Strategic review
Capital Markets Event
Korea 2012
Marc Grynberg, CEO
2
Key growth drivers
Catalysis:
• Global legislation
• Emerging markets
• HDD
Performance Materials:
• Industrial producti...
3
Vision 2015: our growth profile
Faster growth
Catalysis
Energy Materials
Recycling
• High R&D
• High investments
• Many ...
4
Umicore growth profile
Technology to remain the key differentiator
Growth will not be linear
Growth will not be pursued ...
5
Strategic roadmap
Prepare
Regain profitability
of 2007-2008
Lay the foundations
for exceptional
growth initiatives (eg
b...
Progress report
7
REBIT&ROCE
64.2
16.7
77.7
89.59.4%
3.0%
12.4%
12.7%
0
50
100
2008 2009 2010 2011
(in million €)
Revenues
712
586
699
813...
8
Catalysis priorities 2012
Expansion in existing markets for HDD and
LDV
Investment in emerging automotive
markets
Increa...
9
Energy Materials progress report
Significant growth in cathode materials
sales especially for electrified vehicle
batter...
10
Energy Materials priorities 2012
Develop RBM as stand-alone BU
+ new products, infrastructure, IP
Start next expansion ...
11
Performance Materials progress report
2011 growth well above global GDP levels
in most areas
Investments up by 32%
Succ...
12
Performance Materials priorities 2012
Further expansion of Platinum Engineered
Materials in Germany
Expanding Building ...
13
Recycling progress report
Outstanding revenue growth and record
levels of profit
Strong supply environment and favourab...
14
Recycling priorities 2012
Bring new investments on-stream:
sampling, jewellery
UHT technology:
• Trialling of new mater...
Group financial / investment summary
16
Financial and investment summary
Revenues
1,910
2,100
1,723
2,000
2,290
0
600
1,200
1,800
2,400
2007 2008 2009 2010 201...
17
Financial and investment summary
Capex
153
216
191
172
213
0
100
200
300
2007 2008 2009 2010 2011 2012e
(in million €)
18
Financial and investment summary
Capex
153
216
191
172
213
0
100
200
300
2007 2008 2009 2010 2011 2012e
(in million €)
Social & environmental
progress
20
Great place to work
Zero Accidents
Initiatives underway to further promote safety culture at Umicore eg Umicore Safety
...
21
Eco-efficiency
Reduce carbon footprint
We have reduced emissions by 14% vs 2006 (for comparable scope of activity). Ene...
22
Stakeholder engagement
Sustainable procurement
Intense supplier screening was conducted for most non raw materials supp...
Umicore in the driver’s seat
24
World automotive production outlook
by region
Car production
0
10
20
30
40
50
60
2000
2001
2002
2003
2004
2005
2006
200...
25
World automotive production scenarios
by drivetrain
Scenario 1
60
70
80
90
100
110
2011
2012
2013
2014
2015
2016
2017
2...
26
EU 2050 CO2 roadmap
27
Reduction targets exist in most regions
95
Europe
-38%154 152
USA
-37%
240
109
Japan
-23%141
145
China
-22%185
Source: ...
28
Different engine configurations
will be needed to reach the 2050 goals
100
50
150
0
0 400 600200 800 1000 1200 1400
CO2...
29
Umicore’s product offer
covers all powertrain possibilities
ICE HEV PHEV EV
Normal Start-stop Mild Full
Parallel
system...
31
Global leadership
position
Regional positions
Market leader
(#1 or #2 position)
Smaller player
(distant #3)
Circles ind...
32
Automotive Catalysts
Umicore has built a leading position in light
duty catalysis – especially for complex
engine types...
33
Rechargeable battery materials
Extensive product and IP portfolio:
LCO, NMC, LFP
Broad production footprint close to
cu...
34
Fuel Cells
Umicore Precious Metals Chemistry
produces electrocatalysts
Solvicore JV develops membrane electrode
assembl...
35
Recycling
Umicore is unique in its recycling
capabilities relating to the sustainable
powertrain roadmap
• Automotive c...
36
Umicore is in the driver’s seat
Automotive catalysts
Battery materials
Fuel cell materials
Recycling
37
Umicore is in the driver’s seat
Automotive catalysts
Battery materials
Fuel cell materials
Recycling
ICE
38
Umicore is in the driver’s seat
Automotive catalysts
Battery materials
Fuel cell materials
Recycling
HEV
39
Umicore is in the driver’s seat
Automotive catalysts
Battery materials
Fuel cell materials
Recycling
BEV
40
Umicore is in the driver’s seat
Automotive catalysts
Battery materials
Fuel cell materials
Recycling
FCEV
42
Forward-looking statements
This presentation contains forward-looking information that involves risks and
uncertainties...
