Introducing Umicore

Meeting with the EMIS delegation

Florange September 21 th , 2016

1 Who we are A global materials technology and recycling group

One of three global A leading supplier of key The world’s leading leaders in emission control materials for rechargeable recycler of complex waste catalysts for light-duty and batteries used in portable streams containing heavy-duty vehicles and electronics and hybrid & precious and other for all fuel types electric cars valuable metals

Introducing Umicore 2 Our Group structure

ENERGY & SURFACE CATALYSIS RECYCLING TECHNOLOGIES

Automotive Catalysts Jewellery & Industrial Metals Cobalt & Specialty Materials Precious Metals Chemistry Platinum Engineered Materials Electroplating Precious Metals Management Electro-Optic Materials Precious Metals Refining Rechargeable Battery Materials Technical Materials Thin Film Products

Introducing Umicore 3 Our foundations

Unique business Industry leader in Uniquemodel business Supportive Industrysustainability leader in model megatrends sustainability

application know-how resource scarcity more Chemistry stringent material material metals science solutions emission metallurgy control

electrification recycling of the automobile

Introducing Umicore 4 Our strategy

By 2020 we have…

clear leadership in turned sustainability clean mobility into a greater materials and recycling competitive edge

Introducing Umicore 5 Unique position in clean mobility materials

ICE Emission control catalysts

6 Unique position in recycling

LONG LOOP SHORT Unique technologies LOOP for treating complex Recycling services residues and for customer by-products production scrap and residues

Further leverage Umicore’s leadership Leverage the profitable in closed loop solutions for customers expansion to 500kt in Hoboken

Introducing Umicore 7 Turning sustainability into a greater competitive edge

We have transformed Umicore into a sustainability leader over the past 15 years

The purpose is to generate more concrete benefits from our sustainability efforts eg:

Introducing Umicore 8 Global presence: 10,429 people, 66 manufacturing sites

North America Europe

857 6,694 people people 11 29 industrial sites industrial sites

South America Asia / Pacific

692 1,877 people Africa people 4 20 industrial sites 309 industrial sites people 2 industrial sites

Figures exclude associated companies (December 2015) Introducing Umicore 9 Key figures 2015

Revenues REBITDA Recurring EPS € 2.6 bn € 505 m € 2.27 /share

REVENUES BY RESOURCE GEOGRAPHY EFFICIENCY 2% 20% 2015 24% End-of-life Europe ò ò materials North America ò Secondary 48% 51% ò materials 5% South America ò Primary ò Asia-Pacific materials 32% ò 18% Africa ò

Introducing Umicore 10 Strong commitment to innovation

R&D spend € 145 m R&D 15% FOCUS

5.5% of revenues Combined Horizon invested in R&D 2020 clean mobility ò 15% and recycling

Horizon 2020 other ò Focus on clean

mobility and recycling 70% Post Horizon 2020 and other ò

520 patent families, 46 patents filed in 2015

Introducing Umicore 11 Our strategic ambitions are supported by

Strong Unique Strategic Solid financial commitment to business model positioning structure innovation

Clear leadership in Turn sustainability clean mobility into a greater materials and recycling competitive edge

Introducing Umicore 12 Automotive Catalysts

13 Automotive Catalysts (AC)

Business model: At AC we develop technologies which allow our customers to meet automotive emission legislation at the lowest Total Cost of Ownership

Complete catalyst systems to reduce Customer exhaust gas emissions focus

People Operational Engagement excellence

Global Manufacturing and Technical Footprint

One of three world leaders

14 A committed team . . .

>2000 employees >400 employees R&D cost >6% of worldwide dedicated to R&D Revenue (ex PGM)

. . . with strong customer focus!

