Environment and Resource Needs Impact Analysis Intent 3 Umicore 2.0 Clean mobility and recycling Umicore is a global materials technology and recycling group. Umicore dedicates its efforts to clean technologies, such as emission control catalysts, materials for Product Impact 3 3 Business Practices rechargeable batteries and recycling. Umicore’s ambition is to develop, produce 2.5 1.5 and recycle materials in a way that fulfils its mission: materials for a better life. Product Impact Intent Business Practices Umicore has high product impact in the context Umicore has undertaken a significant Challenges around safety appear to be at the Umicore of Positive Change holdings. The breadth and reorganisation of the business and has made more substantial end of things, albeit offset by depth of impact are both impressive and its significant investments to drive its strategy positives elsewhere, such as fully integrated criticality to a circular approach is likely to be for materials for the low carbon and circular sustainability across the business. increasingly important over time, particularly in economy. the context of electrification. Investment Case What challenge is the Climate change is the most significant challenge of our time and human activities are creating pollution Company tackling? in numerous forms from vehicle exhaust fumes to waste, to the detriment of land, sea and air. Umicore’s businesses aim to tackle vehicle emissions and resource scarcity, contributing to a circular economy. Reducing air pollution also helps to address healthcare challenges. The World Health Organisation Relevant Targets Relevant Products estimates that ambient air pollution causes 4 million premature deaths per year globally. Target 3.9 By 2030, substantially reduce the number of deaths Umicore’s catalysts are used in car exhaust systems to filter out and illnesses from hazardous chemicals and air, water and soil the toxic chemicals in the emissions. Is the Company’s Umicore has three core businesses: metal recycling, automotive catalysts and battery cathodes. pollution and contamination offering sufficiently Umicore runs the world’s biggest precious metal recycling plant, which reduces the amount of wastes different and better sent to landfills. It is one of the largest suppliers of automotive catalysts, which reduces air pollution than the status quo? from car exhausts. Umicore is also the leading manufacturer of battery cathode, a critical component for more environmentally friendly electricity vehicles. Target 11.6 By 2030, reduce the adverse per capita environmental Umicore’s recycling facilities process 200 different types of raw impact of cities, including by paying special attention to air quality materials and have an annual capacity of 350,000 tons. In addition, Is there a committed Thomas Leysen, the previous CEO and current Chairman, oversaw the complete transformation of and municipal and other waste management Umicore produces cathode materials which are used in the management team? Umicore from a miner / refiner to a materials business that aims to contribute to a more sustainable batteries of electric vehicles. What have they done future. Sustainability is now integrated into the company’s strategy and Umicore is committed to before? innovation. It’s at the forefront of battery cathode manufacturing and spends significant amount of sales on R&D. Mr Leysen is also Chairman of the King Baudouin Foundation – a Belgian charity whose mission is to contribute to a better society by being an actor for change and innovation. Target 12.4 By 2020, achieve the environmentally sound Umicore’s recycling and catalyst divisions help to reduce waste management of chemicals and all wastes throughout their life generation and release of chemicals into the air. How does the Company Umicore has sourced cobalt ethically since 2004 and is a good example of how acting sustainably pays cycle, in accordance with agreed international frameworks, and treat stakeholders? off in the long run, as more and more companies are placing stringent requirements on their supply significantly reduce their release to air, water and soil in order chain. Umicore was also part of the pioneering first wave of companies to publish an integrated annual to minimize their adverse impacts on human health and the report, back in 2006 and its disclosures are excellent both in context and data. With regards to environment employees, equal recruitment across the workplace is problematic however the fact that they are collecting data shows a thoughtfulness and commitment to getting it right. Target 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse Is there a potential to Metal recycling is a profitable business with high returns. Umicore’s competitive advantage comes from With reference to UN Framework Convention on Climate Change Umicore’s cathode materials are used in electric vehicles and create a profitable and scale, which enables it to recover greater amounts of materials. In automotive catalysts, competitive energy storage systems which help to reduce climate change defendable business? advantage comes from materials know-how and sticky customer relationships. For battery cathodes, impact on human activities. competitive advantage is still emerging but it’s likely to be based on a combination of technology, scale and relationships with automotive OEMs. Umicore is winning over 30% of all new contracts for automotive battery cathodes. In the long-term, Umicore could close-the-loop of the battery supply chain through recycling. Is the business The metal recycling and automotive catalysts business should continue to grow on the back of attractively valued? regulatory and consumer pressures for a cleaner environment. However, the growth prospects become truly exciting when we look at the battery cathode business. Today, the penetration of electric vehicles is only around 1% of global car sales. This is likely to increase significantly over the next decades which should translate to high growth rate for battery cathodes. Overall, Umicore’s revenue could grow at a mid-to high-teen pace over the next decade. For that, we are asked to pay 25x forward earnings, which seems attractive. Ref: 51288 INS PS 9241 This presentation is intended solely for the use of professional investors and should not be relied upon by any other person. It is not intended for use by retail clients. IMPORTANT INFORMATION AND RISK FACTORS Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised Important Information Japan Important Information South Korea Important Information Israel and regulated by the Financial Conduct Authority (FCA). 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