2013 half year results

Transcription

1 213 half year results

2 Highlights Revenue evolution pointing to a stabilisation in many end-markets Revenues stable versus H1 212 Revenues up 4% versus H2 212 Profitability affected by product and regional mix and lower metal prices Recurring EBITDA down 1% Recurring EBIT down 15% Commitment to growth programmes unchanged Positive cashflows leading to further net debt reduction Interim dividend of.5 / share 2

3 Outlook Guidance maintained 213 Recurring EBIT expected in 3 33 million range 3

4 Revenue evolution pointing to stabilisation in many end-markets Revenues 1,25 1, 75 1, (in million ) 987 1,13 1,147 1,177 1,241 1,187 1,233 Revenues stable versus H1 212 Volume growth in Catalysis and Energy Materials compensating for negative impact of lower metal prices on Recycling 5 25 H1 28 H2 28 H1 29 H2 29 H1 21 H2 21 H1 211 H2 211 H1 212 H2 212 H1 213 Revenues up 4% versus H2 212 Volume growth in Catalysis, Energy Materials and Performance Materials partly offset by negative impact of lower metal prices on Recycling H1 H2 Restated for discontinued operations in 28 4

5 Margins affected by mix effects and lower metal prices Recurring EBIT 25 (in million ) Recurring EBITDA down 1% H H H1 29 H1 97 H2 29 H H H H2 211 H1 212 H2 181 H H1 213 Less favourable product and regional mix Lower metal prices affecting recycling margins Recurring EBIT down 15% Higher depreciation charges, linked to growth programmes Performance starting to benefit from cost reduction measures, mostly in Energy Materials ROCE at 14.5% Restated for discontinued operations in 28 5

6 Commitment to growth projects unchanged R&D expenditure R&D expenditure stable Focus on both product and process development Corresponds to 6.8% of revenues (in million) H H H H H H H H H H H Growth capex on track Large capacity expansions in Rechargeable Battery Materials On-going expansion in Catalysis and Recycling Capex 6 H1 H2 Restated in 24, 26 and 28 for discontinued operations in following year R&D restated for scope adjustment in 21

7 Safety performance improving Safety Safety performance improved Accident frequency rate at 2.7 Accident severity rate at Safety initiatives in place, aiming at further progresses and addressing behavioural aspects H1 213 Accident frequency rate Accident severity rate 7

8 Workforce evolution People 18, 16, 14, 12, 1, 8, 15,413 5,334 1,79 13,72 4,45 9,315 14,386 4,828 9,558 14,572 4,48 1,164 14,438 4,42 1,396 14,28 3,997 1,283 Workforce decreased 113 in consolidated businesses, mainly in Energy Materials 45 in associates, mainly in Element Six Abrasives 6, 4, 2, Umicore is adapting its organisation in response to changes in the market H1 213 Streamlining production footprint Consolidation of activities on certain sites Fully consolidated Associates Stepping out of certain product lines Restated for discontinued operations in 24, 26 and 28 8

9 Business review 213

10 Catalysis 213 H1 figures (in million) Revenues H1 28 H2 28 H1 29 H2 29 H1 21 H2 21 H1 211 H2 211 H1 212 H2 212 H Recurring EBIT Revenues up 3% due to volume growth and effect of Umicore Shokubai consolidation more than offsetting lower pass-through costs Recurring EBIT down 9% due to product and regional mix in Automotive Catalysts Further decline of overall car production and diesel market share in Europe. Umicore slightly outperformed market. Underperformance in growing North American market as Japanese OEM gained market share Outperformance in all principal Asian markets (China, South Korea, Japan) Product mix shifts in Precious Metals Chemistry H1 H2 1

11 Catalysis Continued investments in light duty automotive, Ready for Euro 6 in light duty Capacity and capability expansion in Bad Säckingen, Germany RAMPING UP Strengthening production capabilities in Korea New production line in Onsan, Korea END 213 Building position in growing Indian market Production facility under construction in Pune, India MID 214 Enhancing technology service offering to customers worldwide New technology development centre near Nagoya, Japan END 213 New technology centre in Americana, Brazil END

12 Catalysis heavy duty diesel and chemical catalysis HDD market Dedicated SCR line for HDD under construction in Suzhou, China H1 214 Dedicated HDD line in Florange, France IN QUALIFICATION Second HDD line in Florange under construction H1 214 Precious Metals Chemistry expansion in North America New plant in Tulsa, Oklahoma H

13 Energy Materials 213 H1 figures (in million) Revenues H1 28 H2 28 H1 29 H2 29 H1 21 H2 21 H1 211 H2 211 H1 212 H2 212 H Recurring EBIT H1 H Revenues up 9% due to higher sales of cathode materials EBIT down vs H1 212, but recovering vs H2 mainly as a result of cost reduction measures Higher sales volumes in Rechargeable Battery Materials driven by demand for high-end portable electronics; automotive demand growing, albeit from a small base Revenue growth in Cobalt & Specialty Materials due to higher refining and recycling volumes, whereas margins affected by product mix Further weakening of most end-markets of Electro-Optic Materials Revenue increase for Thin Film Products driven by uplift in display industry 13

