Umicore in the driver s seat

Umicore in the driver s seat

Umicore, global leader in Automotive catalysts for passenger cars Key materials for rechargeable batteries used in portable electronics and hybrid & electric cars Germanium substrates and other materials which are used in new photovoltaic technologies Recycling precious metals from old mobile phones, laptops, electronic scrap and spent catalyst material 2

Umicore s business approach We transform metals into hi-tech materials We use application know-how to create tailor-made solutions in close collaboration with our customers We close the loop and secure supply by recycling production scrap and end-of-life materials Metals Application know-how Chemistry material Material science solutions Metallurgy Material solutions We aim to minimize our environmental impact and be the best employer and neighbour Recycling 3

Umicore 2011 in figures Key financials for 2011 Global positioning at end 2011 Turnover Revenues 14.5 G 2.3 G 14,572 people 77 industrial sites 15 R&D centres Recurring EBITDA 553 M Recurring EBIT 416 M ROCE 18.6% R&D 157 M Capex 213 M 866 11 3 7,635 34 7 3,251 24 4 Gearing ratio 13.4% Market cap. * ~4.2 G Recurring EPS 2.69/share 1,195 5 1 1,625 3 Dividend 1.00/share * at Q1 2012 excluding treasury shares 4

Umicore s business groups Recycling Energy Materials Catalysis Performance Materials Unique recycling process dealing with complex industrial residues and end-oflife materials Materials which enable the clean production and storage of lowcarbon energy Technology solutions to treat automotive emissions and other chemical processes Essential materials and chemicals based on precious metals and zinc for pharma, construction, electrical equipment, Business drivers Business drivers Business drivers Business drivers Materials scarcity Recycling legislation Energy efficiency New (H)EV vehicles Photovoltaic demand Demand for safer products Global emission legislation Emerging markets New applications (HDD) Industrial production Geographical expansion Eco-friendly products 5

Business group split for 2011 Revenues (excluding metal) EBIT (recurring) Capital employed (average) RE 27% CA 35% CA 19% RE 18% CA 34% EM 9% PM 21% EM 17% RE 58% PM 14% PM 28% EM 20% Corporate not included CA Catalysis EM Energy Materials PM Performance Materials RE Recycling Corporate excluding not Corporate included Corporate not included 6

Strong growth potential Recycling Energy Materials Catalysis Performance Materials Double digit growth (average over 2010-2015/2020) Based on key growth drivers aligned with market trends GDP growth High R&D High investments Many new applications/markets Lower R&D High investments Some new applications/markets Growth will not be linear and not equal over all activities Innovation as a differentiator for success in all areas Growth will not be pursued at the expense of value creation Goal to generate an average ROCE of 15-20% between now and 2015 7

Sustainability is essential Economic performance Great place to work Ecoefficiency Stakeholder engagement Growth and returns Zero lost time accidents Occupational exposure reduction People development Preferred employer Reduce carbon footprint Emission reduction Product sustainability Sustainable procurement Local community We aim to achieve double digit revenue growth and our goal is to generate an average return on capital employed of more than 15% We aim to have ZERO lost time accidents We will reduce the body concentrations of specific metals to which our employees have an exposure: Cd, Pb, Co, Ni, As, Pt All employees will receive an annual appraisal to discuss individual development We will target our actions based on the results of the 2010 People Survey We aim to reduce our CO 2 emissions by 20% vs 2006 levels and based on 2006 industrial scope We aim to reduce by 20% the impact of metal emissions to water and air vs 2009 levels We will invest in tools to better understand and measure the life cycles and impacts of our products We will implement the new Sustainable Procurement Charter throughout our business All our sites will be expected to make further steps in identifying key stakeholders and engaging with the local community 8

Strategic roadmap 2010-2012 2012-2015 2015 - Prepare Regain profitability of 2007-2008 Lay the foundations for exceptional growth initiatives, such as HDD Demonstrate the feasibility of others, such as UHT 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 9

Umicore in the driver s seat

CO 2 emissions targeted today EU CO 2 e emissions 6 5 [Gt/year] To reduce emission by 80% by 2050 serious efforts are necessary 4-80% 3 2 1 0-95% Road transport to improve substantially Accounts today for 15-20% of total To be reduced by 95% by 2050-1 1990 2010 2030 2050 2050 abated Road transport Air & sea transport Industry Power Waste Buildings Agriculture Forestry Source: www.roadmap2050.eu 11

CO 2 reduction targets for passenger vehicles exist in most regions CO 2 emission targets for passenger vehicles [g/km] Actual legislation Enacted legislation Proposed legislation 240-37% Estimated legislation 154-38% 152 130 95 181 141 125-23% 109 185 167-22% 145 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020 Europe USA Japan China Source: Continental (2011) 12

