • Restructuring measures taken and Restructurings (18.5) provisioned represent a cost of €18m Inventory impairment reversals 11.7 Other 0.8 Non-recurring EBIT (6.0) • Impairment reversals on permanently Non-recurring tax result 0.7 tied
Slide 13: Strong cashflows
Strong cashflows Net financial debt evolution -329 -239 (in million €) 0 +11 -103 +153 Other -100 (taxes, Net debt acquisitions, -17 30/06 Net debt disposals) -74 2009 31/12 Capex 2008 +120 Financial -200 Net cashflow charges Working before financing capital +181 Dividends changes Net cashflow (incl
Slide 14: Strong balance sheet
Strong balance sheet Net financial debt Gearing ratio (in million €) 1,000 50% 44% 800 773 40% 743 34% 33% 610 577 600 620 30% 25% 510 20% 400 438 20% 329 15% 254 239 10% 10% 200 168 10% 118 0 0% 2002 2003 2004 2005 2006 2007 2008 H1 2002 2003 2004 2005 2006 2007 2008 H1 2009 2009 Securitisation Net
Slide 15: Gross debt well spread
Gross debt well spread Gross debt Other bank facilities 12% Bonds (maturity 2012) • Net interest charges reduced by 41% 29% Commercial paper to € 8m, in line with lower debt level 15% Long-term • Gross debt well spread with 73% loan (maturity longer-term (2011 and beyond) 2013) 4% Revolving credit f
Slide 16: Focus on growth investments
Focus on growth investments Capex 250 (in million €) • Rechargeable battery materials plant 216 expansion in Korea and China 125 commissioned 200 • Expansion of automotive catalysts test 151 153 150 142 146 145 centre in Germany 74 84 94 91 78 108 • Combined heat power generation 100 58 103 facility
Slide 17: R&D efforts maintained
R&D efforts maintained R&D 7.1% 6.9% (in million €) 200 • R&D / revenues at some 7% 5.7% 5.8% 5.8% 165 5.4% 93 150 125 • More generic research in Group R&D 104 112 110 62 increased 100 3.2% 53 2.5% • Some 80% of expenditure focused on 72 48 63 68 Clean Technologies 50 57 31 • R&D efforts planned to
Slide 18: Conclusions
Conclusions • Challenging business environment affects current profitability • Umicore is dealing with reduced demand in an effective way • Positive cashflows and strong balance sheet • Continuing to invest in longer-term growth in promising areas
Slide 19: 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
Slide 20: Annexes
umicore moterials-fr a bette life
Slide 21: EPS
EPS EPS (in €) 1.93 2.00 1.80 1.73 0.74 0.84 0.78 1.50 1.41 0.57 1.21 0.59 1.17 1.00 0.80 0.95 0.95 0.61 0.48 0.84 0.50 0.31 0.62 0.33 0.28 0.18 0.00 2002 2003 2004 2005 2006 2007 2008 2009 H1 H2 Restated for discontinued operations in 2004, 2006 and 2008 21
Slide 22: Recurring and total P&L
Recurring and total P&L Profit & Loss statement H1 H1 (in million €) 2008 2009 Turnover 4,928.0 3,384.8 -31.3% Revenues 1,115.1 860.2 -22.9% Recurring operating profit 209.4 66.6 -68.2% Recurring contribution from associates 5.4 (17.1) -419.2% Recurring EBIT 214.8 49.5 -76.9% Net recurring financial
Slide 23: Income statement
Income statement Consolidated income statement H1 H1 (in million €) 2008 2009 Turnover 4,928.0 3,384.8 -31.3% Operating income 4,978.4 3,405.5 Operating expenses (4,769.7) (3,345.3) Income (loss) from other financial assets 3.7 0.2 Result from operating activities 212.4 60.4 -71.5% Net financial exp
Slide 24: Balance sheet
Balance sheet Consolidated balance sheet 31/12 30/06 (in million €) 2008 2009 Non-current assets 1,130.4 1,189.9 Current assets 1,894.5 1,735.9 Total assets 3,024.9 2,925.7 -3.3% Group shareholders' equity 1,290.7 1,260.4 Minority interest 41.7 47.6 Non-current liabilities 739.3 708.0 Current liabil
Slide 25: Cashflow statement
Cashflow statement Consolidated cashflow statement H1 H1 (in million €) 2008 2009 Cashflow from operations 282.9 119.5 Tax paid (41.8) 1.9 Change in working capital requirements (224.0) 153.4 Net cashflow from operations 17.1 274.9 +1509.1% Capex (90.7) (102.9) Acquisitions (2.6) (3.1) Disposals 34.
Slide 26: Stock performance
Stock performance umicore shareprice vs. indices umicore umicore (in €) BEL20 DJ-SpCh 40 31/12/2000 +14.5% +3.4% 35 31/12/2001 +20.3% +14.0% 30 31/12/2002 +27.7% +12.6% 25 31/12/2003 +22.1% +29.2% 31/12/2004 -4.8% +10.3% 20 31/12/2005 +37.5% +26.4% 15 31/12/2006 +4.7% +18.5% 10 31/12/2007 +40.1% +7.
Slide 27: Umicore
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