Umicore H1 2021 performance
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Umicore H1 2021 performance
Umicore PUBLIC document Umicore PUBLIC document
30 July 2021
Agenda
• Highlights H1 2021
• 2021 outlook
• H1 2021 business review
• H1 2021 financial review
• Wrap-up
• Q&A
Umicore PUBLIC document
H1 2021 Umicore performance 2
Highlights H1 2021
Strong performance across business groups driving record results:
revenues +37% and adj. EBIT +157%
ENERGY & SURFACE
CATALYSIS TECHNOLOGIES RECYCLING
Strong outperformance of car Substantially higher sales New record performance:
market volumes of cathode materials nearly YoY doubling of adj.
used in EVs, both YoY and EBIT vs already very high levels
Market share gains and sequentially
favorable platform mix in Strong performance across
gasoline LDV in Europe and business units
Strong recovery in CSM and
China; strong demand for strong demand in MDS Record metal prices, esp.
China V HDD-catalysts
rhodium
Adj. EBIT well up; higher
High sales volumes and new revenues compensating Excellent supply and trading
customer wins in PEM fuel cell increase in fixed costs, as conditions
catalysts anticipated
Umicore PUBLIC document
H1 2021 Umicore performance 3
2021 outlook Umicore PUBLIC document Umicore PUBLIC document
Guidance for full year 2021 raised
Based on the strong performance in H1 and assuming precious metal prices
remain around current1 levels for the remainder of the year, Umicore expects its
adjusted EBIT for the full year 2021 to slightly exceed € 1 billion2.
Compared to 2020, this FY outlook incorporates an exceptional additional
contribution of roughly € 250m linked to higher current1 precious metal prices.
Adjusted EBIT in H2 is expected to be lower than in H1 as:
H1 benefited from the spike in precious metal prices and
H2 includes the effect of the planned maintenance shutdown in Hoboken and the
currently anticipated impact of the semi-conductor shortage on car production.
1 Current refers to the date of this publication i.e., 30 July 2021
2 Umicore announced on 22 April 2021 that it expected adj. EBIT for 2021 to approach € 1 billion.
Umicore PUBLIC document
Umicore H1 2020 performance 5Guidance for full year 2021 raised
CATALYSIS ENERGY & SURFACE RECYCLING
TECHNOLOGIES
2021 adj. EBIT expected to more 2021 adj. EBIT expected to grow 2021 adj. EBIT expected to reach
than double compared to 20201 meaningfully and may slightly exceed exceptional levels, well above 20203
current market consensus2
Continued outperformance vs automotive However, the stronger than anticipated Assuming current metal prices prevail
market performance in CSM and MDS in H1 is throughout remainder of the year
expected to normalize and should not be
H2 revenues and earnings impacted by Robust operations and strong growth
extrapolated to H2
more subdued demand in car industry across business units and regions
due to ongoing shortage in global Substantial growth in sales volumes of
H1 not to be extrapolated to H2 as
semiconductors supply cathode materials to power EVs in 2021
- H1 included spike in precious metal
expected to more than compensate a € 50
H2 China HDD sales volumes impacted prices
million increase in fixed costs
by phase out of China V-compliant - Planned maintenance shutdown of
catalysts the Hoboken smelter in H2
1 Catalysisadjusted EBIT reached € 154 million in 2020;
2 Consensus adjusted EBIT for Energy & Surface Technologies stood at € 129 million at the time of this publication;
3 Recycling adjusted EBIT amounted to € 362 million in 2020.
Umicore PUBLIC document
Umicore H1 2020 performance 6Setting new industry standards in sustainability
Employees
NetZero Public sector
Society GHG emissions by 2035
and authorities
Customers Suppliers
Zero Zero
harm inequality
Business
Shareholders &
partners
fund providers
Net Zero GHG. Zero regrets.
Neighbors Endless possibilities.
