HobokenHoboken sitesite visitvisit 55 SeptemberSeptember 20122012 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 3 Umicore’s business approach We transform metals into hi-tech materials Application We use application know-how to create know-how tailor-made solutions in close collaboration with our customers Chemistry material Material Metals Material science We close the loop and secure supply by solutions solutions Metallurgy recycling production scrap and end-of-life materials We aim to minimize our environmental Recycling impact and be the best employer and neighbour 4 Umicore in figures Key financials for H1 2012 Global positioning at end 2011 Turnover €6.9 bn 14,572 77 15 people industrial sites R&D/technical Revenues €1.2 bn centres Recurring EBIT € 192 m 7,635 ROCE 17.4% 34 866 7 R&D € 87 m 11 3,251 3 24 Capex € 95 m 4 Gearing ratio 12.5% 1,195 Market cap. € 4.5 bn* 5 1 1,625 Recurring EPS € 1.31/share 3 Interim € 0.50/share Dividend * at 03/09/2012 excluding treasury shares 5 Umicore’s business groups Recycling Catalysis • We operate a unique recycling process to • We develop technologies to treat deal with complex industrial residues and automotive emissions end-of-life materials • The business is driven by increasingly • The business is driven by materials scarcity stringent emission norms to promote clean and recycling legislation air Performance Materials Energy Materials • We produce a range of essential materials • We develop materials which enable the and chemicals based on precious metals clean production and storage of energy and zinc • The business is driven by the demand for • Diverse applications, such as high-purity clean, low-carbon energy solutions glass, construction, pharma, electrics/electronics 6 Organised in decentralised business units Rechargeable Energy Zinc Performance Battery Chemicals Materials Materials Materials Thin Electro- Building Technical Electro- Film Optic Products Materials plating Products Materials Cobalt & Platinum Specialty Engineered Materials Materials Precious Precious Precious Metals Metals Metals Refining Management Chemistry Jewellery & Battery Automotive Industrial Recycling Recycling Catalysts Catalysis Metals 8 Strategy based on clear focus on key development areas • Key growth areas responding to global megatrends • Innovation as a differentiator for success in all areas Potential to achieve average annual double digit growth between now and 2015/2020 in the business groups Catalysis, Energy Materials and Recycling • Growth will not be equal over all activities • Growth will not be linear • Growth will not be pursued at the expense of value creation Goal to generate an average ROCE of 15%+ between now and 2015 Performance-based environmental and social objectives 10 Sustainability objectives for 2011-2015 Economic We aim to achieve double digit revenue growth and our goal is to Growth and returns performance generate an average return on capital employed of more than 15% Zero lost time accidents We aim to have ZERO lost time accidents Occupational exposure We will reduce the body concentrations of specific metals to which our Great place reduction employees have an exposure: Cd, Pb, Co, Ni, As, Pt to work All employees will receive an annual appraisal to discuss individual People development development We will target our actions based on the results of the 2010 People Preferred employer Survey We aim to reduce our CO emissions by 20% vs 2006 levels and based Reduce carbon footprint 2 on 2006 industrial scope Eco- We aim to reduce by 20% the impact of metal emissions to water and Emission reduction efficiency air vs 2009 levels We will invest in tools to better understand and measure the life Product sustainability cycles and impacts of our products We will implement the new Sustainable Procurement Charter Sustainable procurement Stakeholder throughout our business engagement All our sites will be expected to make further steps in identifying key Local community stakeholders and engaging with the local community 11 Growth strategy based on key megatrends Resource scarcity More stringent emission control Renewable energy Electrification of the automobile 12 Umicore well aligned with key megatrends Resource scarcity More stringent emission control Market position Market position Umicore is the largest recycler of precious metals, Umicore provides catalysts for 1 out of 3 cars in able to recycle more than 20 different metals the world as well as for trucks & non-road vehicles Growth opportunity Growth opportunity Expand recycling through UHT technology Expand autocat activity into new segments Renewable