15 Global footprint 16 plants in 13 countries, 8 R&D / test centers in 6 countries

Florange Rheinfelden Bad Säckingen Hanau Karlskoga Nowa Ruda France Germany Germany Germany Sweden Poland

Burlington Ansan Songdo Canada Korea Korea

Auburn Hills USA Onsan Korea

Tulsa USA Tokoname Japan

Americana Brazil Himeji Japan

Production plant Suzhou Production plant China Under construction R&D/Technology R&D/Technology Port Elizabeth Pune Rayong development center development center South Africa India Thailand Under construction Production plant & R&D/ Technology development center

16 Global position in Light Duty Vehicles and Heavy Duty Diesel

LDV HDD

• Broad technology portfolio addressing all • Broad technology portfolio for On-Road and emission control needs of gasoline and Non-Road diesel engines

• Global R&D and test center footprint • Global R&D and test center footprint supporting running and future business

• Established for more than 30 years • Comparative newcomer

• Global production footprint • Production footprint in relevant regions

• Solid track record with major global OEM’s • Contract wins with regional and global players

• Strong presence in all regions • Solid market position in Europe, South America, Korea and China

17 Light and heavy duty market segments set to grow

LDV Production by Region HDD Production by Region

CAGR: 2.9% CAGR: 5.8%

Europe/Africa Japan/Korea South America Source: IHS, KGP and Umicore assumptions Greater China North/America South Asia

18 Tightening legislation A key driver for strong growth

LDV: 8 legislation changes HDD On-Road: 13 legislative between 2015 – 2020 changes with tighter standards beyond 2015 • Advanced markets :

• CO 2 (fuel efficiency), Particulate Number and Real Driving Emission standards are main driver for new after-treatment HDD Non-Road 4 legislative system solutions changes . . . • Emerging markets: Introduction of EU4/5 standards . . . providing opportunities for AC to position new technical solutions and win market share

19 LDV emission legislation roadmap

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

USA Tier 2 Tier 3

USA (CARB) LEV II LEV III

EU Euro 5c Euro 6b Euro 6c

Russia Euro 3 Euro 4 Euro 5

Japan Japan 2009

China - National C3 C4 C5 C6

China - Beijing Beijing 4 Beijing 5 Beijing 6 Draft (Gasoline only) India - National BS II BS III BS IV BS VI

India - Cities BS III BS IV (24 cities) BS IV (50-70 cities) BS VI

S Korea (Gasoline) LEV II LEV III (not officially decided)

S Korea (Diesel) Euro 5 Euro 6

Indonesia Euro 2 Euro 4

Thailand Euro 3 Euro 4

PL6+ (GPF & 160kkm Durability) Brazil PL 5 PL 6 Not official decided Argentina Euro 4 Euro 5

20 EU emission legislation roadmap Legislation drives complexity

Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Emission Euro 6c Euro 5 Euro 6b standards Euro 6d TEMP Euro 6d

Real Driving Development and NTE-Limit – Conformity Factor (CF) Emissions measurement phase CF1 NOx : 2.1 CF2 NOx : 1.0+margin (0.5)*

CO 2 130 g/km 95 g/km target 100% fleet 100% fleet

Significant change in RDE

Notes : and CO 2 requirements • Other requirements include NEDC/WLTC, On Board Diagnostic • Scenario based on European Commission press release October 22, 2015 • CF: Not confirmed by final regulation

• All dates: New type approval PC / * subject of annual review and revision

21 Emission legislation in Europe CO, HC, NOx for Light Duty Diesel (LDD)

NOx

HC+NOx

EU 1 und EU 2 adjusted to NEDC w/o 40s CO idling (ACEA correlation factors)

22 Emission legislation in Europe CO, HC, NOx for Light Duty Diesel (LDD)

NOx

HC+NOx

EU 1 und EU 2 adjusted to NEDC w/o 40s CO idling (ACEA correlation factors)

23 Emission legislation in Europe CO, HC, NOx for Light Duty Diesel (LDD)

NOx

HC+NOx

EU 1 und EU 2 adjusted to NEDC w/o 40s CO idling (ACEA correlation factors)

24 Emission legislation in Europe CO, HC, NOx for Light Duty Diesel (LDD)

NOx

HC+NOx

EU 1 und EU 2 adjusted to NEDC w/o 40s CO idling (ACEA correlation factors)

25 Emission legislation in Europe CO, HC, NOx for Light Duty Diesel (LDD)

NOx

HC+NOx

EU 1 und EU 2 adjusted to NEDC w/o 40s CO idling (ACEA correlation factors)

