2. 2
Key growth drivers
Catalysis:
• Global legislation
• Emerging markets
• HDD
Performance Materials:
• Industrial production
• Geographical expansion
• Products with reduced
environmental impact
Recycling:
• Materials scarcity
• Legislation
• Energy efficient metals
recovery
Energy Materials:
• New (H)EV vehicles
• Photovoltaic demand
• Demand for safer products
3. 3
Vision 2015: our growth profile
Faster growth
Catalysis
Energy Materials
Recycling
• High R&D
• High investments
• Many new applications
and/or markets
GDP growth
Performance Materials
• Lower R&D
• High investments
• Some new
applications and/or
markets
4. 4
Umicore growth profile
Technology to remain the key differentiator
Growth will not be linear
Growth will not be pursued at the expense of value creation
Returns remain fundamentally important and Umicore’s goal is to
generate an average return on capital of 15%+ between now and
2015
5. 5
Strategic roadmap
Prepare
Regain profitability
of 2007-2008
Lay the foundations
for exceptional
growth initiatives (eg
battery materials, HDD)
Demonstrating the
feasibility of others
(eg battery recycling)
Focus
Intensification of
investment efforts
Initial pay-off for
major growth
initiatives in terms of
market position and
profitability
Accelerate
Acceleration of
growth
Growing into
leadership positions
Optimum
performance
Further investments
in chosen areas
2010-2012 2012-2015 2015+
7. 7
REBIT&ROCE
64.2
16.7
77.7
89.59.4%
3.0%
12.4%
12.7%
0
50
100
2008 2009 2010 2011
(in million €)
Revenues
712
586
699
813
0
300
600
900
2008 2009 2010 2011
(in million €)
Catalysis progress report
Outstanding growth in most markets
New HDD contracts in all regions
New LDV contracts globally
New investment wave:
• Technology development centre in Suzhou,
China
• Production line for LDV and HDD in
Suzhou, China
• New HDD production line in Florange,
France
• New AC test centre approved for Brazil in
Americana
• New investments in PMC in Guarulhos,
Brazil
8. 8
Catalysis priorities 2012
Expansion in existing markets for HDD and
LDV
Investment in emerging automotive
markets
Increase penetration with Japanese OEMs
both in Japan and elsewhere
Pursue PMC investments in USA
Capex
53.0
46.0 45.7
49.5
0
25
50
75
2008 2009 2010 2011
(in million €)
9. 9
Energy Materials progress report
Significant growth in cathode materials
sales especially for electrified vehicle
batteries
Profitability lower due to start-up costs of
new investments
Qualification of new rotary targets in TFP
made good headway
Take-off of Ge substrate sales for CPV
CSM successfully implementing its product
and geographical diversification strategy
Revenues
395.0
305.1
347.6
395.9
0
100
200
300
400
500
2008 2009 2010 2011
(in million €)
REBIT&ROCE
57.3
23.9
43.9
41.0
6.7%
15.9%
9.5%
11.8%
0
25
50
75
2008 2009 2010 2011
(in million €)
10. 10
Energy Materials priorities 2012
Develop RBM as stand-alone BU
+ new products, infrastructure, IP
Start next expansion phase in Korea
Expansion of TFP
Adapt EOM production footprint
CSM to focus on supply of critical
materials for the growth of CSM & RBM
Capex
52.3 51.0
38.3
67.6
0
25
50
75
2008 2009 2010 2011
(in million €)
11. 11
Performance Materials progress report
2011 growth well above global GDP levels
in most areas
Investments up by 32%
Successful steps in internationalizing the
business & developing new market niches
• Ammonia and cyanide-free products in
Electroplating
• Façade and PV in Building Products
• Japanese footprint for Platinum Engineered
Materials
• Expansion strategy of Zinc Chemicals in
Asia
Revenues
483.4
404.2
446.3
471.2
0
200
400
600
2008 2009 2010 2011
(in million €)
REBIT&ROCE
87.9
36.6
75.2
67.06.9%
14.9%
11.1%
12.8%
0
50
100
2008 2009 2010 2011
(in million €)
12. 12
Performance Materials priorities 2012
Further expansion of Platinum Engineered
Materials in Germany
Expanding Building Products’ coated
materials production in France
Further expansion in Asia
Capex
33.5
23.9 23.9
31.6
0
25
50
2008 2009 2010 2011
(in million €)
13. 13
Recycling progress report
Outstanding revenue growth and record
levels of profit
Strong supply environment and favourable
market conditions for all businesses
New investments launched:
• Sampling
• Water treatment
• Thailand (Jewellery & Industrial Metals)
Commissioning of the new UHT plant and
trialling of various new feeds
Revenues
508.2
426.7
506.1
609.5
0
200
400
600
800
2008 2009 2010 2011
(in million €)
REBIT&ROCE
201.5
117.7
195.5
267.2
40.8%
73.5% 69.8%64.8%
0
100
200
300
2008 2009 2010 2011
(in million €)
14. 14
Recycling priorities 2012
Bring new investments on-stream:
sampling, jewellery
UHT technology:
• Trialling of new materials for both
precious and specialty metal
containing residues.