2012 Capital Markets Days Seoul - CEO introduction
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  • With Vision 2015, we have defined what we want to do: the growth focus on clean technologies is clear, I believe, and I will not elaborate on that now. We have not only defined the what, we have also clearly determined the how: we want to differentiate ourselves through technology and leading performance on the environmental and people front. It is not only about which business we want to be in, it is also about how we make ourselves more energy efficient…pollute less….accident free….attract and retain talent. I am often asked if we are prepared to trade off financial returns against safety or enviromental performance. The answer, unambiguously, is NO. Vision 2015 is not about compromises, it is about integrating all perfromance dimensions: they are inseparable and together are essential for the future success of the business. At the centre of this is innovation. Everyone in the company should consider themselves as an innovator and we should embrace and encourage innovation in all its forms and areas to help us make strides forwards not just in what we do but how we do it
  • Cities added
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  • 2012 Capital Markets Days Seoul - CEO introduction

    1. 1. Strategic review Capital Markets Event Korea 2012 Marc Grynberg, CEO
    2. 2. 2 Key growth drivers Catalysis: • Global legislation • Emerging markets • HDD Performance Materials: • Industrial production • Geographical expansion • Products with reduced environmental impact Recycling: • Materials scarcity • Legislation • Energy efficient metals recovery Energy Materials: • New (H)EV vehicles • Photovoltaic demand • Demand for safer products
    3. 3. 3 Vision 2015: our growth profile Faster growth Catalysis Energy Materials Recycling • High R&D • High investments • Many new applications and/or markets GDP growth Performance Materials • Lower R&D • High investments • Some new applications and/or markets
    4. 4. 4 Umicore growth profile Technology to remain the key differentiator Growth will not be linear Growth will not be pursued at the expense of value creation Returns remain fundamentally important and Umicore’s goal is to generate an average return on capital of 15%+ between now and 2015
    5. 5. 5 Strategic roadmap Prepare Regain profitability of 2007-2008 Lay the foundations for exceptional growth initiatives (eg battery materials, HDD) Demonstrating the feasibility of others (eg battery recycling) Focus Intensification of investment efforts Initial pay-off for major growth initiatives in terms of market position and profitability Accelerate Acceleration of growth Growing into leadership positions Optimum performance Further investments in chosen areas 2010-2012 2012-2015 2015+
    6. 6. Progress report
    7. 7. 7 REBIT&ROCE 64.2 16.7 77.7 89.59.4% 3.0% 12.4% 12.7% 0 50 100 2008 2009 2010 2011 (in million €) Revenues 712 586 699 813 0 300 600 900 2008 2009 2010 2011 (in million €) Catalysis progress report Outstanding growth in most markets New HDD contracts in all regions New LDV contracts globally New investment wave: • Technology development centre in Suzhou, China • Production line for LDV and HDD in Suzhou, China • New HDD production line in Florange, France • New AC test centre approved for Brazil in Americana • New investments in PMC in Guarulhos, Brazil
    8. 8. 8 Catalysis priorities 2012 Expansion in existing markets for HDD and LDV Investment in emerging automotive markets Increase penetration with Japanese OEMs both in Japan and elsewhere Pursue PMC investments in USA Capex 53.0 46.0 45.7 49.5 0 25 50 75 2008 2009 2010 2011 (in million €)
    9. 9. 9 Energy Materials progress report Significant growth in cathode materials sales especially for electrified vehicle batteries Profitability lower due to start-up costs of new investments Qualification of new rotary targets in TFP made good headway Take-off of Ge substrate sales for CPV CSM successfully implementing its product and geographical diversification strategy Revenues 395.0 305.1 347.6 395.9 0 100 200 300 400 500 2008 2009 2010 2011 (in million €) REBIT&ROCE 57.3 23.9 43.9 41.0 6.7% 15.9% 9.5% 11.8% 0 25 50 75 2008 2009 2010 2011 (in million €)
    10. 10. 10 Energy Materials priorities 2012 Develop RBM as stand-alone BU + new products, infrastructure, IP Start next expansion phase in Korea Expansion of TFP Adapt EOM production footprint CSM to focus on supply of critical materials for the growth of CSM & RBM Capex 52.3 51.0 38.3 67.6 0 25 50 75 2008 2009 2010 2011 (in million €)
