Umicore Sa · EURONEXT:UMI
Umicore Sa — Shareholder Meeting (April 2022)
68 slides from Umicore Sa's shareholder meeting presentation, Apr 28, 2022
Slide 1: Ordinary, special and extraordinary shareholders' meetings
Ordinary, special and extraordinary shareholders' meetings 28 April 2022
Slide 2: Agenda
Agenda 1. 2. 3. Review of 2021 : Launch of our Q1 2022 business Record results ‘Let’s go for update and cash flows Zero’ ESG strategy 4. 5. 6. Outlook 2022 Shaping of Governance Umicore’s future strategy and Capital Markets Day 7. 8. 9. Remuneration Q&A Voting 2 Umicore shareholders' meetings 28 Apr
Slide 3: Message from Mathias Miedreich, CEO
Umicore is uniquely positioned to provide tomorrow’s sustainable solutions for clean mobility and recycling, and I am proud to lead a company with such a strong sense of purpose and deeply rooted technology focus. I am very impressed by the talented teams I have met, the industry-leading product and
Slide 4: Overview of 2021
Overview of 2021 But also… All-time record results and cash flows Umicore unveils bold sustainability ambitions, committing to carbon neutrality by 2035 Creation of Joint Venture with Volkswagen AG for battery materials in Commissioning of Umicore’s new cathode Europe materials plant in Nysa, Poland
Slide 5: Review of 2021: Record results and cash flows
Review of 2021 : Record results and cash flows Umicore shareholders' meetings 28 April 2022 5
Slide 6: Record results
Record results Strong operational performance across business groups, further boosted by metal prices Revenues Adjusted EBIT Revenue and earnings growth across billion € million € business groups 971 4,0 4.0 1000 ▪ Strong and resilient operational +22% 900 +81% performance in all business units 3,5
Slide 7: Free operating cash flow at record level
Free operating cash flow at record level High cash conversion, lower working capital and stable capex million €, continued operations only 1405 1200 1238 800 707 700 489 627 436 444 Cash flow from operations after 549 603 200 323 431 92 167 13 213 changes in working capital more than -78 -300 -113 -
Slide 8: Substantial outperformance of the automotive market in Catalysis
Substantial outperformance of the automotive market and high operational efficiency in Catalysis Umicore shareholders' meetings 28 April 2022
Slide 9: Catalysis FY 2021 performance
Catalysis FY 2021 performance Revenues +24% and adj. EBIT +112% H2 EBITDA margin H1 EBIT margin Strong performance across business units further supported by favorable PGM price environment Revenues 1.687 1.700 1.460 1.360 1.364 1.400 1.253 Automotive Catalysts 780 1.100 652 743 Strongly outperf
Slide 10: Sharp demand recovery and higher EV cathode materials volumes in E&ST
Sharp demand recovery in key end-markets and higher sales volumes of EV cathode materials in E&ST Umicore shareholders' meetings 28 April 2022
Slide 11: E&ST FY 2021 performance
E&ST FY 2021 performance Revenues +12% and adj. EBIT +85%, reflecting outstanding CSM contribution H1 EBITDA margin Revenues H2 EBIT margin 1289 1225 1174 1.300 1045 Rechargeable Battery Materials 1.050 894 639 618 580 EV NMC cathode materials volumes well up 800 488 495 Strong growth in EU sale
Slide 12: Global cathode materials capacity
Global cathode materials capacity Targeting to almost double capacity towards 2024 Growing portion of high nickel sales volumes ▪ Well-advanced qualifications for high nickel platforms with 38% 2021 European and Asian cell and car OEMs 65 GWh 62% ▪ First sizeable portion of high nickel cathode mater
Slide 13: Battery Materials JV with Volkswagen AG
Battery Materials JV with Volkswagen AG Securing significant cathode materials volumes in Europe JV Principles 1. JV providing secured access to significant part of the European EV market resulting in substantial economies of scale for Umicore 1. 2. Valorizing Umicore’s long-standing technological i
Slide 14: Strong performance in Recycling
Robust operational performance, strong contribution from trading and exceptional precious metals price environment in Recycling Umicore shareholders' meetings 28 April 2022
Slide 15: Recycling FY 2021 performance
Recycling FY 2021 performance Revenues +33% and adj. EBIT +58% H1 EBITDA margin H2 EBIT margin Precious Metals Refining Revenues 1.200 1108 Extraordinary metal price environment, with average price levels of 950 836 most precious metals well above previous year 681 457 650 626 700 Robust operati
Slide 16: Launch of our 'Let's go for Zero' ESG strategy
Launch of our ‘Let’s go for Zero’ ESG strategy Umicore shareholders' meetings 28 April 2022 16
Slide 17: We continue to be a leader in sustainability
