Umicore Materials June, 2014 Agenda

Introduction to Umicore

Umicore Rechargeable Battery Materials

Li-Ion Battery market trends Introduction to Umicore

• We are a global materials & company

• Our mission is to make “materials for a better life”

• The majority of our growth comes from clean :

 technologies that are specifically designed to optimize the use of natural resources and to reduce environmental impact

• We are listed on NYSE / with a market capitalization of some € 4 billion

3 Umicore, global leader in …

Automotive catalysts for passenger cars

Key materials for rechargeable batteries used in portable and hybrid & electric cars

Germanium substrates and other materials which are used in new photovoltaic technologies

Recycling precious from old mobile phones, laptops, electronic and spent catalyst material

4 Umicore’s business approach

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

5 Key megatrends for Umicore

Resource scarcity More stringent emission control

Renewable energy Electrification of the automobile 6 Umicore in figures

2013

Turnover € 9.8 bn

Revenues € 2.4 bn

REBIT € 304 m

REBITDA € 463 m

ROCE 13.6%

EPS € 1.96 / share

Dividend € 1.00 / share

7 Umicore Group structure

8 Agenda

Introduction to Umicore

Umicore Rechargeable Battery Materials

Li-Ion Battery market trends Umicore Rechargeable Battery Materials Fact Sheet

2014

Market Share 1 out of 5 batteries ever made contains Umicore material

15+ xEV platforms on the market in the next years

Track Record >60.000mT cathode material produced (accumulated)

>15 years in the market

Production 5 production sites (KR, JP, CN, BE)

TS16949, ISO9001, ISO14001

Portfolio Cathode: LCO, NMC, NCA, LFP

All Power/Energy ratios covered

R&D 3 R&D sites, 2 application labs

50% products sold are less than 3 years on the market

10 Umicore Global Li-ion Battery Setup Close to the (end-)customer

Worldwide activities in rechargeable battery materials

Research & Development Customer Teams • • Precursor and Product • Dedicated teams R&D (KR, JP, BE) • Sales & Marketing • Group R&D (BE) • Applied Technology in EU, US, KR, JP, CN, TW

Applied Technology Production

• Battery Lab (KR, JP) • Precursor and Product in KR, CN, JP, BE

11 Umicore’s unique experience

RBM has produced enough cathode materials to:

Provide a smartphone to every Power more than 1Million EV´s person on this planet

12 Umicore’s position in the LIB Value Chain Stable supply is key for our customers

• Strong application focused cathode material producer fully integrated for strategic raw material supply, including recycling

13 Agenda

Introduction to Umicore

Umicore Rechargeable Battery Materials

Li-Ion Battery market trends Li-Ion Battery market trends (1)

• LIB-production quite volatile over the year  Portable electronics : device launches create erratic demand pattern  Automotive : strong fluctuations but gradually growing  Cylindrical cell business seems under stress except for the Tesla-business  Polymer >> Prismatic > Cylindrical  Structural overcapacity creates unhealthy price erosion at cell makers

• Gap between high-tech segment and mainstream/low end increasing  High-tech segment : thin and flex form factor, high capacity, high power  Top cell performance = combination of high-tech material solutions  Low end is threatened by high technology solutions (4 x 3.2Ah iso 6 x 2.2Ah)

16 Li-Ion Battery market trends (2)

• New and growing LIB-applications are numerous :  Mobile dataloggers, gardening tools, DIY-tools, boost power, medical equipment, autonomous workstations, data transmission, 12V- and 48V-car systems, grid frequency regulation, back-up power, peakshaving, e-bikes,…  Personal mobile connectivity (smart phones, phablets, tablets,…)

• Declining applications exist as well :  PC shipments decline significantly and so does 18650 demand  Low feature phone shipments decline

• Automotive : diversification !  From Start-Stop to full Electric Vehicle  From 18650, over large CYL and POL all the way to +30Ah Prismatic  From LFP, over LMO/NCA all the way to NMC

1716 Specific priorities for different market segments

Electronics Power Tools Automotive ESS

Design cycle < 1yr < 1yr 2-4yr 1-2yr

P/E Low High Low to High High

Cost Medium-High High Medium Low-Medium

Cathode LCO-NMC NMC-LMO NMC-LMO LFP-NMC

• Electronics : Wh/L, safety and low swelling • Power Tools : W/kg, safety, fast charging • Automotive : Wh/L + US$/kWh OR W/kg @ -20°C + US$ • ESS : TCO per cycle, over 15yr horizon

1817 Portable electronics More … in less …

LCO NMC-family

Electrochemical performance (Wh/g) Physical density (g/cc)

Strictly Confidential 19 Automotive Gen.2 towards lower $/kWh Through higher performance or lower cost

Two parallel paths depending on company knowhow and strategy

LiNiO2 Higher Ni content Lower Co content Pushes energy density Reduces cost • Increase kWh/kg • Decrease cost/kg • Maintaining cost/kg • Maintaining kWh/kg ⇒ Decreases cost/kWh Cellcore® MX ⇒ Decreases cost/kWh NMC (1:1:1)

LiCoO2 LiMnO2 Cost/kWh NMC (1:1:1) 100% Low Co 75% - 80% High Ni 75% - 80%

20 Understanding ESS specific requirements

4*15 minutes of cycling 1 cycle per day * 250 days per year * 250 days/year = 1 000 cycles per year = 250 cycles per year Frequency regulation, Load Leveling, PV, Windmills Arbitrage 15 min – 1 hour storage 4-8 hours storage

~20 times per year ~20 times per year Discharge frequency Discharge Power quality, Capacity Credit, Primary reserve Energy Back-up 15 min – 1 hour storage 4-8 hours storage Charge -

(Minutes) Storage duration (Hours) 20 Umicore Rechargeable Battery Materials Summary • Umicore Rechargeable Battery Materials serves a fast growing market with a broad product portfolio

• Different market segments call for different product solutions and market segments are in a different stage of market development

 Portable Electronics will remain the biggest LIB-application in next years

 Use Li-ion in Automotive application is steadily growing and is expected to occupy a significant portion of the total material market towards the end of the decade

 ESS application is the newest market segment but has also the potential to grow significantly as a result of increased renewable power generation and decentralized power generation

16 Thank you !