UmicorePUBLIC
Umicore PUBLICdocument
documentH1 2021 business review Umicore PUBLIC document Umicore PUBLIC document
Key figures H1 2021
REVENUES Adjusted EBIT Free Operating Cash Flow
€ 656 m
€ 2.1 bn € 625 m
Net debt at € 1,040 m
+37% YoY +157% YoY Net debt / LTM Adj. EBITDA 0.87x
Adjusted NET PROFIT Adjusted EBITDA CAPEX € 166 m
(Group share)
€ 762 m
€ 428 m
+103% YoY
Adjusted EPS € 1.78 ROCE 28.4%
Interim dividend of € 0.25 per share
Strong performance across business groups driving record results
Umicore PUBLIC document
Note: All references to revenues in this document refer to revenues excluding metals (all revenue elements – value of purchased metals) H1 2021 Umicore performance 9Auto industry recovering from COVID-19
Monthly global passenger car production across all powertrains (source: IHS & Umicore - 19/07/2021)
H1 2021 global
9,000,000
car production
8,000,000 +30% vs H1 2020
7,000,000
H1 21 global car
6,000,000 production still
5,000,000
13% below pre-
COVID H1 2019
4,000,000 levels
3,000,000
First signs of
2,000,000
slowdown in Q2
1,000,000 reflecting impact
from semi-
0
January February March April May June conductor
2019 2020 2021
shortages
Umicore PUBLIC document
H1 2021 Umicore performanceCatalysis H1 2021 performance
Revenues +59% and adj. EBIT +853%
Automotive Catalysts REVENUES
1,000
Strongly outperforming recovering car market in key regions
800
908
Further market share gains and favorable platform mix in
794
743
600
717
709
652
633
620
LDV, esp. in Europe and China
571
400
Strong demand for China V HDD catalysts 200
0
Cost savings and production footprint optimization
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
Precious Metals Chemistry
Strong demand for homogenous catalysts and exceptional Adjusted EBIT
PGM environment
250
Fuel Cell & Stationary Catalysts 200
204
150
Doubling of PEM fuel cell catalysts sales volumes driven by
132
100
strong demand from existing customers and customer wins
99
21
87
86
85
82
81
50
in China
0
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
Substantially lower sales of stationary catalysts
Umicore PUBLIC document
H1 2021 Umicore performance 11E&ST H1 2021 performance
Revenues +7% and adj. EBIT +44%
REVENUES
Rechargeable Battery Materials
700
Substantial increase in cathode materials volumes primarily for 600
650
639
618
607
594
500
557
the European EV market, both YoY and sequentially
495
488
400
398
300
Lower contribution from cobalt refining activities 200
Higher fixed costs (recent and ongoing expansions; R&D) 100
0
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
Cobalt & Specialty Materials benefiting from a continued
post-COVID-19 recovery in demand, especially for cobalt and
nickel chemicals and tool materials
Adjusted EBIT
Metal Deposition Solutions benefiting from strong 140
demand across key end markets 120
136
121
100
102
80
Stable revenues for Electro-Optic Materials
81
79
78
60
61
40
21
54
20
0
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
Umicore PUBLIC document
H1 2021 Umicore performance 12E&ST H1 2021
Commissioning of cathode materials plant in Nysa, Poland
First industrial scale cathode
materials production plant in
Europe
Commissioned end of H1
2021 with initial commercial
production volumes expected
around year-end
Carbon neutral as of start of production with 100% green
power supply
Closing of long-term PPA with Engie for the supply of
renewable electricity to Nysa
Umicore PUBLIC document
H1 2021 Umicore performance 13Exceptionally high and volatile precious metals
prices, in particular rhodium
Rhodium (EUR/kg) Palladium (EUR/kg) Silver (EUR/kg)
H1 21 price average 800
of € 656,603/kg
800,000
80,000
700
700,000 70,000
600 H1 21 price average
of € 706/kg
600,000 60,000
H1 21 price average 500
500,000 of € 69,188/kg
50,000 H1 20 price average
of € 62,104/kg 400
400,000 40,000
300 H1 20 price average
300,000 30,000 of € 485/kg
200,000 200
20,000
H1 20 price average
100,000 of € 271,719/kg 10,000 100
0 0 0
01-20
03-20
05-20
07-20
09-20
11-20
01-21
03-21
05-21
01-20
03-20
05-20
07-20
09-20
11-20
01-21
03-21
05-21
01-20
03-20
05-20
07-20
09-20
11-20
01-21
03-21
05-21
Umicore PUBLIC document
H1 2021 Umicore performanceRecycling H1 2021 performance
Revenues +48% and adj. EBIT +94%
REVENUES
Precious Metals Refining
600
652
Record precious metals prices
450
Excellent supply and trading conditions
440
396
300
368
339
327
313
311
300
Strong demand across end-markets and regions 150
Robust operational performance and optimal capacity use; 0
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
volumes in line with high levels of H1 20
Jewelry & Industrial metals
Strong uplift in demand for investment and jewelry products Adjusted EBIT
400
Higher demand for platinum engineered materials
371
300
Precious Metals Management 200
191
Significantly higher earnings contribution due to favorable trading
171
100
H2 2020 112
conditions
H1 2019 79
H1 2020 76
H2 2018 55
H1 2018 73
H2 2019 56
0
H1 2021
Umicore PUBLIC document
H1 2021 Umicore performance 15H1 2021 financial review Umicore PUBLIC document Umicore PUBLIC document
Outstanding Adj. EBIT(DA) and margins
Driven by demand recovery and exceptional metal price environment
Adj. EBIT & Adj. EBIT margin
700
28.6% 0.3
Adjusted EBIT at € 625 million, up 157% compared
600
to H1 20, which was severely impacted by COVID-
0.25
625
500 17.2%
15.2% 15.9% 14.3% 15.3%
0.2
400 13.5%
13.0%
15.3%
0.15
19 pandemic
300
Recovery in underlying demand
293
0.1
200
269
261
252
243
240
203
195
100 0.05
0 0
Strong boost from record precious metal prices
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
Cost saving benefits
Adj. EBITDA & Adj. EBITDA margin
Adjusted EBITDA at € 762 million, doubling
34.9% compared to H1 20
800 0.35
700 25.3% Slight increase in adjusted Group D&A
762
0.3
600 22.4% 21.4% 22.7% 23.8%
20.3% 19.8% 21.3% 0.25
500 0.2
Higher margins across Business Groups,
400
particularly in Recycling and Catalysis
429
0.15
396
300
376
364
357
356
299
0.1
200
288
100 0.05
0 0
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
Umicore PUBLIC document
H1 2021 Umicore performance 17
Group, excluding discontinued activities, million €Full P&L
Million € H1 2020 H1 2021
Adjusted EBIT 243 625
Substantial increase in Adj. net
- Net finance cost (45) (52) Group result and Adj. EPS,
reflecting strong Adj. EBIT
- Adjusted Tax (47) (140)
increase
Adjusted net result 151 433
- Minorities (3) (5) Increase in adjusted net financial
cost due to higher interest and
Adjusted net result Group share 148 428 forex charges.