We continue to be a leader in sustainability Broader, bolder, faster, better Net Zero GHG emissions by 2035 Zero Zero harm inequality 17 Umicore shareholders' meetings 28 April 2022
Slide 18: Net zero GHG by 2035
Net zero GHG by 2035 Umicore shareholders' meetings 28 April 2022 18
Slide 19: Our ambitious commitment: net zero GHG by 2035
Our ambitious commitment: Net zero GHG scope 1 & 2 emissions by 2035 -100% Net Zero -20% -50% GHG 2019 2025 2030 2035 Baseline Scope 3 GHG emissions reduction target in 2022 for SBTi validation of our Net Zero GHG ambitions 19 Umicore shareholders' meetings 28 April 2022
Slide 20: Levers to achieve net zero GHG emissions by 2035
Levers to achieve Net zero GHG emissions by 2035 Innovation & strategic Renewable Energy and Carbon Neutral collaboration electricity process efficiency growth Umicore shareholders' meetings 28 April 2022 20
Slide 21: Net zero GHG: performance 2021
Net zero GHG: performance 2021 Decrease in GHG intensity and increase in renewable energy Scope 1 + 2 GHG intensity ratio* Tonnes CO2e/millions of € Although total emissions increased 16% in 2021, reflecting increase in activity in Recycling and Energy & Surface 240 235 236 Technology, our commitmen
Slide 22: Zero harm
Zero harm Umicore shareholders' meetings 28 April 2022 22
Slide 23: Managing our impact with care
Managing our impact with care Continue our commitment to significantly reduce our emissions 2021 performance Net zero GHG emissions -25% by 2035 diffuse -20% by emissions by 2025, 2025 -50% by 2030 (vs 2020) Continuous improvement on metal emissions 1 Relative impact of diffuse emissions (Pb, As and
Slide 24: Caring for safety and wellbeing at work
Caring for safety and wellbeing at work No No occupational work-related excess injuries exposure 2021 performance: Roll-out of programs aimed at creating a more prominent safety culture Physical Occupational wellbeing wellbeing Reinforcing critical processes and safety standards Mental Social Physic
Slide 25: Pioneering approach to sustainable sourcing
Pioneering approach Over 15 years of sustainable & ethical sourcing 2021 performance: Umicore was the first company ever to receive third-party validation Platinum Ecovadis Sustainability Rating – for its cobalt due diligence practices Top 1% Updated Global Sustainable Sourcing policy to mitigate su
Slide 26: Zero Inequality
Zero Inequality Umicore shareholders' meetings 28 April 2022 26
Slide 27: Diversity of thought to keep us ahead
Diversity of thought to keep us ahead WE WHERE 11,050 Gender parity in management as WE ARE Group employees GO FOR soon as possible with 35% women in 2021 management by 2030 25% Women in management 21.6% Increased non-European Non-Europeans in senior management representation in management teams by
Slide 28: Assembling a smart index to assess Diversity of Thought
Assembling a smart index to assess Diversity of Thought amongst Umicore’s senior management population Components Purpose % Women in senior management Gender Diversity A Diversity of Thought Index has been designed at the level of senior management and focuses on how % International Leadership in se
Slide 29: Best in class Governance
Best in class Governance Umicore shareholders' meetings 28 April 2022 29
Slide 30: Best in class Governance
Best in class Governance Supporting our ambitions and increasing disclosure INCREASED ESG 1 TRANSPARENCY 3 RISKS • ESG governance • Pursuing SBTi validation of our Net • Sustainability-linked remuneration Zero approach • Support TCFD and begin working on an alignment for Umicore • Defining ambitions
Slide 31: Governance: performance 2021
Governance: performance 2021 Becoming ‘best in class’ • Implementation of new ESG governance allowing to steer progress in ESG targets • Increased disclosure (e.g., emissions, water) in the 2021 Annual Report providing additional visibility and clarity on the impact and value Umicore contributes to
Slide 32: Q1 2022 business update
Q1 2022 business update Umicore shareholders' meetings 28 April 2022 32
Slide 33: Strong Q1 performance across business groups
Strong Q1 performance across business groups In a volatile market and despite rising cost inflation ENERGY & SURFACE CATALYSIS RECYCLING TECHNOLOGIES Due to its strong position and customer mix In line with expectations, higher sales High precious metal prices impact in Q1 in gasoline applications U
Slide 34: 2022 outlook
2022 outlook Umicore shareholders' meetings 28 April 2022 34
Slide 35: Umicore confirms strong performance in 2022
