Umicore Sa · EURONEXT:UMI
Umicore Sa — Investor Day (September 2015)
15 slides from Umicore Sa's investor day presentation, Sep 2, 2015
Slide 1: 2 September 2015, Andaz London Liverpool Street
2 September 2015 Andaz London Liverpool Street
Slide 2: Driving Returns and Value
Driving Returns and Value Speaker Filip Platteeuw Chief Financial Officer
Slide 3: By 2020 we have…
By 2020 we have… Clear leadership Doubled in clean mobility the size of materials and the business in recycling terms of earnings Rebalanced Turned the portfolio sustainability and earnings into a greater contributions competitive edge 3
Slide 4: Framework for value creation
Framework for value creation Strong Focus on Solid growth returns cashflows • Multiple growth drivers • Group and segment • Strong self-funding • Supported by investments returns > cost of capital capacity • Privilege organic growth • Confirm 15%+ ROCE • Maintain strong target balance sheet • Value
Slide 5: Dedicated growth & return mandate per business unit
Dedicated growth & return mandate per business unit 1/3rd of revenues 2/3rd of revenues and capital employed and capital employed Create High 2/3rd of Disproportionate Manage investments focus on value primarily revenues both for growth and R&D in outpacing through growth secular growth and capital
Slide 6: Acceleration of growth
Acceleration of growth Revenues Recurring EBITDA EUR m EUR m 3750 800 CAGR CAGR ‘10-’15 ‘10-’15 3000 600 2250 400 1500 1% -3% 9% 200 6% 750 9% 11% 0 0 2010 2015E 2020E 2010 2015E 2020E Recycling CAGR Group Energy & 6% 7% excl Discontinued 2% 8% Surface operations Technologies Catalysis Recurring EBI
Slide 7: Investments focused on key growth areas
Investments focused on key growth areas Capex 2010-2015E Capex 2010-2015E Corporate incl. Group R&D Discontinued 5% Disproportionate 9% 28% Catalysis focus on outpacing market growth 30% 45% 75% EUR 1.4bn Growth in line 33% 15% 10% Recycling 25% with served Energy & 25% Surface market Technologies C
Slide 8: Lower relative capital intensity as payback set to accelerate
Lower relative capital intensity as payback set to accelerate 2010-2012 2012-2015 2015+ Prepare Focus Accelerate Investment • Prepare for major • Intensify investments • Further investments in selected areas; focus growth initiatives in major growth areas return to a more normalized Group capital in
Slide 9: List of recent investments still to yield full contribution
List of recent investments still to yield full contribution Business Business Start-up Location Group Unit (expected) New production facility Nowa Ruda, Poland Q4 2015 AC New technology development center Incheon, South Korea H2 2015 Catalysis New production facility Hemaraj, Thailand H2 2016 Produc
Slide 10: Privilege organic growth with M&A as accelerator
Privilege organic growth with M&A as accelerator Acquisition criteria Strategic fit Financials Materials focus Competence fit Cash and EPS accretive in short term Leadership and innovation Value creative (synergies) Sustainability Stay investment grade Integration and synergy value M&A to Meaningful
Slide 11: Consistent and broad base for value creation
Consistent and broad base for value creation 1H15 ROCE distribution based on Capital Employed Post tax value creation (excl Corporate & Discontinued (excl Discontinued operations) operations) EUR m Below 600 8% 10.5% ROCE Above 500 7% 18% 15% ROCE 6% 26% 400 5% 300 4% Between 10.5-12,5% 15% 200 3% R
Slide 12: Restoring return balance and potential outside of Recycling
Restoring return balance and potential outside of Recycling Group ROCE 1H15 = 14.4% ROCE Group ROCE excl. Discontinued operations = 14.8% 40% Recycling 35% 30% 25% 20% Pre-tax Energy & Surface Discontinued Catalysis Technologies operations Target rate 15% 15% Hurdle rate 12.5% 10% Cost of capital es
Slide 13: Balanced cash use: growth investments versus shareholder returns
Balanced cash use: growth investments versus shareholder returns Use of operating Use of operating cashflow 2010-1H15 free cashflow 2010-1H15 Working EUR 1.2bn capital needs Taxes & net Operating interest 7% free cashflow 29% Acquisition Dividends EUR 48% 5% 20% 2.6bn Share buybacks 45% Capex 49% Ot
Slide 14: Strong capital structure supports growth and cash returns
Strong capital structure supports growth and cash returns Net financial debt EUR m Maintained robust 0.6 0.6 600 capital structure 19% despite sizeable growth 0.5 0.5 investments and cash 0.5 15% 15% returns to shareholders 400 13% 0.4 11% 11% 360 Substantial headroom 314 298 to fund organic and 267
Slide 15: How we will achieve our 2020 goals
How we will achieve our 2020 goals Investment Strong in key growth growth profile areas Focus Solid on returns cashflows 15