• Further market studies
Further expansion in Jewellery & Industrial
Metals
Capex
66.1
54.9
50.3
55.7
0
25
50
75
2008 2009 2010 2011
(in million €)
20. 20
Great place to work
Zero Accidents
Initiatives underway to further promote safety culture at Umicore eg Umicore Safety
Awards / Site recognition (3-years & 5-years). 2011 safety performance: LTA up from 56
to 60. Severity rate improved.
Occupational exposure reduction
First year of benchmarking performance against aggregated individual biomarker
readings.
People development
Deployment plans are being put in place to ensure that all employees receive an annual
appraisal to discuss individual development (in 2011 87% of us received such an
appraisal)
Preferred employer
The Group focus will be on increasing the satisfaction scores of all employees to reach
the high level recorded for managers in the 2010 People Survey
21. 21
Eco-efficiency
Reduce carbon footprint
We have reduced emissions by 14% vs 2006 (for comparable scope of activity). Energy audits
are being implemented at the sites with the highest emissions.
Emission reduction
We have already achieved reductions in the impact of our metal emissions of 31% (to
water) and 39% (to air) vs 2009 (target is -20% by 2015)
Product sustainability
R&D and EHS have introduced an internal tool to assess product/services sustainability,
the tool is being tested together with the Business Units
22. 22
Stakeholder engagement
Sustainable procurement
Intense supplier screening was conducted for most non raw materials suppliers in 2011.
Focus in 2012 will be on business units screening of raw materials suppliers
Local community
Community engagement was stepped
up in 2011. More than half of
all sites have a structured
engagement plan. Our community
donations reached a record level
in 2011 of €1.75 million, including
disaster relief following Japanese
tsunami and tornadoes in Oklahoma
and Alabama. A new three year
partnership has been started
with UNICEF.
24. 24
World automotive production outlook
by region
Car production
0
10
20
30
40
50
60
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Umicore estimate based on external data sources
[M vehicles]
Middle East/ Africa
South America
South Asia
China
Car production
0
10
20
30
40
50
60
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Umicore estimate based on external data sources
[M vehicles]
Japan/ Korea
North America
Europe
Established Markets Emerging Markets
Source: Umicore estimates based on external databases
25. 25
World automotive production scenarios
by drivetrain
Scenario 1
60
70
80
90
100
110
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Umicore estimate based on external data sources
[M vehicles]
Scenario 3
60
70
80
90
100
110
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Umicore estimate based on external data sources
[M vehicles]
0 0
Source: Umicore estimate based on external data sources
Electric Vehicle (EV)
PHEV (Plug-in Hybrid Electric Vehicle)
HEV (Hybrid Electric Vehicles)
ICE(Internal Combustion Engine-powered vehicle)
27. 27
Reduction targets exist in most regions
95
Europe
-38%154 152
USA
-37%
240
109
Japan
-23%141
145
China
-22%185
Source: Continental (2011)
CO2 emission targets for passenger vehicles
[g/km]
130
181
125
167
2010
2015
2020
2010
2015
2020
2010
2015
2020
2010
2015
2020
actual
proposed
enacted
estimated
28. 28
Different engine configurations
will be needed to reach the 2050 goals
100
50
150
0
0 400 600200 800 1000 1200 1400
CO2
emission
[g/km]
Range
[km]
ICE
diesel
ICE
gasoline
PHEV
FCEV
BEV
2010
2050
2010
2050
2010
2050
2010
2050
2010
2050
EU 2015
target
EU 2020
target
ICE Internal Combustion Engine-powered vehicle
BEV Battery-powered Electric Vehicle
HEV Hybrid Electric Vehicle
PHEV Plug-in Hybrid Electric Vehicle
FCEV Fuel Cell-powered Electric Vehicle
Source:A portfolio of power-trains for Europe: A fact-based analysis (EU coalition study 2010)
29. 29
Umicore’s product offer
covers all powertrain possibilities
ICE HEV PHEV EV
Normal Start-stop Mild Full
Parallel
system