Umicore confirms strong performance in 2022 Based on the first-quarter performance and current metal prices, Umicore confirms its outlook for another strong performance in 2022, somewhat above current consensus expectations1. This outlook includes a cost inflation headwind which is currently estimat
Slide 36: Shaping of Umicore's future strategy and Capital Markets Day
Shaping of Umicore’s future strategy and Capital Markets Day Umicore shareholders' meetings 28 April 2022 36
Slide 37: Imagine our journey towards 2030
Imagine our journey towards 2030… Capital Markets Day - 22 June 2022 in London Umicore is setting out its strategic roadmap to further build on its leadership positions in clean mobility materials and recycling and its pioneering approach to sustainability. On June 22nd, the Management Board will sh
Slide 38: Governance
Governance Umicore shareholders' meetings 28 April 2022 38
Slide 39: Supervisory board
Supervisory board 10 regular board meetings in 2021 (mostly videoconferences) 99% attendance for regular board meetings 100% attendance for all committees • Financial performance of the Umicore group, • Environmental, social and sustainability governance (ESG) related topics, including but not limit
Slide 40: Proposed supervisory board member
Proposed supervisory board member Alison Henwood 40 Umicore shareholders' meetings 28 April 2022
Slide 41: Remuneration
Remuneration Umicore shareholders' meetings 28 April 2022 41
Slide 42: Management board: current remuneration policy
Management board: current remuneration policy Current remuneration policy: Advantages • Very much geared towards medium- and long- • Very strong alignment of long-term interests of term shareholder value creation – lots of “skin in shareholders and Umicore executives the game” • Simple, straight for
Slide 43: A new remuneration policy that is fit for purpose
A new remuneration policy that is fit for purpose • Reduced number of fixed shares as of 2022 (2023 grant) and Stronger links between redistributed over increased variable remuneration and fixed sustainability, strategy and annual fee pay → pay mix with a higher portion of variable remuneration and
Slide 44: Key changes: short-term incentives
Key changes Short-term incentives: new annual variable compensation plan Through 2021 2022 30% Financial Performance 50 % Individual Performance STI (annual) ROCE Financial performance cash or in shares Business strategy progress adjusted EBITDA STI (annual) Sustainability strategy progress Pay 0% -
Slide 45: Key changes: long-term incentives
Key changes Long-term incentives: new multi-year Performance Share Unit plan Through 2021 2022 50 % Financial Performance 50% Sustainability Performance LTI (3 years) ROCE GHG emissions cash or in shares Diffuse emissions Total Shareholder Return LTI PSU (3 years) shares Diversity of thought index 1
Slide 46: Remuneration Management Board 2021
Remuneration Management Board 2021 in (€) Name Fixed Undeferred Deferred Shares Stock Pension Compens Variable Variable Other Total Options Plans ation 50% 50% Grynberg M. (1) 600.000 300.000 448.000 276.855 684.800 186.118 1.853.020 4.348.792 Miedreich M. (2) 250.000 0 0 16.610 0 52.200 1.019.502 1
Slide 47: Supervisory Board remuneration
Supervisory Board Remuneration • Fixed fee reflecting the level of responsibility Policy • Attendance fee • Share-based compensation • Supervisory board members: • Increase annual fixed fee: 30k € (previously 27k €) Changes • Increase attendance fee/meeting: 3k/4k € (previously 2.5k/3.5k €) as of 20
Slide 48: Q&A
Q&A Umicore shareholders' meetings 28 April 2022 48
Slide 49: Procedures - voting
Procedures - voting Umicore shareholders' meetings 28 April 2022 49
Slide 50: Shareholders' meeting - procedures
Shareholders’ meeting - procedures • Convening – supporting documents • Attendance • Conduct of the meetings - voting procedures 50 Umicore shareholders' meetings 28 April 2022
Slide 51: Agenda
Agenda Ordinary shareholders’ meeting 1. Annual report of the supervisory board and report of the statutory auditor on the statutory annual accounts 2021 2. Approval of the remuneration report 3. Approval of a new remuneration policy 4. Approval of the statutory annual accounts 2021 including the pr
Slide 52: Agenda
Agenda 5. Communication of the consolidated annual accounts as well as the supervisory board report and the auditor's report on those consolidated annual accounts 6. Discharge to the members of the supervisory board 7. Discharge to the statutory auditor 52 Umicore shareholders' meetings 28 April 202
Slide 53: Agenda
Agenda 8. Supervisory board composition • Re-electing Ms Françoise Chombar as independent member of the supervisory board for a period of 3 years • Re-electing Mr Laurent Raets as member of the supervisory board for a period of 3 years • Electing Ms Alison Henwood as new, independent member of the s