Challenging CO 2 emission targets pushes advanced engine configurations Advanced ICE configurations Electrification of the vehicle Down-sized turbo-charged gasoline Gasoline direct injection Lean burning gasoline engines Diesel (Flex fuel) Start-stop mechanism HEV: Mild HEV Full HEV PHEV: Parallel Range extender EV: BEV FCEV Requires more complex emission control catalyst solutions Requires larger battery and still automotive catalyst (except EV) ICE HEV Internal Combustion Engine-powered vehicle Hybrid Electric Vehicle PHEV EV Plug-in Hybrid Electric Vehicle Electric Vehicle BEV FCEV Battery-powered Electric Vehicle Fuel Cell-powered Electric Vehicle 13

Different engine configurations will be needed to reach the 2050 goals CO 2 emission [g/km] 150 100 2010 2010 PHEV 2010 ICE gasoline 2050 2010 ICE diesel 2050 2050 EU 2015 target EU 2020 target 50 2010 BEV FCEV 0 2050 2050 0 200 400 600 800 1000 1200 1400 ICE BEV HEV PHEV FCEV Internal Combustion Engine-powered vehicle Battery-powered Electric Vehicle Hybrid Electric Vehicle Plug-in Hybrid Electric Vehicle Fuel Cell-powered Electric Vehicle Source: A portfolio of power-trains for Europe: A fact-based analysis (EU coalition study 2010) Range [km] 14

Different scenarios indicate growth of electrification But ICE remains dominant in coming years Scenario 1 Scenario 3 CO 2 limits will be reached On top of meeting CO 2 limits, through ICE improvement and electrification there is also a positive TCO for consumers (OEM Scenario push only) 1 (OEM push Scenario + customer 3 pull) [M vehicles] [M vehicles] 110 110 100 100 90 90 80 80 70 70 0 0 60 60 2011 2012 2013 2014 2015 2016 2017 2018 2019 Electric Vehicle (EV) 2011 2012 2013 PHEV (Plug-in Hybrid Electric Vehicle) 2014 2015 2016 2017 2018 2019 HEV (Hybrid Electric Vehicles) 15 ICE (Internal Combustion Engine-powered vehicle) Source: Umicore estimate based on external data sources

What s in ICEs for Umicore? (Internal Combustion Engine-powered vehicles) Automotive Catalyst Increasing complexity with More stringent legislation Advanced ICE configurations Recycling Treating waste while recovering valuable metals Pt, Pd and Rh from automotive catalysts 16

What s in (P)HEVs for Umicore? ((Plug-in) Hybrid Electric Vehicles) Automotive Catalyst Increasing complexity with More stringent legislation Advanced ICE configurations On/off mode of engine Decreasing size with electrification level Rechargeable battery cathode material Increasing size with electrification level Complexity increases with size Recycling Treating waste while recovering valuable metals Pt, Pd and Rh from automotive catalysts Ni, Co, Cu (and REEs) from rechargeable batteries 17

What s in BEVs for Umicore? (Battery-powered Electric Vehicles) Rechargeable battery cathode material Larger size depending on requested driving range Complexity increases with size Recycling Treating waste while recovering valuable metals Ni, Co, Cu (and REEs) from rechargeable batteries 18

What s in FCEVs for Umicore? (Fuel Cell-powered Electric Vehicles) Fuel Cell membrane electrode assembly Increasing complexity with More stringent legislation Advanced ICE configurations Decreasing size with electrification level Rechargeable battery cathode material Large battery still needed in FCEV Recycling Treating waste while recovering valuable metals Pt from fuel cells Ni, Co, Cu (and REEs) from rechargeable batteries 19

Umicore s product offer covers all powertrain possibilities ICE HEV PHEV EV Normal Start-stop Mild Full Parallel system Range extender BEV FCEV Emission control catalyst Relative size +++ +++ +++ ++ ++ + Relative complexity + + + ++ +++ + No emission control catalyst Battery Relative size + + ++ ++ +++ ++ Relative complexity + ++ +++ ++ ++ ++ Fuel cell No fuel cell +++ 20

Automotive Catalysts Vehicle production is due to grow in emerging markets Established Car production Markets Emerging Car production Markets 60 [M vehicles] 60 [M vehicles] 50 50 40 40 30 30 20 20 10 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Japan/Korea Middle East/Africa North America South America South Asia Europe China Source: Umicore estimate based on external Source: data Umicore sources estimates based on external Source: databases Umicore estimate based on external data sources 21

