Slide 1: Umicore H1 2019 performance
Umicore H1 2019 performance 31 July 2019
Slide 2: Overview
Overview Highlights H1 2019 2019 outlook H1 2019 business review Financial review Wrap up Q&A Umicore H1 2019 performance 2
Slide 3: Highlights H1 2019
Highlights H1 2019 Robust performance in challenging Committed to long-term strategy in clean market conditions and compared to mobility materials and recycling record levels in 2018 Catalysis: substantially outperforming automotive Important steps taken to expand integrated and market sustainable b
Slide 4: H2 2019 perspectives
H2 2019 perspectives CATALYSIS ENERGY & SURFACE RECYCLING TECHNOLOGIES Strong performance expected Volume growth expected in Continued increase of despite persisting headwinds in cathode materials throughput rate and favorable automotive industry supply environment Full impact of subsidy cuts on EV
Slide 5: 2019 outlook confirmed
2019 outlook confirmed Umicore confirms its outlook of recurring EBIT for the full year 2019 in a range of € 475 million to € 525 million, assuming no material further deterioration of the macroeconomic environment CATALYSIS ENERGY & SURFACE RECYCLING TECHNOLOGIES Recurring Recurring EBIT Recurring
Slide 6: H1 2019 business review
_ umicore materials fer a bette, life H1 2019 iness review
Slide 7: Catalysis H1 2019 market context
Catalysis H1 2019 market context Strong headwinds in the automotive industry Global light-duty vehicle production contracted by 6.7% year on year China down 12.1% Europe down 6.4% North America down 3.6% China, the world’s largest car market, significantly declining since H2 2018 after years of stro
Slide 8: Catalysis H1 2019 performance
Catalysis H1 2019 performance Revenues +1% and stable REBIT; in strong contrast with declining auto market REVENUES 800 700 Automotive Catalysts (~90% Catalysis revenues) 717 709 600 652 633 620 500 598 565 549 545 400 300 Market share gains in light duty gasoline 200 100 Growing penetration of cGPF
Slide 9: Strong growth drivers in Catalysis
Strong growth drivers in Catalysis Tightening emission norms for Umicore best positioned to LDV and HDD, in particular in capture growth in growing China, Europe and India gasoline segment Significant value uplift especially Largest share of cGPF platforms in gasoline catalysts won in China and Euro
Slide 10: E&ST H1 2019 market context
E&ST H1 19 market context Slowing growth pace of demand for cathode materials and lower metal prices Transportation: slowdown in EV demand in China, the world’s largest EV market ESS in Korea: production of new systems halted after safety incidents Subdued demand for high-end portable electronics De
Slide 11: E&ST H1 2019 performance
E&ST H1 19 performance Revenues -7%; REBIT -16% reflecting slowdown in demand and lower metal prices REVENUES 700 Rechargeable Battery Materials 600 650 639 607 500 495 400 Lower NMC for ESS and LCO sales 398 300 321 298 Flat demand for automotive applications 200 289 288 100 0 H1 2015 H2 2015 H1 20
Slide 12: Strong growth drivers for E&ST
Strong growth drivers for E&ST Electrification and technology differentiation Electrification confirmed as the main Technology roadmap offers ample avenue to drastically reduce vehicle room for innovation and emissions in mid & long term differentiation: Product: range, charging times, Strongly supp
Slide 13: Expanding integrated and sustainable battery materials supply chain
Expanding integrated and sustainable battery materials supply chain Agreement to acquire Freeport Partnership with Glencore for Cobalt’s refining and cathode sustainable cobalt supply precursor activities in Finland Long-term supply guarantee for substantial part of our cobalt needs Fully integrated
Slide 14: Recycling H1 2019 market context
Recycling H1 2019 market context Supportive market environment Strong supply mix Increased availability of complex materials, in particular end- of-life materials Stricter enforcement of import ban of e-scrap in China High volumes of more complex spent catalysts Higher prices for certain PGMs Umicor
Slide 15: Recycling H1 2019 performance
Recycling H1 2019 performance Revenues and REBIT -2%(*) due to extended maintenance shutdown REVENUES 600 450 Precious Metals Recycling (~70% Recycling revenues) 300 343 339 327 323 320 318 313 311 300 150 Better throughput rates following latest wave of investments in Hoboken 0 H1 2015 H2 2015 H1 2
Slide 16: Strong drivers for Recycling
Strong drivers for Recycling Increasing resource scarcity Umicore uniquely positioned to and need for closing the loop capture growth in this segment as the world’s largest and most Growing complexity of complex precious metal materials to recycle recycler with world class environmental and quality
Slide 17: Financial review
_ umicore materials fer a bette, life Financial review
Slide 18: Robust performance in a challenging environment
Robust performance in a challenging environment REBIT & REBIT margin 400 13.5% 15.2% 14.3% 16.0% Down compared to a record H1 18 and resilient 12.4% 11.8% 15.9% 14.0% sequential performance 300 12.0% 12.8% 13.0% 10.0% vs H1 18 vs H2 18 261 252 200 240 10.0% 8.0% Revenues -3% +3% 203 195 6.0% 165 155
Slide 19: Stronger free operating cash flows
Stronger free operating cash flows Cashflow generated from operations tripled compared to H1 18 and highest in recent years Stable net working capital in 1H19 versus last year’s strong increase Higher capex (€ 241 m) of which two thirds in E&ST Complemented by increased capitalized development expen
Slide 20: Net cash flow profile
Net cash flow profile ** * Free operating cashflow Tax and net interest cash Higher dividend pay-out to Non-cash increase in net of € 50 m out of € 86 m Umicore shareholders financial debt of € 37 m (- € 104 m in H1 18) (€ 88 m in H1 18) (€ 96m vs € 91m in H1 18) from IFRS 16 adoption * Cashflow gen
Slide 21: Maintaining a strong capital structure
Maintaining a strong capital structure 31% 2000 29% 23% 24% 1.60 1800 1.35 15% 15% 14% 1600 14% 1.40 14% 1.15 Gearing 1400 1.20 ratio 1200 0.87 0.91 1.00 1,059 1000 0.72 861 840 0.80 800 0.59 0.65 0.60 Average net debt 0.55 0.60 556 / recurring EBITDA 600 429 314 321 298 296 0.40 400 200 0.20
Slide 22: Further extended funding base
Further extended 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 Expected drawdown in September 18
Slide 23: Accounting changes and non-recurring items
Accounting changes and non-recurring items Adoption of IFRS 16 lease agreements standard Adoption of IFRIC 23 Interpretation on uncertain tax positions Change in valuation principles of permanently tied-up metal inventories : Existing separate inventory category of metal stock with indefinite use re
Slide 24: Wrap-up
:; umicore materials fr a better life Wrap-up
Slide 25: Wrap-up
Wrap-up Performance in H1 and outlook Drivers behind growth strategy in for the full year in line with clean mobility materials and guidance provided in April recycling intact Robust H1 performance in challenging market conditions Dealing with agility in challenging market conditions while consisten
Slide 26: Q&A
:; umicore materials fr a better life Q&A
Slide 27: Financial calendar
Financial calendar 27 August 2019 Payment date for the interim dividend 7 February 2020 Full Year Results 2019 30 April 2020 Ordinary General Meeting of Shareholders ` Umicore H1 2019 performance 27
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