Umicore : Ordinary and extraordinary shareholders' meetings - 30/04/2020

Ordinary, special and extraordinary shareholders' meetings

30 April 2020

Agenda

Governance Highlights 2019 COVID-19

2020 outlook Remuneration Voting

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Governance

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Board of directors

Key board meeting topics in 2019

• Financial performance and budget for the Group
• Funding mandate (US private placement)
• Innovation strategy
• M&A projects
• Investment projects and strategic opportunities
• Business reviews and market updates
• Business risk assessment
• IT security
• Board and ExCom succession

7 full board meetings in 2019

100% attendance for full board meetings

100% attendance for all committees

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Application of new corporate governance rules

New Belgian Code of companies and associations

Two-tier model

• • Supervisory board, composed exclusively of non-executive directors and headed by a chairman
  • Management board headed by the CEO
• The two-tier model is the most appropriate for Umicore going forward
• Submitted for shareholders' approval (EGM)

Umicore board decided not to propose a resolution seeking to give dual voting rights to registered shareholders holding their shares for a period of more than two years

Belgian Code

of Corporate

Governance 2020

• Results in only few minor changes in Umicore's governance practice
• The board has approved a new version of the corporate governance charter
• Umicore will report on compliance against its provisions in the annual report
• Remuneration
• • Directors already partly paid in shares
  • In addition, the board, upon advice of the nomination & remuneration committee, will set a minimum shareholding requirement for members of the executive management

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Proposed board member

Mario Armero

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Highlights 2019

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Significant strides made in the execution of Horizon 2020 strategy

Clear leadership	Doubled the size	Turned sustainability	Rebalanced
in clean mobility	of the business in	into a greater	portfolio & earnings
materials and recycling	terms of earnings	competitive edge	contributions

	REVENUES	+3%		ROCE		Capex
With a strong	€3.4bn		12.6%		€553m
performance in a
persistently challenging	REBIT	Close to 2018		EPS	-5%	R&D
market context	record level
€509m		€1.30		€211m

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Strong performance in persistently challenging market context

Strong performance in persistently challenging environment

CATALYSIS

Market share gains in gasoline catalyst applications

Leading light-duty catalyst provider in China, largest car market worldwide

Strong growth from fuel cell catalyst applications

ENERGY & SURFACE

TECHNOLOGIES

Growth in cathode materials for EVs in line with the market

Higher cathode materials sales in H2, sequentially and YoY

Cobalt price halved vs 2018

Higher D&A and upfront greenfield investment costs

RECYCLING

Favorable supply environment

Optimized input mix offset largely lower volumes

Higher metal prices

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Strong performance in persistently challenging market context

	REVENUES		REBIT			REBITDA
CATALYSIS	€1.5bn +7%		€185m	+10%		€264m +11%
	REVENUES		REBIT			REBITDA
ENERGY & SURFACE	€1.2bn -5%		€183m	-29%		€271m	-16%
TECHNOLOGIES
	REVENUES		REBIT			REBITDA
RECYCLING	€681m +9%		€188m	+40%		€250m	+29%

34%33%

Group

REBIT

33%

Catalysis

Energy & Surface Technologies

Recycling

Corporate not included

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Striving for healthy & safe employees

Delivering eco-efficient & ethical operations

VALUE CHAIN & SOCIETY

Global Framework Agreement on Sustainable Development renewed

Gold & silver certified conflict-freeRMI-conformant Cobalt refineries

ECO-EFFICIENCY

Input from secondary	60%
& end-of-life materials

Measuring & increasing the share of purchased renewable energy

GREAT PLACE TO WORK

Growth in Belgium, China, Korea and Finland in 2019

Connecting employees through the digital workplace

Safety remains a priority

-23% energy consumption -59% metal emissions to air -57% metal emissions to water

vs. 2015 baseline

11,152 group employees

94% retention rate

83% sites without LTAs

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COVID-19

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Umicore's response to COVID-19