Adjusted EPS 0.62 1.78
Substantially higher adjusted tax
charges tracking the higher
Adjustments to net result Group (57) (28)
taxable profit with stable
share effective adjusted Group tax rate
Net result Group share (24.9%)
91 400
Umicore PUBLIC document
H1 2021 Umicore performance 18
Group, excluding discontinued activities, million €Net cash flow bridge
million €
900
800 Free operating cashflow of
180 € 656 million, including € 30
700
million working capital
600 836 72 22 reduction, driving a € 374m
decrease in reported net
500 120
656
39 financial debt
400
29
300 374
200 Combined cash out of
100 € 214 million related to net
interest charges, taxes and
0
Cashflow Capex & Free Net Dividends to Net Other Decrease in
dividend
Taxes paid
from capitalized Operating interest Umicore purchase of reported net
operations development Cashflow paid shareholders own shares financial debt
expenses
Umicore PUBLIC document
Umicore FY 2020 performance 19Free operating cash flow at record level
million €, continued operations only
1000 836
800 Cash flow from operations after changes in
806
600
437
347 359
working capital tripled to a record € 836
400 308 330
200 363 298 327
million
102 241 275 30
10
0
-200 -10 -89 -72 -32 Decrease in cash working capital of € 30 million,
-400 -335 -373 including positive cut-off effects of appr. € 250
-600
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021
million end of June
Cashflow generated from operations after net working capital cash flow
Net working capital cash flows Cash working capital increase in Catalysis more
Cashflow from operations before net working capital cash flow
than offset by a decrease in E&ST and
Recycling
million €, continued operations only
900 836
700 656 Free cash flow from operations substantially
500
300
298 241 275 327 up to € 656 million
102 50 108 61
100 -10
-105
-100 -301 Capex and capitalized development expenses
-300 -89 -167
-500
-207
-291 -258
-329
-266 -180 increased to € 180m year on year and were
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 concentrated in E&ST.
Cashflow generated from operations after net working capital cash flow
Capex + capitalized development expenses
Free cashflow from operations
Umicore PUBLIC document
Umicore H1 2020 performance 20
*Free cashflow from operations = cashflow generated from operations – capex & capitalized development expensesAdjustments to EBIT
million € H1 2020 H2 2020 H1 2021 - € 39 million EBIT
adjustments :
• Additional Hoboken green zone
Restructuring-related (31) (97) (10) provision of € 41 million
Selected asset-impairments (31) (14) (17) • - € 24 million adjustment related
(1) Million €
(55) to closure of HDD plant in
Environmental (42)
Frederikssund (Denmark) and
Other (9) 1 30 impairment of related IP
Total EBIT adjustments (72) (165) (39) • € 32 million positive adjustment
Adjusted tax result 14 30 5 related to a tax credit in Brazil
Financial result - - 6 • Net result impact after tax : - € 28
Adjusted minority result (1) 3 - million
Net adjustments (Group Share) (58) (134) (28)
Umicore PUBLIC document
Umicore FY 2020 performance 21Wrap up Umicore PUBLIC document Umicore PUBLIC document
Wrap up
Full year guidance raised: adj. EBIT to
Outstanding H1 performance across slightly exceed € 1billion based on
business groups leading to record strong H1 and assuming metal prices
results remain around current1 levels for the
remainder of the year
Bold ESG ambitions under “Let’s go Strengthening long-term strategic
for Zero” strategy setting new industry drivers in clean mobility and recycling
standards fuel growth opportunities
1 Current refers to the date of this publication i.e., 30 July 2021
Umicore PUBLIC document
H1 2021 Umicore performance 23Q&A Umicore PUBLIC document Umicore PUBLIC document
Financial calendar
20 August 2021 Ex-interim dividend trading date
23 August 2021 Record date for the interim dividend
24 August 2021 Payment date for the interim dividend
`
Umicore PUBLIC document
Umicore H1 2021 performance 25Umicore PUBLIC document
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