JewelleryJewellery && IndustrialIndustrial MetalsMetals Dietmar Becker – Senior Vice President Capital Markets Event on Recycling – 18-19 Nov 2010 Jewellery & Industrial Metals Provides gold, silver and other precious metals containing products to the jewellery sector and industrial applications Closed loop offering for precious metals products, refining and related supply services • Recycling of high-value scraps & sweeps Multi-regional business concept, strong in Europe and expanding worldwide • #1 gold and silver semi-finished products in Europe • #1 machined platinum alloy products for jewellery in Europe The business unit includes Allgemeine Gold & Silberscheideanstalt AG (listed company, 91% owned by Umicore) 2 Agenda • Business model • Key customer groups • Jewellery & Lifestyle • Industry • Business strategy 3 Business model Business model Leading supplier of precious metals and Application products for Jewellery and Industrial know-how Metals Customer vicinity and presence in Ag Au Life style relevant regional key markets Chemistry Jewellery material Material science Chemistry Pt Pd solutions Refining and supply services combined Metallurgy Electrical Cu with precious metals management Medical One-stop-shop PM cycle offering with complete customer service leading to Recycling competitive advantage 5 Business model Full product and service offering to multi-regional Recycling volume (indexed) markets offering 4 • Wide range of customized products 3 • Refining/Recycling services 2 • Analytical & Applied Tech services 1 0 Market leader in Europe in several segments with 2005 2006 2007 2008 2009 2010 growing business in Asia and North-America Au Ag Pt Strong supply advantage by recycling Product volume (indexed) 4 • 70-100% of Au 3 • 50% of Ag 2 • 40% of Pt 1 0 50% of all refining customers also buy products, 2005 2006 2007 2008 2009 2010 50% of delivered product volume comes back as Source: Umicore actuals & estimates recycling feed 6 People Pforzheim Amsterdam Germany # 357 Netherlands # 58 • Headquarters • Production • Refining/recycling • Production Vienna Austria # 93 • Production Toronto • Refining/recycling Canada # 58 • Production Foshan • Refining/recycling China # 31 • Refining/recycling • Production Manaus Bangkok Brazil # 12 Thailand # 56 • Production Total workforce : 651 people • Refining/recycling • Production 7 Key customer groups Key Customer Groups Jewellery & Industrial Metals Au Core competencies are built on know-how 5% • Precious metals metallurgy Jewellery • Chemistry Industry • Material science 95% • Customer service Main presence of gold in jewellery Ag and silver in industry segment 15% BU Jewellery & Industrial Metals gives access to the largest Jewellery segment of gold recycling Industry 85% Source: Umicore actuals 9 Recycling JewelleryJewellery scrapscrap Common GoldGold raw materials RecycledRecycled scrap,scrap, sweeps,sweeps, solutionssolutions Special Complex SilverSilver high-grade recycling recyclables residues SecondarySecondary materialsmaterials Complex PlatinumPlatinum raw materials PrimaryPrimary materialsmaterials PalladiumPalladium 10 Jewellery - Value Chain Supply Metal Product Application Market Art medals Private art collectors Medal / Coin blanks Local Goldsmiths Gold Jewellery industry Old jewellery Sheets, strips, plates, Lifestyle goods discs, tubes, rings, … Watches Silver Recycled scrap, sweeps, Sheets, wires solutions High-end jewellery Rings Platinum, Palladium Fine metals, alloys, solders Fashion jewellery Fashion products 11 Jewellery Market dynamics World jewellery fabrication volume declined Global gold consumption significantly in last decade driven by economy (in tonnes) and gold price development 4,000 3,000 Jewellery Off-shoring of low price segment jewellery 2,000 Industry producers to low-cost countries 1,000 Investment 0 Emerging jewellery markets in Far East along with 2000 2008 2009 economic development and individual Evolution gold jewellery consumption wealth increase 2.0 1.5 Traditional local/regional markets still important China 1.0 Global Top luxury brand segments remain strong 0.5 0.0 2000 2008 2009 Jewellery scrap recycling increased, offering Source: GFMS opportunities for Umicore 12 Jewellery Market position & approach Europe as successful home market • # 1 Au jewellery refining • # 1 Pt and Ag semi-finished products Recent investments in Asia (Thailand and China) and acquisitions (Canada) have complemented the growth of the business • Thailand has gained importance as manufacturing base for fashion jewellery (e.g. Pandora, Swarowski) • China is a growing market in both industrial and jewellery segment Well positioned at leading luxury brands Competitors: • Metalor, Other Swiss, Cookson, local Pforzheim companies, … 13 Industrial Metals – Value Chain Supply Metal Product Application Market Coins Investors, collectors Medal / Coin blanks Gold Medical equipment Medical device industry Sheets, strips, plates, Old jewellery discs, tubes, wires, solders, rings, … Electrical and PM Industrial Customers Silver fabrication Sputter targets, machined parts, evaporation Recycled scrap, sweeps, materials solutions High purity silicon Photovoltaic, producers, coating uses, Semiconductor, Platinum, Palladium Silver catalysts Fresh Ag granules Chemical, leather, Formaldehyde synthesis wood industries, … 14 Industrial Metals Market dynamics Overall significant growth of silver demand in Global Ag consumption (in tonnes) industrial fabrication and new energy technologies 15,000 Ongoing demand for coins as “safe haven” by 12,000 Jewellery Industry investors, with trend towards special alloys with 9,000 Photography les silver content to compensate for higher PM prices Silverware 6,000 Investment Demand for PM targets and silver anodes used in 3,000 surface technology expected to grow in line with GDP and poly-silicon industry recovery respectively 0 2000200820092010 Silver catalysts for use in the formaldehyde Source: GFMS + 2010 Umicore estimate industry, expected to grow according to GDP Increasing demand from automotive industry expected, with recent upswing in production Medical industry expected to continue on a steady growth path 15 Industrial Metals Market position & approach Europe remains of high relevance i.e. for high quality and technology; Umicore is # 1 for silver semi-finished products in Europe Industry and coins are the two main development and growth segments with China being a main growth market Industrial niche markets in PV, chemical and medical industry with organic growth opportunities Recycling and market knowhow and large manufacturing capability and capacity leads to competitive advantage over Metalor, Cookson and several local Pforzheim companies Source: GFMS 16 Business strategy Business strategy Europe is Umicore’s successful home market Strengthen and broaden current position by leveraging • Presence with top brand customers • Industrial opportunities in photovoltaic, chemical, electrical, automotive and medical industries • Expansion into other regions, in particular Asia and North America Pursuing front-end outsourcing opportunities Development of jewellery and industrial refining business (scrap, sweep) 18 Forward-looking statements This presentation contains forward-looking information that involves risks and uncertainties, including statements about Umicore’s plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Umicore. Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. As a result, neither Umicore nor any other person assumes any responsibility for the accuracy of these forward-looking statements. 19 Dietmar Becker Senior Vice President Jewellery & Industrial Metals Dietmar Becker holds a university degree in Economics and Organisational Sciences. He started working for Degussa AG – part of which was acquired by Umicore in 2003 - in 1988, heading a number of businesses in Germany as well as in Italy, prior to being appointed Senior Vice- President Technical Materials in 2007. He became Senior Vice-President of the newly created business unit Jewellery & Industrial Metals in 2010. 20.