3030 MarchMarch 20102010 OlenOlen sitesite visit,visit, AdvancedAdvanced MaterialsMaterials && GroupGroup R&DR&D presentationpresentation Olen site visit Agenda of the day 11:30 Introduction on Umicore, the Olen site and Advanced Materials 11:45 Cobalt & Specialty Materials, with focus on rechargeable batteries 12:15 Sandwich lunch 13:00 Electro-Optic Materials, with focus on CPV 13:30 Site visit of Electro-Optic Materials Olen 14:15 Coffee break 14:30 Group R&D 15:00 Site visit of Group R&D Olen 15:45 End Umicore today Our business approach Application know-how Chemistry material Material Metals Material science solutions solutions Metallurgy Recycling 3 Umicore today Strategic focus on Clean technologies Energy Recycling Environmental solutions solutions solutions MaterialsMaterials forfor energyenergy AddressingAddressing resourceresource storage and scarcity and emissions TechnologiesTechnologies toto storage and scarcity and emissions mitigatemitigate environmentalenvironmental sustainablesustainable energyenergy byby closingclosing thethe impacts productionproduction materialsmaterials looploop impacts CleanClean technologiestechnologies inin UmicoreUmicore today represent today represent •• 50%50% ofof revenuesrevenues 4 •• 80%80% ofof R&DR&D eexpensesxpenses Umicore today A change in the business profile Revenues 14.6% (in million €) 2,500 2124 1902 1919 1910 11.1% 2,000 10.5% 1725 10.2% 8.7% 8.4% 1,500 1358 8.0% 1723 7.2% 1036 1,000 7.0% 6.9% JJ Core Umicore 5.7% 5.8% 5.4% JJ Divested business 4.8% 500 -- Capex / revenues 3.2% - 2.5% --- R&D / revenues 0 2002 2003 2004 2005 2006 2007 2008 2009 Capital intensive R&D intensive Core Umicore Discontinued Umicore R&D / revenues Capex / revenues Metal refiner Materials technology company Restated for discontinued operations in 2004, 2006 and 2008 5 Umicore today Worldwide presence North America Europe • 744 (18) people • 7,342 (980) people • 12 industrial sites • 38 (7) industrial sites South America Asia/Pacific • 1,097 (416) people • 3,025 (1,739) people • 5 (1) industrial sites Africa • 22 (6) industrial sites • 1,512 (1,252) people Total headcount 13,720 people • 3 (1) industrial sites (of which 4,405 in associates) 6 OlenOlen sitesite Presence in Belgium Hoboken # 1,358 Olen # 1,037 • Precious Metals Refining • Cobalt & Specialty Materials • Battery Recycling • Electro-Optic Materials • Group R&D Brugge # 69 Overpelt # 57 • Cobalt & Specialty Materials • Zinc Chemicals 2,963 people Vilvoorde # 41 (of which 62 in associates) Heusden Zolder # 97 (62) • Building Products • Zinc Chemicals Brussels # 199 Angleur # 105 • Corporate • Cobalt & Specialty Materials • Zinc Chemicals 8 A history of transformation 1800 1850 1900 1950 2000 2010 1853 Asturienne des Mines 1985 1805 Vieille-Montagne 1989 Cie des Métaux d’Overpelt 1928 1970 Cie Industrielle Union 1908 Soc. Générale Métallurgique de Hoboken MHO 1989 Usine de Désargentation 1887 1919 (Degussa) 2005 Traxys 1919 Société Générale de Minerais 1985 2005 Cumerio 1959 Mechim 1989 2007 Nyrstar 1906 Union Minière du Haut-Katanga 1981 Union Minière 1981 1901 ACEC UM 2001 1919 SIBEKA 1990 1873 Degussa (DM) DMC² PMG 2003 Olen before • One of Umicore’s oldest sites • Inaugurated in 1912 • 2nd site of “Compagnie Industrielle Union”, later named “Société Générale Metallurgique de Hoboken” • Multiple metals processed • Cobalt , germanium, nickel (still today) • Copper (now part of Aurubis) • Sodium, radium and uranium (discontinued many years ago) 10 Olen today • One of Umicore’s 3 large production sites • 1,027 employees • Headquarters of • Cobalt & Specialty Materials • Electro-Optic Materials • Umicore Group R&D • Environmental control • Seveso status • ISO 14001 certified 11 OpticsOptics GeGe AdvancedAdvanced BatteriesBatteries CoCo NiNi PhotovoltaicsPhotovoltaics PigmentsPigments CC MaterialsMaterials ToolsTools Advanced Materials At a glance • Leading global position in cathode materials for lithium–ion batteries, cobalt powders for hard metal applications, germanium substrates for space solar cells • Produces high-purity metals, alloys, compounds and engineered products for a wide range of other specialist applications • Industrial operations around the world, supplying a global market • Synthetic diamond and super-abrasives activities are conducted in a joint venture with De Beers CobaltCobalt && Electro-Electro- ElementElement SpecialtySpecialty OpticOptic ThinThin FilmFilm SixSix MaterialsMaterials MaterialsMaterials ProductsProducts AbrasivesAbrasives 13 Business group and business unit structure UmicoreUmicore AdvancedAdvanced PreciousPrecious MetalsMetals PreciousPrecious MetalsMetals ZincZinc MaterialsMaterials ProductsProducts && CatalystsCatalysts ServicesServices SpecialtiesSpecialties CobaltCobalt && SpecialtySpecialty