Umicore Sa · EURONEXT:UMI
Umicore Sa — H1 2020 Earnings Presentation
17 slides from Umicore Sa's earnings presentation, Jul 31, 2020
Slide 1: Umicore H1 2020 review
Umicore H1 2020 review 31 July 2020
Slide 2: Overview
Overview Keeping our people healthy and ensuring safe working conditions Environmental focus on the Hoboken plant Significant improvement in safety performance COVID-19 impact on the business Long term growth drivers remain intact Q&A 2
Slide 3: Coronavirus spread
Coronavirus spread Source: World Health Organization 3
Slide 4: Umicore globally
Umicore globally North America Europe 706 6,100 people people Asia / Pacific South America 3,285 people 607 people Africa 240 people 4
Slide 5: The health and safety of our employees
The health and safety of our employees Strict hygiene and other precautionary measures in all facilities worldwide. A dedicated task force monitoring operations globally with a focus on protecting employees’ health. Business and workplace Personal safety measures safety measures Business travel susp
Slide 6: Lead in blood levels around the Hoboken plant
Lead in blood levels around the Hoboken plant Lead in blood evolution (average) CDC individual blood lead reference value in µg/dl 2019 readings historically low, well below 5µg/dl norm. Unexpected increase, despite dust emissions well below the legal norm. Investigations ongoing, exploring sustaina
Slide 7: Incidents on the Hoboken plant
Incidents on the Hoboken plant Fire incidents Fire in lead refinery in March Small fire on the roof of a waste water treatment section in July Root-cause investigations ongoing, increased focus on prevention and fire protection Continue substantial investments to the environment. Intensify the inves
Slide 8: Significant improvement of safety performance
Significant improvement of safety performance Lost Time Accidents Additional targeted safety action plans, focus on 50 behavioural change. 40 30 Regular safety inspections. 20 10 Safety inspections and evaluation criteria to increase 0 personal engagement towards safety. H1 2019 H1 2020 Frequency Ra
Slide 9: Key figures H1 2020
Key figures H1 2020 REVENUES Adjusted EBIT Free Operating Cash Flow € 108 m € 1.6 bn € 243 m Net debt at € 1,349 m -4% YoY Stable YoY Net debt / LTM Adj. EBITDA 1.75x Adjusted NET PROFIT Adjusted EBITDA CAPEX € 152 m (Group share) € 376 m € 148 m +5% YoY Adjusted EPS € 0.62 ROCE 10.9% Interim divide
Slide 10: Immediate and longer-term measures to manage the COVID-19 crisis
Immediate and longer-term measures to manage the COVID-19 crisis Immediate response Preserving cash Assessing production Strengthening of funding footprint and asset utilization structure and increasing liquidity Reduce costs (e.g. production Consolidation of North American Additional funding: place
Slide 11: Recycling H1 2020 performance
Recycling H1 2020 performance Revenues +40%; Adj. EBIT +150%; increased volumes, higher metal prices and favorable supply mix REVENUES 600 450 Precious Metals Recycling 440 300 368 339 327 323 318 313 311 300 Higher processed volumes (vs. extended maintenance 150 in H1 19) 0 H1 2016 H2 2016 H1 2017
Slide 12: COVID-19 outbreak: impact on auto-industry
COVID-19 outbreak: impact on auto-industry H1 2020 YoY evolution of passenger car production across all powertrains (source: IHS & Umicore - 20/07/2020) China Europe North America Global market 2.500.000 2.500.000 2.500.000 9.000.000 -47% -34% -27% 8.000.000 -12% -54% -39% -67% -62% -26% 2.000.000 2
Slide 13: Catalysis H1 2020 performance
Catalysis H1 2020 performance Revenues -20% and Adj. EBIT -75%; severe impact from COVID-19 and related car OEM production shutdowns REVENUES 800 743 717 600 709 652 633 620 Automotive Catalysts 598 571 565 400 Widespread car OEM production shutdowns and car 200 sales plunging 0 H1 2016 H2 2016 H1 2
Slide 14: E&ST H1 2020 performance
E&ST H1 2020 performance Revenues -8%; Adj. EBIT -47%; severe COVID-19 impact and higher fixed costs REVENUES Rechargeable Battery Materials 700 Overall volumes of cathode materials lower YoY and 600 650 639 618 607 500 557 materially lower than expected due to COVID-19 495 400 398 Higher fixed cost
Slide 15: Long-term growth drivers remain intact
Long-term growth drivers remain intact COVID-19 stimuli plans aimed at a ‘green recovery’ in China and Europe China: Extension of NEV subsidy plan from 2020 until end 2022 and confirmation of increased mandatory NEV credit targets for 2021-2023 ENERGY & SURFACE TECHNOLOGIES Europe: EU recovery plan
Slide 16: Wrap-up
Wrap-up Strong performance in Resilient H1 20 results, in Umicore’s priority remains Recycling offset COVID-19 most challenging context to keep its employees impact in Catalysis and ever faced, highlight merits healthy and ensure safe Energy & Surface of complementarity of working conditions Technol
Slide 17: Q&A
:; umicore materials fr a better life Q&A