Slide 54: Agenda
Agenda Special shareholders’ meeting Approval of a change of control provision 54 Umicore shareholders' meetings 28 April 2022
Slide 55: Agenda
Agenda Extraordinary shareholders’ meeting 1. Renewal of the authorization to acquire own shares 2. Renewal of the powers granted to the supervisory board in the framework of the authorized capital 55 Umicore shareholders' meetings 28 April 2022
Slide 56: First resolution: Approval of the remuneration report
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering First resolution Approval of the remuneration report Première résolution Approbation du rapport de rémunération Eerste besluit Goedkeuring van het remuneratieverslag 56 Umicore shareholders' meetings 28 April 2022
Slide 57: Second resolution: Approval of a new remuneration policy
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering Second resolution Approval of a new remuneration policy Deuxième résolution Approbation d’une nouvelle politique de rémunération Tweede besluit Goedkeuring van een nieuwe remuneratiebeleid 57 Umicore shareholders' meet
Slide 58: Third resolution: Approval of statutory annual accounts
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering Third resolution Approval of the statutory annual accounts of the company for the financial year ended on 31 December 2021 including the proposed allocation of the result Troisième résolution Approbation des comptes st
Slide 59: Fourth resolution: Discharge to supervisory board members
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering Fourth resolution Discharge to the members of the supervisory board Quatrième résolution Décharge aux membres du conseil de surveillance Vierde besluit Kwijting aan de leden van de raad van toezicht Umicore shareholder
Slide 60: Fifth resolution: Discharge to the statutory auditor
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering Fifth resolution Discharge to the statutory auditor Cinquième résolution Décharge au commissaire Vijfde besluit Kwijting aan de commissaris 60 Umicore shareholders' meetings 28 April 2022
Slide 61: Sixth resolution: Re-electing Françoise Chombar
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering Sixth resolution Re-electing Ms Françoise Chombar as independent member of the supervisory board for a period of three years Sixième résolution Réélection en qualité de membre indépendant du conseil de surveillance de
Slide 62: Seventh resolution: Re-electing Laurent Raets
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering Seventh resolution Re-electing Mr Laurent Raets as member of the supervisory board for a period of three years Septième résolution Réélection en qualité de membre du conseil de surveillance de Monsieur Laurent Raets po
Slide 63: Eighth resolution: Electing Alison Henwood
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering Eighth resolution Electing Ms Alison Henwood as independent member of the supervisory board for a period of three years with effective date 1 September 2022 Huitième résolution Election en qualité de membre indépendant
Slide 64: Ninth resolution: Supervisory board remuneration
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering Ninth resolution Approving the supervisory board members’ remuneration Neuvième résolution Approbation des émoluments des membres du conseil de surveillance Negende besluit Goedkeuring van de voorgestelde vergoeding va
Slide 65: Special meeting: Approval of a change of control provision
Special general meeting Assemblée générale spéciale Bijzondere algemene vergadering First resolution Approval of a change of control provision, in accordance with Article 7:151 of the Code of companies and associations (sustainability linked revolving facility) Première résolution Approbation d’une
Slide 66: Extraordinary meeting: Authorisation to acquire own shares
Extraordinary general meeting Assemblée générale extraordinaire Buitengewone algemene vergadering First resolution Authorising the Company and it direct subsidiaries to acquire own shares in the Company on a regulated market, until 30 June 2026 within a limit of 10% of the subscribed capital Premièr
Slide 67: Extraordinary meeting: Authorised capital increase
Extraordinary general meeting Assemblée générale extraordinaire Buitengewone algemene vergadering Second resolution Grant a new authorization to the supervisory board to increase the capital of the Company in one or more times by a maximum amount of EUR 55,000,000 for a duration of five years. Deuxi
Slide 68: Umicore
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