    11. 11. 11 Performance Materials progress report 2011 growth well above global GDP levels in most areas Investments up by 32% Successful steps in internationalizing the business & developing new market niches • Ammonia and cyanide-free products in Electroplating • Façade and PV in Building Products • Japanese footprint for Platinum Engineered Materials • Expansion strategy of Zinc Chemicals in Asia Revenues 483.4 404.2 446.3 471.2 0 200 400 600 2008 2009 2010 2011 (in million €) REBIT&ROCE 87.9 36.6 75.2 67.06.9% 14.9% 11.1% 12.8% 0 50 100 2008 2009 2010 2011 (in million €)
    12. 12. 12 Performance Materials priorities 2012 Further expansion of Platinum Engineered Materials in Germany Expanding Building Products’ coated materials production in France Further expansion in Asia Capex 33.5 23.9 23.9 31.6 0 25 50 2008 2009 2010 2011 (in million €)
    13. 13. 13 Recycling progress report Outstanding revenue growth and record levels of profit Strong supply environment and favourable market conditions for all businesses New investments launched: • Sampling • Water treatment • Thailand (Jewellery & Industrial Metals) Commissioning of the new UHT plant and trialling of various new feeds Revenues 508.2 426.7 506.1 609.5 0 200 400 600 800 2008 2009 2010 2011 (in million €) REBIT&ROCE 201.5 117.7 195.5 267.2 40.8% 73.5% 69.8%64.8% 0 100 200 300 2008 2009 2010 2011 (in million €)
    14. 14. 14 Recycling priorities 2012 Bring new investments on-stream: sampling, jewellery UHT technology: • Trialling of new materials for both precious and specialty metal containing residues. • Further market studies Further expansion in Jewellery & Industrial Metals Capex 66.1 54.9 50.3 55.7 0 25 50 75 2008 2009 2010 2011 (in million €)
    15. 15. Group financial / investment summary
    16. 16. 16 Financial and investment summary Revenues 1,910 2,100 1,723 2,000 2,290 0 600 1,200 1,800 2,400 2007 2008 2009 2010 2011 (in million €) REBIT&ROCE 359 355 146 343 416 370 410 17.8% 18.6%17.5% 8.1% 19.6% 0 100 200 300 400 500 2007 2008 2009 2010 2011 2012e (in million €) REBITDA 471 467 263 469 553 520 560 0 100 200 300 400 500 600 2007 2008 2009 2010 2011 2012e (in million €)
    17. 17. 17 Financial and investment summary Capex 153 216 191 172 213 0 100 200 300 2007 2008 2009 2010 2011 2012e (in million €)
    18. 18. 18 Financial and investment summary Capex 153 216 191 172 213 0 100 200 300 2007 2008 2009 2010 2011 2012e (in million €)
    19. 19. Social & environmental progress
    20. 20. 20 Great place to work Zero Accidents Initiatives underway to further promote safety culture at Umicore eg Umicore Safety Awards / Site recognition (3-years & 5-years). 2011 safety performance: LTA up from 56 to 60. Severity rate improved. Occupational exposure reduction First year of benchmarking performance against aggregated individual biomarker readings. People development Deployment plans are being put in place to ensure that all employees receive an annual appraisal to discuss individual development (in 2011 87% of us received such an appraisal) Preferred employer The Group focus will be on increasing the satisfaction scores of all employees to reach the high level recorded for managers in the 2010 People Survey 
    21. 21. 21 Eco-efficiency Reduce carbon footprint We have reduced emissions by 14% vs 2006 (for comparable scope of activity). Energy audits are being implemented at the sites with the highest emissions. Emission reduction We have already achieved reductions in the impact of our metal emissions of 31% (to water) and 39% (to air) vs 2009 (target is -20% by 2015) Product sustainability R&D and EHS have introduced an internal tool to assess product/services sustainability, the tool is being tested together with the Business Units
    22. 22. 22 Stakeholder engagement Sustainable procurement Intense supplier screening was conducted for most non raw materials suppliers in 2011. Focus in 2012 will be on business units screening of raw materials suppliers Local community Community engagement was stepped up in 2011. More than half of all sites have a structured engagement plan. Our community donations reached a record level in 2011 of €1.75 million, including  disaster relief following Japanese tsunami and tornadoes in Oklahoma and Alabama. A new three year partnership has been started with UNICEF.