14 Energy Materials Expanding production capabilities in growth areas Investments in Rechargeable Battery Materials to keep pace with demand NMC cathode material capacity expansion in Cheonan, South Korea COMPLETED Greenfield for NMC precursors under construction in Cheonan H2 213 Expansion of NMC cathode production in Jiangmen, China H2 213 Expansion of Cobalt & Specialty Materials in Olen, Belgium Expansion of Ni refining and recycling plant H1 214 Upgrade of fine Co powders facility H

15 Performance Materials 213 H1 figures (in million) Revenues H1 28 H2 28 H1 29 H2 29 H1 21 H2 21 H1 211 H2 211 H1 212 H2 212 H Recurring EBIT Revenues and recurring EBIT down vs H1 212 but up sequentially Sales volumes in Building Products down due to recession in the construction sector and harsh winter conditions at the start of the year Revenues slightly up in Zinc Chemicals with growing product demand; lower availability of Zn residues impacted recycling and refining activity Stable revenues in Technical Materials and Platinum Engineered Materials Continued growth in Electroplating, further benefiting from the successful introduction of new products 15 H1 H2 Lower contribution from Element Six Abrasives, affected by weaker end markets

16 Performance Materials Selective investments on-going Investments for Zn powder and oxide production in Asia Capacity expansion for Zn oxides in Goa, India H2 213 New plant for Zn powders in Changsha, China 215 Building Products focus on more advanced products Construction of surface-treatment plant in Viviez, France, on schedule H1 214 Consolidating research activities in Element Six Abrasives Global synthetic diamond innovation centre near Oxford, UK, opened COMPLETED 16

17 Recycling 213 H1 figures 4 Revenues Revenues down 1% and recurring EBIT down 16% due to impact of lower metal prices (in million) H1 28 H2 28 H1 29 H2 29 H1 21 H2 21 H1 211 H2 211 H1 212 H2 212 H Recurring EBIT 13 Precious Metals Refining performance reflecting: Impact of lower received metal prices, esp. specialty metals Higher processed volumes following technical improvements Higher intake of residues from non-ferrous metal industries more than offsetting decrease in end-of-life materials Lower Au prices caused lower availability of recycling residues in Jewellery & Industrial Metals Lower contribution from Precious Metals Management due to lower overall physical deliveries of precious metals New contract wins in Battery Recycling H1 H2 17

18 Recycling Growth investments continue Debottlenecking investments in Hoboken New biological water treatment plant reaching completion H2 213 Enhanced gas cleaning equipment on lead operations being installed H nd phase of upgrade and expansion of sampling facility started H2 214 Adding recycling capabilities in Jewellery & Industrial Metals Expansion of Ag recycling in Bangkok, Thailand COMPLETED Expansion of Ag recycling in Pforzheim, Germany

19 213 half year financials

20 Non-recurring elements Non-recurring items H1 (in million ) 213 Restructuring charges & provisions (11.1) Environmental charges & provisions (7.8) Impairments on metal inventory (1.) Other (2.8) Non-recurring EBIT (22.8) Non-recurring tax result 2.3 Non-recurring minority result.1 Net non-recurring result (2.6) Net IAS 39 effect (4.9) Total impact on net result (25.5) Non-recurring EBIT of -23 million Restructuring charges mainly in Element Six Abrasives Additional environmental provisions Total impact on net result of -26 million About half of the amount is non-cash 2

21 Strong cashflows Net operating cashflow H1 28 H2 28 H1 29 H2 29 H1 21 H2 21 H1 211 H2 211 H1 212 H2 212 H1 213 (in million ) H1 H2 21 Net cashflow before financing H1 28 H2 28 H1 29 H2 29 H1 21 H2 21 H1 211 H2 211 H1 212 H2 212 H (in million ) H1 H2

22 Positive cashflows further reduced net debt Net financial debt evolution (in million ) Net debt 31/ Capex -15 Taxes Net debt 3/ Dividends -25 Operating cashflow Share buybacks Other Operating cashflow excludes changes in working capital ( 1 million) 22

23 Strong capital structure maintained Net financial debt Debt ratios 4 (in million ) 25% % 2% 19% % 13% % 11% 11% 1% % % H H1 213 Gearing ratio (debt / debt+equity) Average net debt / recurring EBITDA End of year Restated for discontinued operations in 24 Restated for discontinued operations in 24 Restated for discontinued operations in 24 23

24 EPS, dividend and share buyback Recurring EPS EPS reflecting lower EBIT Interim dividend of.5 / share. H1 28 H2 28 H1 29 H2 29 H1 21 H2 21 H1 211 H2 211 H1 212 H2 212 H1 213 (in million) Dividend interim dividend Share buybacks 758,311 shares bought back in 213 Representing.6% of shares Currently holding 7.2% in treasury Dividend 24

25 Wrap-up

26 Wrap-up Revenue evolution indicating stabilisation in many end-markets Profitability affected by shift in product and regional mix and lower metal prices Commitment to longer term growth programmes maintained Cashflows remain well positive 213 recurring EBIT guidance unchanged 26

27 Financial calendar 2/9/213 Ex interim dividend trading date 4/9/213 Interim dividend record date 5/9/213 Interim dividend payment date 23/1/ Q3 trading update 6/2/ results publication 29/4/ Q1 trading update 29/4/214 Annual General Meeting 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. 27

28 Investor Relations Geoffroy Raskin Evelien Goovaerts