AutomotiveAutomotive JewelleryJewellery && PreciousPrecious MetalsMetals BuildingBuilding MaterialsMaterials CatalystsCatalysts ElectroplatingElectroplating RefiningRefining ProductsProducts Electro-OpticElectro-Optic TechnicalTechnical PreciousPrecious MetalsMetals ZincZinc MaterialsMaterials MaterialsMaterials ManagementManagement ChemicalsChemicals ThinThin FilmFilm PlatinumPlatinum EngineeredEngineered BatteryBattery ProductsProducts MaterialsMaterials RecyclingRecycling ElementElement SixSix PreciousPrecious MetalsMetals AbrasivesAbrasives (40%)(40%) ChemistryChemistry 14 Advanced Materials Key figures Revenues Recurring EBIT 24.7% (in € million) (in million €) 500 125 20.9% 395 400 100 85 332 15.4% 15.2% 309 305 14.7% 287 13.9% 300 275 75 13.1% 62 59 71 213 221 50 53 200 50 31 4.8% 100 25 22 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2002 2003 2004 2005 2006 2007 2008 2009 Return on Capital Employed (ROCE) 15 Business group breakdown Revenues EBIT Capital employed (excluding metal) (recurring) (average) AM ZS AM ZS ZS 11% 15% 18% 16% 16% AM 26% PMPC 17% PMS 10% PMS 21% PMS PMPC PMPC 56% 46% 48% J AM Advanced Materials J PMPC Precious Metals Products & Catalysts J PMS Precious Metals Services Corporate not included J ZSCorporate Zinc Specialties not included Corporate not included Excluding Corporate 16 Business group breakdown Capital expenditure R&D expenditure Workforce (end of period) AM C C C 12% ZS 8% AM ZS12% 8% 9% 27% 3% ZS 16% AM PMS 38% 5% PMS PMS 24% 11% PMPC PMPC PMPC 27% 32% 68% J AM Advanced Materials J PMPC Precious Metals Products & Catalysts J PMS Precious Metals Services Corporate not included J ZSCorporate Zinc Specialties not included Corporate not included J CCorporate 17 Olen site visit Agenda of the day 11:30 Introduction on Umicore, the Olen site and Advanced Materials 11:45 Cobalt & Specialty Materials, with focus on rechargeable batteries 12:15 Sandwich lunch 13:00 Electro-Optic Materials, with focus on CPV 13:30 Site visit of Electro-Optic Materials Olen 14:15 Coffee break 14:30 Group R&D 15:00 Site visit of Group R&D Olen 15:45 End BusinessBusiness unitunit CobaltCobalt && SpecialtySpecialty MaterialsMaterials RechargeableRechargeable ToolTool CeramicsCeramics && BatteriesBatteries MaterialsMaterials ChemicalsChemicals Cobalt & Specialty Materials At a glance • Leading player in cobalt applications with niche positions in nickel • Rechargeable Battery Materials: technology solutions for lithium ion cathode materials • Ceramics and Chemicals: chemical specialties with a particular focus on REACH compliance • Tool Materials: product range for hard metal and diamond tools • Offers supply security through own refining, recycling, metals management and ethical sourcing policy • Global footprint with worldwide distribution channels • Largest BU in Advanced Materials 20 Cobalt & Specialty Materials Footprint: # 2,270 people (of which 1,232 in associates) Olen Cheonan Belgium # 447 Korea # 129 • Headquarters • Cathode materials • R&D centre • Tech Center RBM • Co & Ni chemicals • Co powders Shanghai • Co & Ni refining China # 43 • Co powders Brugge Belgium # 69 Gangzhou • Organic Co & other China # (874) metal compounds GYHU (40% associate) • Other organics • Co chemicals • Co refining Fort Saskatchewan Canada # 27 Jiangmen • Ultrafine Co powders China # 449 (340) • Cathode materials Arab Blodelsheim Milan Subic • Battery precursors USA # 52 France # 12 Italy # 16 (15) Philippines # 81 • Co & Ni chemicals • Cu clippings Todini (40% associate) • Ni specialities JCU (40% associate) (crystals & solution) • Distribution • Co & Ni products • Ni refining • Ni(OH)2 • Co recycling distribution • Ni refining 21 Cobalt & Specialty Materials Business model Co & Ni Cathode Rechargeable cathode precursors materials battery industry Co Co oxides / Specialty Chemicals & concentrates Ni & Co salts chemicals ceramics industry Co & Ni containing Co Alloyed Tooling secondaries powders powders industry Co & Ni metal & Add value to the metal Co & Ni compounds refining/recycling Market leader Diversified in niche Focus on the application supply strategy applications 22 Cobalt & Specialty Materials Cobalt sourcing & usage • Umicore offers the broadest range of Global applications of cobalt cobalt-based materials Hardfacing 7% Magnets 7% Batteries 22% • Focus on sustainable supply: Long-term contracts and respecting Code of Conduct Superalloys 20% • Differentiated supply strategy Cutting Tools 13% • Refining of Co concentrates and recycling of production scrap and end of life materials Others 3% • Purchase of Co metal & compounds Carboxylates 9% Colours 10% Catalysts 9% • Metal price hedging is key Umicore presence 23 Cobalt & Specialty Materials Tool Materials products & applications Supply Metal