    23. 23. Umicore in the driver’s seat
    24. 24. 24 World automotive production outlook by region Car production 0 10 20 30 40 50 60 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Umicore estimate based on external data sources [M vehicles] Middle East/ Africa South America South Asia China Car production 0 10 20 30 40 50 60 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Umicore estimate based on external data sources [M vehicles] Japan/ Korea North America Europe Established Markets Emerging Markets Source: Umicore estimates based on external databases
    25. 25. 25 World automotive production scenarios by drivetrain Scenario 1 60 70 80 90 100 110 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Umicore estimate based on external data sources [M vehicles] Scenario 3 60 70 80 90 100 110 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Umicore estimate based on external data sources [M vehicles] 0 0 Source: Umicore estimate based on external data sources Electric Vehicle (EV) PHEV (Plug-in Hybrid Electric Vehicle) HEV (Hybrid Electric Vehicles) ICE(Internal Combustion Engine-powered vehicle)
    26. 26. 26 EU 2050 CO2 roadmap
    27. 27. 27 Reduction targets exist in most regions 95 Europe -38%154 152 USA -37% 240 109 Japan -23%141 145 China -22%185 Source: Continental (2011) CO2 emission targets for passenger vehicles [g/km] 130 181 125 167 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020 actual proposed enacted estimated
    28. 28. 28 Different engine configurations will be needed to reach the 2050 goals 100 50 150 0 0 400 600200 800 1000 1200 1400 CO2 emission [g/km] Range [km] ICE diesel ICE gasoline PHEV FCEV BEV 2010 2050 2010 2050 2010 2050 2010 2050 2010 2050 EU 2015 target EU 2020 target ICE Internal Combustion Engine-powered vehicle BEV Battery-powered Electric Vehicle HEV Hybrid Electric Vehicle PHEV Plug-in Hybrid Electric Vehicle FCEV Fuel Cell-powered Electric Vehicle Source:A portfolio of power-trains for Europe: A fact-based analysis (EU coalition study 2010)
    29. 29. 29 Umicore’s product offer covers all powertrain possibilities ICE HEV PHEV EV Normal Start-stop Mild Full Parallel system Range extender BEV FCEV Emissio n control catalyst Relative size +++ +++ +++ ++ ++ + No emission control catalyst Relative complexity + + + ++ +++ + Battery Relative size + + ++ ++ +++ ++ Relative complexity + ++ +++ ++ ++ ++ Fuel cell No fuel cell +++
    30. 30. 31 Global leadership position Regional positions Market leader (#1 or #2 position) Smaller player (distant #3) Circles indicative of 2011 light duty vehicle production volumes (≠ catalyst revenues) Automotive Catalysts NorthNorth AmericaAmerica EuropeEurope ChinaChina KoreaKorea SouthSouth AmericaAmerica JapanJapan IndiaIndia RussiaRussia AustraliaAustralia
    31. 31. 32 Automotive Catalysts Umicore has built a leading position in light duty catalysis – especially for complex engine types including hybrid vehicles Complexity set to increase further: NOx after- treatment, gasoline particulate filters, hydrocarbon traps etc Umicore has specific expertise in catalysis for alternative fuels Ongoing positioning in HDD and steady stream of contract wins Catalyst requirements are becoming ever more complex
    32. 32. 33 Rechargeable battery materials Extensive product and IP portfolio: LCO, NMC, LFP Broad production footprint close to customer base Strong track record in rapid production upscaling Automotive industry TS16949 quality standard Already present on more than a dozen electrified automotive platforms The Cheonan plant has been expanding rapidly to meet customer demand Li-ion cathode production 2000 2005 2010 2011 2012 Umicore figures(estimate for 2012) [tonnages]
    33. 33. 34 Fuel Cells Umicore Precious Metals Chemistry produces electrocatalysts Solvicore JV develops membrane electrode assemblies (MEAs) Umicore focus is long term and increasingly on automotive applications A fuel cell future would require a combination of catalyst and battery materials know-how: ideal for Umicore Recycling would also be essential: a fuel cell contains 10-20g of Pt vs 3g for an automotive catalyst
    34. 34. 35 Recycling Umicore is unique in its recycling capabilities relating to the sustainable powertrain roadmap • Automotive catalysts  • Batteries  • Fuel cells  Tightening legislation eg ELV and Battery Directives in EU Materials scarcity and traceability are also becoming drivers in the recycling landscape (eg REE) Umicore’s battery pre-processing line in Hanau
    35. 35. 36 Umicore is in the driver’s seat Automotive catalysts Battery materials Fuel cell materials Recycling
    36. 36. 37 Umicore is in the driver’s seat Automotive catalysts Battery materials Fuel cell materials Recycling ICE
    37. 37. 38 Umicore is in the driver’s seat Automotive catalysts Battery materials Fuel cell materials Recycling HEV
    38. 38. 39 Umicore is in the driver’s seat Automotive catalysts Battery materials Fuel cell materials Recycling BEV
    39. 39. 40 Umicore is in the driver’s seat Automotive catalysts Battery materials Fuel cell materials Recycling FCEV
    40. 40. 42 Forward-looking statements This presentation contains forward-looking information that involves risks and uncertainties, including statements about Umicore’s plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Umicore. Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. As a result, neither Umicore nor any other person assumes any responsibility for the accuracy of these forward-looking statements.

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