2013 q3 trading update - umicore · proprietary processes mastering a complex feed with the highest...

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2013 Q3 trading update

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2013 Q3trading update

2013 Q3 highlights

Revenues stable: growth in Catalysis, Energy Materials and Performance Materials offset by lower revenues in Recycling, due to lower metal prices

Preferred option chosen for further expansion of the Precious Metal Refining activities

Investments in other long term growth programs on track

Continued focus on cost reduction measures to mitigate the effects of adverse market conditions in certain business units

Strong free cashflows and further net debt reduction, including buy backs and interim dividend payout

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2013 full year outlook

Umicore confirms it expects its full year recurring EBIT to be within the previously stated range of between € 300 million and € 330

million, albeit at the lower end of the range due to the more testing metal price environment

3

2013 Q3 business review

Revenues up 7%

Global car production was up 3 %. The consolidation of Umicore Shokubai meant that Umicore’s Automotive Catalystsrevenues outpaced the car market

• Modest growth in stabilizing European market

• Somewhat slower-than-market growth in North America

• Overall growth in other regions largely in line with car production

Revenues were down in Precious Metals Chemistry, with lower premiums and a less favourable product mix more than offsetting higher sales volumes

Revenues up 16%

Cobalt & Specialty Materials revenues up due to increased recycling activities and higher sales in ceramics and chemicals

Increased revenues for Electro-Optic Materials with an increase in optics more than offsetting lower substrates volumes

Higher revenues and volumes for Rechargeable Battery Materials, mainly driven by high-end portable electronics

Revenues for Thin Film Products driven by higher demand for large area coating applications

Catalysis Energy Materials

4

2013 Q3 business review

Revenues up 2 %

Building Products’ revenues picked up slightly

Revenues in Electroplating were down compared to a strong quarter last year

Revenues in Platinum Engineered Materials benefited from higher concentration of orders from the glass industry

Somewhat lower volumes and revenues in Technical Materials

Slightly higher revenues in Zinc Chemicals despite a lower contribution from the recycling activities

Higher revenues and an improved product mix in Element Six Abrasives

Revenues down 20%

Revenues down for Precious Metals Refining

• Impact of lower metal prices and lower volumes

• Higher availability of industrial residues, stable for end of life materials

Revenues in Jewellery & Industrial Metals down mainly due to recycling volumes

Despite a high volatility, Precious Metals Management reported lower revenues

Further enhancements of processes in Battery Recycling

Performance Materials Recycling

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Ongoing investments for long term growth

Several investments were commissioned in Q3:

• Opening of a new technology centre for automotive catalysts in Brazil

• First HDD line in Florange, France, now fully operational

• Expansion of NMC cathode production in Jiangmen, China, completed

All other announced investments are progressing according to plan

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Expansion of Precious Metals Refining Activities

Investment plans for Hoboken

Umicore has carried out an extensive assessment of options for

a further expansion of its Precious Metals Refining activities as

part of its Vision 2015 growth strategy for Recycling

Preferred option at this stage is a 40% expansion of the

Hoboken capacity, incorporating recent technology

developments

This would involve a € 100 million investment over a period of

two years

The project is subject to final Board approval and engagement

underway with authorities for permit

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Profiling of the Hoboken recycling plant

Largest and most complex precious metals refining operation in the world

Proprietary processes mastering a complex feedwith the highest degree of flexibility and reliability

• Complexity: highest recovery yield on the most complex residues in the shortest throughput time

• Flexibility: 200 different types of raw material

• Reliability: world-leading sampling & assaying

Advantages:

• Synergy with existing facility, staff and know-how

• Builds on a proven business model

NiPbSb

Sn

As

BiIn

Cu Ru

TeRh

Ir

AgPt

Au SePd

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Strategic drivers

Long term market trends are supportive towards the availability ofcomplex raw materials:

• Sustained metal demand through continued global development

• Depletion of mines leads to deterioration of ore quality

• Processing of complex ores yields ever more complex by-products

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Investments in the process

Sulphuric Acid Plant

NickelRefinery

OLEN

Blast Furnace

Smelter

Leaching & Electro

winning

Precious Metals

Refinery

Precious Metals Operations Base Metals Operations

Lead Refinery

Special Metals

Refinery

SO2

Cu Ag, Au, Pt, Pd, Rh, Ir, Ru

Cu-bullionNi-speiss

Cu-matte

Pb-slag

PM-residues

Agresidue

PM-residues

Se-residue

Pb-bullion

In-Te-residue

H2SO4 Ni, As In, Se, Te Pb, Bi, Sb, Sn Slag

Sampling and Assaying

Raw Materials

Gas Cleaning

Water Treatment

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Investments in the process: Late nineties

Sulphuric Acid Plant

NickelRefinery

OLEN

Blast Furnace

Smelter

Leaching & Electro

winning

Precious Metals

Refinery

Precious Metals Operations Base Metals Operations

Lead Refinery

Special Metals

Refinery

Cu Ag, Au, Pt, Pd, Rh, Ir, RuH2SO4 Ni, As In, Se, Te Pb, Bi, Sb, Sn Slag

Sampling and Assaying

Raw Materials

Gas Cleaning

Water Treatment

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Investments in the process: Mid 2000s

Sulphuric Acid Plant

NickelRefinery

OLEN

Blast Furnace

Smelter

Leaching & Electro

winning

Precious Metals

Refinery

Precious Metals Operations Base Metals Operations

Lead Refinery

Special Metals

Refinery

Cu Ag, Au, Pt, Pd, Rh, Ir, RuH2SO4 Ni, As In, Se, Te Pb, Bi, Sb, Sn Slag

Sampling and Assaying

Raw Materials

Gas Cleaning

Water Treatment

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Investments in the process: Most recent

Sulphuric Acid Plant

NickelRefinery

OLEN

Blast Furnace

Smelter

Leaching & Electro

winning

Precious Metals

Refinery

Precious Metals Operations Base Metals Operations

Lead Refinery

Special Metals

Refinery

Cu Ag, Au, Pt, Pd, Rh, Ir, RuH2SO4 Ni, As In, Se, Te Pb, Bi, Sb, Sn Slag

Sampling and Assaying

Raw Materials

Gas Cleaning

Water Treatment

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Investments in the process: 2014 - 2015

Sulphuric Acid Plant

NickelRefinery

OLEN

Blast Furnace

Smelter

Leaching & Electro

winning

Precious Metals

Refinery

Precious Metals Operations Base Metals Operations

Lead Refinery

Special Metals

Refinery

Cu Ag, Au, Pt, Pd, Rh, Ir, RuH2SO4 Ni, As In, Se, Te Pb, Bi, Sb, Sn Slag

Sampling and Assaying

Raw Materials

Gas Cleaning

Water Treatment

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Creating value

• Ramp-up and EBIT accretion to start in 2016

• Returns to exceed cost of capital shortly thereafter

• Continued excellence in environmental performance

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Additional growth opportunities in Recycling

• Further enhancement of capabilities of Hoboken site

• The pursuit of opportunities in new markets

• Continued development of the battery recyclingactivities

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Financial calendar

06/02/2014 2013 results

29/04/2014 AGM

29/04/2014 2014 Q1 trading update

31/07/2014 Half year results 2014

23/10/2014 2014 Q3 trading update

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.

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