26 Emission legislation in Europe CO, HC, NOx for Light Duty Diesel (LDD)

NOx

HC+NOx

EU 1 und EU 2 adjusted to NEDC w/o 40s CO idling (ACEA correlation factors)

27 Exhaust systems for light-duty diesel cars

Euro 1-3 Euro 4+5 Euro 6b Euro 6d

HC/CO conversion + particulate after-treatment + NOx after-treatment + real driving emissions

DOC DOC cDPF NSC cDPF

DOC SDPF

DOC cDPF SCR

Complexity increases NSC SDPF

NSC cDPF SCR

28 Exhaust systems for light-duty gasoline cars

Euro 1-6b Euro 6c

HC/CO/NOx after-treatment + particulate control + real driving emissions

TWC TWC

TWC TWC cGPF

TWC cGPF

TWC cGPF

29 Real driving emissions (RDE)

Portable Emission Measurement Systems (PEMS) Emissions to be measured: • NOx, • CO (without binding NTE limit), • Particulate Number (PN),

• CO 2

30 Real driving emissions (RDE) Most important boundary conditions

Trip sequence: Altitude: ⅓ urban-⅓ rural-⅓ motorway moderate < 700m min. 16km each extended < 1300m

Speed: max. 145 km/h urban: 0-60 km/h Temperature: ° rural: 60-90 km/h moderate: 0 - 30 C ° motorway: 90-145 km/h extended: -7 - 30 C

Cold start phase: Trip duration: T > 70 °C 90 – 120 min. cooling water but limited to 5 min.

31 Commission´s timeline* and Conformity Factors Decision timeline 07/2015 01/2016 07/2016 01/2017

1st package 2nd package 3rd package 4th package

• RDE procedure • CF 1 and CF 2 for NOx • CFs for PN • in service conformity V V • cold start regulation (ISC)

*planned adoption date

NOx • CF1: 2.1 (moderate); +60% (extended) ** • CF2: 1.0+margin (0.5) *** (moderate); +60% (extended) ** • to be achieved for the complete trip and separately for the urban part ** moderate and extended refers to ambient conditions (temperature and altitude) *** annual review and revision starting in 2017 with the objective to reach CF 1.0 not later than in 2023 (0 ≤ x ≤ 0.5)

Introduction timeline 2017 2018 2019 2020 2021

CF1: 2,1 CF1: 2,1 CF2: 1,5 CF2: 1,5 TA: Type Approval new TA new cars new TA new cars

32 CO2 targets and emissions 2014 performance of the top-selling EU passenger car manufacturers

180 10% market share 160 2015 Volkswagen BMW target line 140 Fiat (incl. Chrysler) Renault-Nissan Ford -27% 120 GM Daimler Average 100 PSA Toyota 2020 target line

80 emission in in g/km emission 2

CO 60

40

20

Source: ICCT - “CO 2 emissions from new passenger cars in the EU: Car manufacturers’ performance in 2014” - published July 2015 0 1100 1200 1300 1400 1500 1600 1700 fleet average vehicle weight in kg

33 Gasoline dominates LDV market

LDV Engine Production by Fuel Type

120 CAGR: 29.2% 100 22 21 21 21 Million Million Vehicles 19 20 80 18 18 19 CAGR: 1.7%

60 CAGR: 2.7% 40 78 79 81 83 68 69 71 74 76

20 CAGR: 2.8%

0 2014 2015 2016 2017 2018 2019 2020 2021 2022

GAS Alternative Fuels (CNG, LPG) Source: IHS, August 2015 DIESEL Electric + Fuel Cell

34 Diesel essential for compliance with CO2 and fuel efficiency requirements

20 – 25% more fuel efficient and 15% Euro 6b diesel engines Clean diesel cars less CO 2 than (clean diesel) remove (Euro 6c – stage 2) are equivalent gasoline 99.9% of number of as clean as equivalent cars particulates gasoline cars

Diesel key in reaching CO 2 targets

35 HDD emission legislation roadmap

HDD 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Europe EU V EU VI a,b EU VI c

North America EPA10 GHG Regulation, Phase 1 GHG Regulation, Phase 2

Japan JP 09 JP 16

South Korea EU V EU VI EUVIc?

