2. 2013 Q3 highlights
Revenues stable: growth in Catalysis, Energy Materials and Performance
Materials offset by lower revenues in Recycling, due to lower metal prices
Preferred option chosen for further expansion of the Precious Metal Refining
activities
Investments in other long term growth programs on track
Continued focus on cost reduction measures to mitigate the effects of adverse
market conditions in certain business units
Strong free cashflows and further net debt reduction, including buy backs and
interim dividend payout
2
3. 2013 full year outlook
Umicore confirms it expects its full year recurring EBIT to be within
the previously stated range of between € 300 million and € 330
million, albeit at the lower end of the range due to the more
testing metal price environment
3
4. 2013 Q3 business review
Catalysis
Energy Materials
Revenues up 7%
Revenues up 16%
Global car production was up 3 %. The
consolidation of Umicore Shokubai meant
that Umicore’s Automotive Catalysts
revenues outpaced the car market
Cobalt & Specialty Materials revenues up
due to increased recycling activities and
higher sales in ceramics and chemicals
• Modest growth in stabilizing European
market
• Somewhat slower-than-market growth in
North America
• Overall growth in other regions largely in
line with car production
Revenues were down in Precious Metals
Chemistry, with lower premiums and a less
favourable product mix more than
offsetting higher sales volumes
4
Increased revenues for Electro-Optic
Materials with an increase in optics more
than offsetting lower substrates volumes
Higher revenues and volumes for
Rechargeable Battery Materials, mainly
driven by high-end portable electronics
Revenues for Thin Film Products driven by
higher demand for large area coating
applications
5. 2013 Q3 business review
Performance Materials
Recycling
Revenues up 2 %
Revenues down 20%
Building Products’ revenues picked up slightly
Revenues down for Precious Metals
Refining
Revenues in Electroplating were down
compared to a strong quarter last year
Revenues in Platinum Engineered Materials
benefited from higher concentration of orders
from the glass industry
Somewhat lower volumes and revenues in
Technical Materials
Slightly higher revenues in Zinc Chemicals
despite a lower contribution from the recycling
activities
Higher revenues and an improved product mix
in Element Six Abrasives
5
• Impact of lower metal prices and lower
volumes
• Higher availability of industrial residues,
stable for end of life materials
Revenues in Jewellery & Industrial Metals
down mainly due to recycling volumes
Despite a high volatility, Precious Metals
Management reported lower revenues
Further enhancements of processes in
Battery Recycling
6. Ongoing investments for long term growth
Several investments were commissioned in Q3:
• Opening of a new technology centre for automotive catalysts in Brazil
• First HDD line in Florange, France, now fully operational
• Expansion of NMC cathode production in Jiangmen, China, completed
All other announced investments are progressing according to plan
6
6
8. Investment plans for Hoboken
Umicore has carried out an extensive assessment of options for
a further expansion of its Precious Metals Refining activities as
part of its Vision 2015 growth strategy for Recycling
Preferred option at this stage is a 40% expansion of the
Hoboken capacity, incorporating recent technology
developments
This would involve a € 100 million investment over a period of
two years
The project is subject to final Board approval and engagement
underway with authorities for permit
8
8
9. Profiling of the Hoboken recycling plant
Largest and most complex precious metals refining
operation in the world
Au Pd Se
Ir
Cu
Ru
Ag
Rh
Te
Pb
In
• Complexity: highest recovery yield on the most complex
residues in the shortest throughput time
Ni
• Flexibility: 200 different types of raw material
Pt
As
Sb
Bi Sn
Proprietary processes mastering a complex feed
with the highest degree of flexibility and reliability
• Reliability: world-leading sampling & assaying
Advantages:
•
•
9
Synergy with existing facility, staff and know-how
Builds on a proven business model
10. Strategic drivers
Long term market trends are supportive towards the availability of
complex raw materials:
•
•
Depletion of mines leads to deterioration of ore quality
•
10
Sustained metal demand through continued global development
Processing of complex ores yields ever more complex by-products
11. Investments in the process
Raw Materials
Water Treatment
Sampling and Assaying
Gas Cleaning
Precious Metals Operations
Base Metals Operations
Pb-slag
SO2
Sulphuric
Acid
Plant
Smelter
Cu-matte
Blast
Furnace
Pb-bullion
Cu-bullion
Ni-speiss
Leaching &
Electro
winning
Ag
residue
Lead
Refinery
PM-residues
Nickel
Refinery
OLEN
H2SO4
11
PMresidues
Ni, As
Cu
Precious
Metals
Refinery
Ag, Au, Pt, Pd, Rh, Ir, Ru
In-Te-residue
Seresidue
Special
Metals
Refinery
In, Se, Te
Pb, Bi, Sb, Sn
Slag
12. Investments in the process: Late nineties
Raw Materials
Water Treatment
Sampling and Assaying
Gas Cleaning
Precious Metals Operations
Sulphuric
Acid
Plant
Base Metals Operations
Smelter
Leaching &
Electro
winning
H2SO4
12
Ni, As
Cu
Lead
Refinery
Precious
Metals
Refinery
Nickel
Refinery
OLEN
Blast
Furnace
Special
Metals
Refinery
Ag, Au, Pt, Pd, Rh, Ir, Ru
In, Se, Te
Pb, Bi, Sb, Sn
Slag
13. Investments in the process: Mid 2000s
Raw Materials
Water Treatment
Sampling and Assaying
Gas Cleaning
Precious Metals Operations
Sulphuric
Acid
Plant
Base Metals Operations
Smelter
Leaching &
Electro
winning
H2SO4
13
Ni, As
Cu
Lead
Refinery
Precious
Metals
Refinery
Nickel
Refinery
OLEN
Blast
Furnace
Special
Metals
Refinery
Ag, Au, Pt, Pd, Rh, Ir, Ru
In, Se, Te
Pb, Bi, Sb, Sn
Slag
14. Investments in the process: Most recent
Raw Materials
Water Treatment
Sampling and Assaying
Gas Cleaning
Precious Metals Operations
Sulphuric
Acid
Plant
Base Metals Operations
Smelter
Leaching &
Electro
winning
H2SO4
14
Ni, As
Cu
Lead
Refinery
Precious
Metals
Refinery
Nickel
Refinery
OLEN
Blast
Furnace
Special
Metals
Refinery
Ag, Au, Pt, Pd, Rh, Ir, Ru
In, Se, Te
Pb, Bi, Sb, Sn
Slag
15. Investments in the process: 2014 - 2015
Raw Materials
Water Treatment
Sampling and Assaying
Gas Cleaning
Precious Metals Operations
Sulphuric
Acid
Plant
Base Metals Operations
Smelter
Leaching &
Electro
winning
H2SO4
15
Ni, As
Cu
Lead
Refinery
Precious
Metals
Refinery
Nickel
Refinery
OLEN
Blast
Furnace
Special
Metals
Refinery
Ag, Au, Pt, Pd, Rh, Ir, Ru
In, Se, Te
Pb, Bi, Sb, Sn
Slag
16. Creating value
•
Ramp-up and EBIT accretion to start in 2016
•
Returns to exceed cost of capital shortly thereafter
•
Continued excellence in environmental performance
16
16
17. Additional growth opportunities in Recycling
•
Further enhancement of capabilities of Hoboken site
•
The pursuit of opportunities in new markets
•
Continued development of the battery recycling
activities
17
18. Financial calendar
06/02/2014
2013 results
29/04/2014
AGM
29/04/2014
2014 Q1 trading update
31/07/2014
Half year results 2014
23/10/2014
2014 Q3 trading update
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 forwardlooking statements.
18