Range
extender
BEV FCEV
Emissio
n
control
catalyst
Relative
size +++ +++ +++ ++ ++ +
No emission
control catalyst
Relative
complexity + + + ++ +++ +
Battery
Relative
size + + ++ ++ +++ ++
Relative
complexity + ++ +++ ++ ++ ++
Fuel cell No fuel cell +++
30. 31
Global leadership
position
Regional positions
Market leader
(#1 or #2 position)
Smaller player
(distant #3)
Circles indicative of 2011 light duty vehicle production volumes (≠ catalyst revenues)
Automotive Catalysts
NorthNorth
AmericaAmerica
EuropeEurope
ChinaChina
KoreaKorea
SouthSouth
AmericaAmerica
JapanJapan
IndiaIndia
RussiaRussia
AustraliaAustralia
31. 32
Automotive Catalysts
Umicore has built a leading position in light
duty catalysis – especially for complex
engine types including hybrid vehicles
Complexity set to increase further: NOx after-
treatment, gasoline particulate filters,
hydrocarbon traps etc
Umicore has specific expertise in catalysis
for alternative fuels
Ongoing positioning in HDD and steady
stream of contract wins
Catalyst requirements are becoming ever more complex
32. 33
Rechargeable battery materials
Extensive product and IP portfolio:
LCO, NMC, LFP
Broad production footprint close to
customer base
Strong track record in rapid production
upscaling
Automotive industry TS16949 quality
standard
Already present on more than a dozen
electrified automotive platforms
The Cheonan plant has been expanding rapidly
to meet customer demand
Li-ion cathode production
2000
2005
2010
2011
2012
Umicore figures(estimate for 2012)
[tonnages]
33. 34
Fuel Cells
Umicore Precious Metals Chemistry
produces electrocatalysts
Solvicore JV develops membrane electrode
assemblies (MEAs)
Umicore focus is long term and increasingly
on automotive applications
A fuel cell future would require a
combination of catalyst and battery materials
know-how: ideal for Umicore
Recycling would also be essential: a fuel cell
contains 10-20g of Pt vs 3g for an
automotive catalyst
34. 35
Recycling
Umicore is unique in its recycling
capabilities relating to the sustainable
powertrain roadmap
• Automotive catalysts
• Batteries
• Fuel cells
Tightening legislation eg ELV and Battery
Directives in EU
Materials scarcity and traceability are also
becoming drivers in the recycling landscape
(eg REE)
Umicore’s battery pre-processing line in Hanau
35. 36
Umicore is in the driver’s seat
Automotive catalysts
Battery materials
Fuel cell materials
Recycling
36. 37
Umicore is in the driver’s seat
Automotive catalysts
Battery materials
Fuel cell materials
Recycling
ICE
37. 38
Umicore is in the driver’s seat
Automotive catalysts
Battery materials
Fuel cell materials
Recycling
HEV
38. 39
Umicore is in the driver’s seat
Automotive catalysts
Battery materials
Fuel cell materials
Recycling
BEV
39. 40
Umicore is in the driver’s seat
Automotive catalysts
Battery materials
Fuel cell materials
Recycling
FCEV
40. 42
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.
Hinweis der Redaktion
With Vision 2015, we have defined what we want to do: the growth focus on clean technologies is clear, I believe, and I will not elaborate on that now. We have not only defined the what, we have also clearly determined the how: we want to differentiate ourselves through technology and leading performance on the environmental and people front. It is not only about which business we want to be in, it is also about how we make ourselves more energy efficient…pollute less….accident free….attract and retain talent. I am often asked if we are prepared to trade off financial returns against safety or enviromental performance. The answer, unambiguously, is NO. Vision 2015 is not about compromises, it is about integrating all perfromance dimensions: they are inseparable and together are essential for the future success of the business. At the centre of this is innovation. Everyone in the company should consider themselves as an innovator and we should embrace and encourage innovation in all its forms and areas to help us make strides forwards not just in what we do but how we do it