Brazil EU III EU V EU VI ?

Russia EU III EU IV EU V

India (Main Cities) BS IV BS V

India (Nationwide) BS III BS IV BS V

China (Beijing) Beijing IV Beijing V EU VI ?

China (Nationwide) CN III CN IV CN V

NRMM 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Stage Europe Stage IIIb Stage IV StageV IIa

North America Tier 3b Tier 4a Tier 4b

Japan Tier 3b Tier 4a Tier 4b

South Korea Tier 3b Tier 4a Tier 4b

Brazil Tier 3a Tier 3b Tier 4a ?

36 Exhaust systems for heavy duty diesel cars

Euro IV/V Euro VI

HC/CO/NOx after-treatment + particulate after-treatment + real driving emissions partially particulate control

DOC SCR ASC DOC cDPF SCR ASC

DOC PFF* SCR ASC

*Partial Flow filter (open filter device)

37 Rechargeable Battery Materials

38 A close fit with megatrends

Transportation: fuel-based towards Megatrends electricity-based

Electricity generation: increasing share from non-fossil sources resource scarcity (wind, sun, bio, hydro,…) more stringent emission Metal-based functional control materials enable electrification recyclability of the automobile

39 A leading player in the industry

Market Umicore

characteristics offering

A broad spectrum of metal- • Li-ion battery technology is based materials used in Li-ion established reference for batteries portables and automotive applications Umicore is a leading cathode material supplier with a large industrial footprint. We have produced enough cathode materials to: • Cathode material is important to performance and cost of a Li-ion Provide a smartphone to every battery person on the planet Power more than 1 million EVs

Technology leadership and a proven quality track record combined with a strong application know-how are key for business success

40 A global presence

R&D and Industrialization

• Product R&D (KR, JP, BE) • Process Development (BE, KR) • Engineering (KR)

Operations Customer Teams • LCO, NMC (KR,PRC) • LFP (BE) • Dedicated teams • ISO9001/14001/18001 • Sales & Marketing • TS16949 • Applied Technology • in EU, US, KR, JP, Application PRC, TW Technology

• Battery Lab (KR, JP, BE) Total RBM workforce: approx. 500 people

41 Unique integration in the value chain

Raw material Metal Product Application End use

Portable electronics

Recycling & intermediates Power tools

(P) HEV / Li-ion residues EV rechargeable batteries

E-bikes

residues Stationary power

Umicore occupies a unique position in the value chain guaranteeing high speed to market, supply security, and responsiveness to customer needs

42 Unique industrialization capabilities

Two decades of market Process innovation fuels presence in cathode productivity improvements materials for Li-ion batteries while maintaining highest quality standards (stringent automotive standards) Established industrial footprint close to the customer Integrated process flows Strong industrialization with guaranteed access to capabilities building on critical raw materials historical Umicore key allows an agile market competences approach

43 Supportive market conditions Base case

Rechargeable 400 battery market ( GWh ) Portable Societal driver

Electrification Regulatory driver 200

Energy Storage System Regulatory driver 0 2015 2020 2025

The main growth driver will be vehicle electrification

44 Exciting upside potential High case

Rechargeable 400 battery market ( GWh ) Portable Societal driver

Electrification Regulatory driver 200

Energy Storage System Regulatory driver 0 2015 2020 2025

The main growth driver will be vehicle electrification

45 Market focus: Portables

• Main Li-ion market segment 5% today driving material 5% technology directions • Smart phone, tablet and 19 % notebook applications are the volume drivers in the electronics subsegment 71 % • Electric Power Two-Wheels is a new growth driver based on similar battery and material technologies

• Market growth rates Electronics Power tools stabilizing towards 4-6% p.a. E-PTW Other

46

46 Market focus: Electrified transport Total automotive production by drivetrain

5% • Market segment is very 5% pHEV / EV diverse (automotive, heavy 3% pHEV / EV duty, marine, aviation) 1% though near-term driven by automotive Micro HEV Micro HEV / HEV / HEV % • Car market continues 29 61 % on growth track

• Electrification roll-out geographically and ICE 70 % technologically diversified ICE 36 %