Automotive Catalysts Toxic emissions legislation strengthening in most regions EU regulation EU inspired regulation US regulation Japanese regulation No regulation Legislation requires new catalyst solutions NO x abatement systems Gasoline Particulate Filters, 22

Automotive Catalysts Umicore s global footprint Burlington Canada Ansan Korea Auburn Hills USA Onsan Korea Tulsa USA Himeji Japan Americana Brazil Suzhou China Production plant R&D centre Florange France Rheinfelden Germany Port Elisabeth South Africa Hanau Germany Karlskoga Sweden 23

Automotive Catalysts Umicore s global leadership position in light duty Russia North America Europe China India Korea Japan Regional positions Market leader (#1 or #2 position) South America Australia Smaller player (distant #3) Circles indicative of 2011 light duty vehicle production volumes ( catalyst revenues) 24

Automotive Catalysts Automotive catalysts market set to grow Growing vehicle production with ICE More stringent emission legislation in all the major markets Complexity set to increase further (NO x after-treatment, GPFs, ) Umicore is a global leader for light duty applications Well positioned globally Strong position for complex engine types including diesel, hybrid vehicles, flex fuel, Umicore is continuing to invest in manufacturing and testing capabilities Catalyst requirements are becoming ever more complex Umicore is gradually gaining ground in HDD, supported by customer awards 25

Rechargeable Battery Materials Different scenarios indicate strong growth 16 14 Scenario 1 [M vehicles] Scenario 3 HEV - NiMH HEV - Li-Ion PHEV - Li-Ion EV - Li-ion 12 10 8 6 4 2 0 350,000 300,000 2011 2012 2015 2020 [tonnes] [tonnes] 2011 2012 2015 Portable electronics Energy storage systems Transportation Source: Umicore estimate based on external data sources 2020 250,000 200,000 150,000 100,000 50,000 26 0 Source: Umicore estimate based on external data sources Source: Umicore estimate based on external data sources

Rechargeable Battery Materials Different cathode materials with different properties Energy Power Safety* Life Cost LCO lithium cobaltite +++ +++ - ++ + LiCoO 2 LMO lithium manganese oxide - +++ ++ - ++ LiMnO 2 NMC nickel manganese cobalt ++ ++ ++ +++ +++ Li(Ni x Mn y Co 1-x-y )O 2 LFP lithium iron phosphate + +++ +++ ++ ++ LiFePO 4 * Impacts battery package design 27

Rechargeable Battery Materials Applications determine cathode materials used 1995 2005 2010 2015 Portable electronics LCO NMC Automotive Energy Storage Systems (ESS) NiMH LMO NMC Other (NaS, ) LFP LFP NMC 28

Rechargeable Battery Materials Umicore offering technology and production synergies 1995 2005 2010 2015 LCO Portable electronics NMC NiMH Automotive LMO NMC Energy Storage Systems (ESS) Umicore material & application Other (NaS, ) LFP LFP NMC 29

Rechargeable Battery Materials Umicore s global footprint Olen Belgium Cheonan Korea Engis Belgium Kobe Japan Hanau Germany Jiangmen China Production plant R&D centre 30

Rechargeable Battery Materials Li-ion battery application is growing rapidly Fast product turnover in portable electronics Penetration on-going in automotive Potential in energy storage systems Li-ion cathode production [tonnages] Applications drive cathode material development Umicore has leading position in Li-ion cathodes Broad production footprint close to customer base Broadest product portfolio covering the materials of choice for all current and future applications Significant synergies, on technology development and production setup Strong track record in rapid production upscaling Already present on more than a dozen electrified automotive platforms 2000 2005 2010 2011 2012 Umicore figures (estimate for 2012) 31

Fuel Cells Umicore s global footprint Hanau Germany Production plant R&D centre 32

Fuel Cells Fuel cells on the technology roadmap of most larger OEMs today, but remains long term A fuel cell future would require a combination of catalyst and battery materials know-how, which is ideal for Umicore Current development set-up Umicore produces electrocatalysts for fuel cells Solvicore JV (with Solvay) develops membrane electrode assemblies (MEAs), the heart of the fuel cell 33

Recycling Umicore s global footprint (for automotive parts) Olen Belgium Hanau Germany Hoboken Belgium Maxton USA Bangkok Thailand Recycling plant R&D centre Total workforce > 800 people Guarulhos Brazil 34

Recycling Umicore is unique in its recycling capabilities relating to the sustainable powertrain roadmap Automotive catalysts Batteries Fuel cells Other materials Tightening legislation will enforce vehicle recycling End-of-Life Vehicles (ELV) Directive Battery Directive Umicore s battery pre-processing line in Hanau Materials scarcity and traceability are also becoming drivers in the recycling landscape (eg PGMs, REEs) 35

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. 36