energy Electrification of the automobile Market position Market position Umicore supplies key innovative materials for Umicore is a leading producer of key materials for high-efficiency solar cells and other photovoltaic rechargeable batteries for po rtable electronics applications Growth opportunity Growth opportunity Develop Umicore’s presence in PV materials Expand battery materials activity into (H)EVs 13 AgAg AuAu IndustrialIndustrial PtPt PdPd RhRh RuRu IrIr residuesresidues BusinessBusiness groupgroup InIn SeSe TeTe SnSn BiBi CuCu PbPb NiNi CoCo SbSb End-of-lifeEnd-of-life CeCe LaLa PrPr NdNd materialsmaterials AsAs SS RecyclingRecycling Business group Recycling Business group offering recycling services for complex and precious metals containing raw materials, considered as a world leader in the recycling of precious metals • Recovery of 26 metals* including precious metals (gold, silver, platinum, ..), minor metals (selenium, indium, …) and base metals (lead, copper, …) • Main feed materials are by-products of the non-ferrous metals industry, jewellery industry, spent automotive and industrial catalysts and electronic scrap (including rechargeable batteries) • Service offering of hedging, leasing, purchasing and sale of precious metals Growth driven by scarcity of raw materials and tightening waste legislation Precious Precious Jewellery & Battery Metals Metals Industrial Recycling Refining Management Metals * 24 metals in the business group Recycling and 2 in the other business groups 17 Business group Recycling Business units Precious Metals Refining Battery Recycling • Largest and most complex precious metals • Proprietary new UHT technology for the recycling operation in the world treatment of spent rechargeable batteries • Proprietary processes mastering a complex • Business driven primarily by the feed with the highest degree of flexibility electrification of the automobile • Efficient recovery of 17 different metals • Unique and clean process Jewellery & Industrial Metals Precious Metals Management • Leading provider of Ag and Au materials for • Superior precious metals management jewellery and industrial applications service to Umicore’s BUs and customers • Closed loop offering including recycling of • Proprietary trading, within strict risk control high-value scraps & sweeps parameters • This offering makes a strong fit with the • Marketing precious metal bars/ingots for Recycling segment investment 18 Business Group Recycling 2012 H1 figures Revenues 800 Key figures H1 H1 637 (in million €) 600 2011 2012 506 508 327 427 400 255 252 Revenues 309.8 342.0 +10.4% 204 342 200 310 Recurring EBITDA 153.6 144.6 -5.9% 253 254 222 0 (in € Recurring EBIT 132.9 121.9 -8.3% million) 2008 2009 2010 2011 2012 EBIT 137.7 114.3 -17.0% 300 267 R&D 6.1 9.9 +62.3% 250 202 134 195 Capex 27.7 26.6 -4.0% 200 93 106 150 118 REBIT margin 42.9% 35.6% -7.3% 100 133 52 ROCE 65.1% 83.3% +18.2% 122 95 50 102 66 0 Recurring EBIT J H1 J H2 19 Recycling Business drivers and impact on Umicore Resource scarcity Increasing metal prices Supply limitations vs growing demand Eco-efficiency Increasing need for recycling Reduce eco impact of metal supply Increasing need for Legislation & business ethics eco-efficient refining Material complexity Increasing need for refining/ More different metals in smaller % recycling of complex feed With its unique competences Umicore is ideally positioned to answer the Above trends positively impact above themes Umicore’s profitability 20 PreciousPrecious MetalsMetals RefiningRefining Precious Metals Refining At a glance Largest and most complex precious metals recycling operation in the world Processes around 350,000 tonnes/year of more than 200 different types of raw materials • Wide range of complex precious metals bearing materials • Efficient recovery of 18 different metals • Focus on high added value processes (throughput time, efficiency) Applying world class environmental and quality standards 25 Production configuration Maxton Hoboken USA Belgium • Autocat collection & pre- • Headquarters processing • R&D centre • All metals refining • Sampling & assaying • Autocat collection & pre- Guarulhos processing Brazil • Smelting & pre- processing of Au, Ag & Bangkok Thailand PGM containing materials • Au refining • Sampling & assaying • Autocat collection & pre- processing • Autocat collection & pre- processing Total headcount end of June 2010: 1469 people 26 Position in the market End-of-life materials Production scrap Ores & SMELTERS Refined Products MINES concentrates & REFINERS metals INDUSTRY e.g. computers CONSUMERS Complex Smelting Complex