2015 2020

47

47 Market focus: Electrified transport

Segments Battery Size (kWh)

200 0.4 1 10 25 75 50 Micro HEV HEV pHEV EV medium EV long Delivery van E-bus

Understanding Li-ion Selecting most cost effective Expanding to small battery requirements for Li-ion battery system for a delivery vans, utility automotive subsegments given Power to Energy vehicles and e-buses requirement

48

48 Market focus: Electrified transport Share of automotive battery in 2020 in GWh • Aligning the right material technology and production % capacities with the specific 3 7% market demand profiles is crucial 21 % • Energy, more specifically ‘Cost of Energy’ ($/kWh), is a key driving 22 % force for material choices in Li- ion battery technology

• Additional user requirements 47 % determine material technology decisions (eg. fast charge capability, cold cranking,…)

Micro hybrid Full electric Hybrid E-bus Plug-in hybrid 49

49 Market focus: Energy Storage Systems

• Li-ion based storage systems serve only a niche segment • Industrial power grid connected systems offer the main opportunity • Increasing non-fossil electricity forces regulators to define ‘minimum’ connected electricity storage buffers to guarantee power grid stability • Reliability and long-term TCO form the value proposition • Technical requirements and market size do not require application specific material design optimization

50 Growth strategy 2015-2020

Establish technology- Maintain based leadership in leadership in xEV and continue Reach portable massive industrial sustainable applications expansion profitability

Cost leadership through economies of scale, process development, competitive sourcing (jointly with CSM) and operational excellence

51 Key takeaways

Li-ion is the technology Market demand remains of choice for portable and strong and transport automotive segments in electrification is the the coming decade main growth driver

• Excellent cathode materials Umicore is uniquely technology and freedom to operate positioned to capture • Production expertise and ability to this growth due to its scale up volumes customer proposition • Integrated supply chain

52 Rechargeable BatteryFlorange Materials Plant

53 Euro 6 SCR diesel exhaust line

The diesel Diesel Diesel Selective Oxidation Particulate Catalyst exhaust line Catalyst Filter Reduction

The oxidation The particulate filter The SCR catalyst catalyst (DOC) (DPF) removes fine and Adblue® converts the unburnt soot particles transform oxides of hydrocarbons (HC) nitrogen (NOx) into and carbon water and nitrogen monoxide (CO) to water (H2O) and carbon dioxide (CO2)

Euro 5

Euro 6 SCR

54 Markets and Technologies products at Florange

Diesel Diesel Selective Oxidation Particulate Catalyst Catalyst Filter Reduction

On-Road Heavy Duty Diesel Florange Florange Florange Off-Road Heavy Duty Diesel

Light Duty Other sites Other sites Florange Diesel Umicore Umicore

55 History and industrial transformation of the Florange site

2007 Acquisition by Umicore

The Florange site chosen as 2011 production site for Heavy Duty and SCR catalysts for the European market Euro 6

2012 Industrial transformation of the site: - Construction and startup of three 2015 production lines in place of the historic lines

56 The industrial transformation of the Florange site in images

2012 2013

2014 2014 57 A few figures...

• Staff levels: ~130 people (including temporary staff) • Organised into five teams (24/7/365) • Certifications: • ISO / TS 16949 • ISO 14001 • OHSAS 18001

58 Basic principles of the process (1)

1 PREPARATION of the WASHCOAT Put in suspension and milled 3

DRYING and CALCINATION

2 OVEN

COATING 59 Basic principles of the process (2)

WASHCOAT WASHCOAT preparation preparation A B

1st PASS OVEN 2nd PASS OVEN

60 Site plan

STORAGE STORAGE Raw materialsPK1 Finished products LINE 3 StorageStorage

Offices Washcoat Storage LINE 2 SCR New Lab - Cloakrooms / Staff LINE 1 Washcoat Lab Offices restaurant metals

61 Safety

• Last accident with production disrupted 29 January 2007 • Safety instructions for visits: • Safety glasses mandatory • Safety shoes recommended, but not mandatory, for visitors • Yellow jacket to be worn • Photography not allowed

62 Thank you

E-mail [email protected] [email protected]

Internet Site www.umicore.com

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