Umicore Sa · EURONEXT:UMI
Umicore Sa — H1 2016 Earnings Presentation
21 slides from Umicore Sa's earnings presentation, Jul 29, 2016
Slide 1: 2016 half year results
2016 half year results 29 July 2016 1
Slide 2: Overview
Overview • Highlights H1 2016 • Outlook 2016 • Business review H1 2016 • Financial review H1 2016 • Wrap-up • Q&A 2
Slide 3: Highlights H1 2016
Highlights H1 2016 • Revenues +1% and REBIT +3%: strong growth in Automotive Catalysts and Rechargeable Battery Materials more than offset impact of lower metal prices on various recycling activities • Growth investments continue with focus on clean mobility and recycling: • Acceleration of capacity
Slide 4: Outlook 2016
Outlook 2016 ENERGY & SURFACE CATALYSIS RECYCLING TECHNOLOGIES • Strong demand levels and • Full year earnings slightly • Supportive supply product mix in Automotive higher, driven mainly by environment Catalysts growing demand from the • Ramp-up of Hoboken • Higher full year revenues automotive seg
Slide 5: Outlook 2016
Outlook 2016 Umicore expects full year recurring EBIT to be in the range of € 345 - € 365 million* assuming current metal prices continue to prevail. *including the contribution of Zinc Chemicals for the full year 5
Slide 6: Business review H1 2016
_ umicore Business review H1 2016
Slide 7: 2016 H1 business review: Catalysis
2016 H1 business review Revenues Revenues +9% and recurring EBIT +27%: • Strong growth in Automotive Catalysts: • High demand for LDV catalysts; outperforming the car market globally and in Europe and China in particular million € • Good product mix for LDV with a higher share of diesel • Higher dem
Slide 8: 2016 H1 business review: Energy & Surface Technologies
2016 H1 business review Revenues Revenues -3% and recurring EBIT -8%: • Strong growth in Rechargeable Battery Materials, driven by the transportation segment • Lower revenues in Cobalt & Specialty Materials due to lower cobalt and nickel prices million € • Higher revenues for Electroplating reflecti
Slide 9: 2016 H1 business review: Recycling
2016 H1 business review Revenues Revenues -6% and recurring EBIT -20%: • Lower revenues for Precious Metals Refining: • Slightly higher processed volumes more than offset by impact of lower metal prices • Solid supply feed and favorable mix million € • Ramp-up of 40% capacity expansion started; furt
Slide 10: Discontinued operations
Discontinued operations Revenues Lower revenues for Zinc Chemicals: • Higher demand in most product groups offset by impact of lower zinc price on recycling margins • Sale of the business unit to OpenGate Capital; closing expected in 2H 2016 million € Slightly higher revenues for Building Products:
Slide 11: Employees and Safety
Employees and Safety People Safety • Accident frequency rate at 2.95 • Accident severity rate at 0.87 • Fatal accident in Manaus, Brazil; efforts will continue in order to ensure any and all possible areas for improvement are identified and pursued People Number of employees in fully consolidated co
Slide 12: Financial review
_ umicore Financial review
Slide 13: Stable performance in a challenging metal price environment
Stable performance in a challenging metal price environment REBIT & ROCE Recurring EBIT +3% despite lower metal prices: driven mainly by strong performance in Automotive Catalysts and Rechargeable Battery Materials million € Resilient margins reflect profitable growth in non-recycling activities: •
Slide 14: Solid cashflows
Solid cashflows Operating cashflow Operating cashflow at € 231 million: million € • Up versus H2 2015 • Down year on year versus an exceptional strong H1 2015 € 47 million decrease in working capital: • Increase in working capital of € 22 million stemming from the business expansion • Offset by € 69
Slide 15: Expenditures for growth
Expenditures for growth Capex & acquisitions Capex € 86 million relating mainly to growth million € projects in clean mobility and recycling: • Recycling: auxiliary investments linked to 40% capacity expansion in Hoboken • Catalysis: new production plant in Thailand • Energy & Surface Technologies:
Slide 16: Stable net financial debt
Stable net financial debt Operating cashflow = cashflow from operations before change in working capital requirement plus dividend and grants received* * Operating cash flow and changes in working capital requirement adjusted for € 69 million fine in Building Products 16
Slide 17: Strong capital structure maintained
Strong capital structure maintained Net financial debt Net financial debt of € 298 million million € Corresponds to : • 0.6 x average net debt to recurring EBITDA ratio • 14.3% gearing ratio Average weighted net interest rate increased slightly to 1.80% Net debt Gearing ratio Average net debt
Slide 18: Non-recurring elements
Non-recurring elements Non-recurring EBIT mainly affected by € 69 million fine imposed by the French Competition Authority. € 13 million reversal of impairments for permanently tied-up metal inventories Total negative impact on net result of € 70 million 18
Slide 19: Wrap-up
Wrap-up • Revenues up 1% and REBIT up 3%: strong growth in Automotive Catalysts and Rechargeable Battery Materials more than offset the impact of lower metal prices on various recycling activities • Growth projects in clean mobility and recycling continue and the expansions of Rechargeable Battery M
Slide 20: Q&A
© umicore Q&A
Slide 21: Financial calendar
Financial calendar 21 October 2016 2016 Third Quarter Trading Update 10 February 2017 Full Year Results 2016 25 April 2017 Ordinary General Meeting of Shareholders 25 April 2017 2017 First Quarter Trading Update 31 July 2017 Half Year Results 2017 Forward-looking statements This presentation contain