Keeping our people healthy and ensuring safe working conditions

Strict hygiene and precautionary measures

Dedicated global task force

Limited number of infected employees

Preserving cash

Reduce costs: production capacity adjusted and 10% of workforce furloughed Optimize working capital

Delay investments (2020 capex expected between € 400 - € 450 million) Proposed reduced dividend of € 0.375 per share for the full year 2019

Strong funding structure and increased liquidity

Strong balance sheet with ample liquidity (€ 1.2 bn immediate cash available) Well-balanced debt profile with no material maturities prior to 2023

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Strong Q1 performance

Well ahead of the previous year

 Recycling: strong Q1 contribution from all business units

• Supportive supply conditions and metal prices in Precious Metals Refining
• Favorable trading conditions for precious and certain PGM metals in Precious Metals Management
• Strong demand for gold investment products and gold recycling services in Jewelry & Industrial Metals

 Catalysis and Energy & Surface Technologies: good start of the year with first impact of COVID-19

• Outperforming the car market in Q1
• Impact of COVID-19 on Automotive Catalysts and Rechargeable Battery Materials:
• • In February in China
  • As from mid-March in other key regions such as Europe and the US

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Impact of COVID-19 on automotive industry

Global

Car production -25% YoY in Q1

China

Car production slowly picking up, yet still significantly below 2019 levels in March (-45%)

More pronounced decline in NEV production (-57% in March) Demand remaining fragile and inventory levels high

Europe and North-America

Car OEMs assembly lines shut down since mid-March

Significant decline in car production in Europe (-45%) and the US (-30%) in March

Assembly lines in Europe gradually restarting production; expected gradual restart in North-America around mid-May

Purchasing power end- consumers impacted by COVID-19

and demand anticipated to

remain fragile in 2020

Umicore currently assumes that global car production for the full year will be down by approximately 25% from the levels of 2019

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Update on COVID-19 impact on operations

CATALYSIS

Production at Automotive

Catalysts:

• Impacted in China during Lunar NY holidays and following weeks; slight pick-up since then
• Temporary production stops in regions outside China, Korea and Japan
• Full impact of COVID-19 on performance expected as of Q2

Demand in Precious Metals

Chemistry significantly impacted by COVID-19

ENERGY & SURFACE

TECHNOLOGIES

Production at Rechargeable

Battery Materials:

• Impacted in China during Lunar NY holidays and following weeks; slight pick-up since then
• Full impact of COVID-19 on performance expected as of Q2

Demand in other business units, in particular Cobalt & Specialty Materials also significantly impacted by COVID-19

RECYCLING

All sites remain in operation and comply with strict sanitary standards

Favorable trading conditions

for Precious Metals

Management

Strong demand for gold investment products and recycling at Jewelry &

Industrial Metals

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2020 outlook

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2020 outlook

REBIT in Catalysis and Energy &		Based on strong Q1 and expectation of
	continued favorable supply conditions,
Surface Technologies expected well
	Recycling REBIT expected well above
below levels of 2019
	levels of 2019
Assuming that global car production will be down by approximately 25% from
	Assuming metal prices remain at their current level.
the levels of 2019.

Duration of COVID-19 impact highly uncertain and visibility on market demand extremely low, making it impossible today to give any reliable quantified outlook for 2020

2020 recurring EBIT expected to be well below the level of 2019

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Remuneration

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Executive committee

Remuneration Policy

• Fixed remuneration reflecting the level of responsibility
• Variable remuneration with 50% undeferred, based on individual performance
• Variable remuneration with 50% deferred over 3 years, based on multi-year Company performance
• Share-basedcompensation: share grant + stock options (both with 3-year lock up)
• Pension plan and other benefits
• Minimum shareholding requirement

Remark: If the dual board structure is adopted by the EGM, Board should be read as Supervisory Board and ExCom as Management Board in the Remuneration Policy as published in the Annual Report.

Changes as of 2020

• Increased fixed remuneration for the CEO (+ € 20,000), and for the executive committee members (+ € 20,000)
• Grant of 10,000 shares for the CEO (vs 10,400 shares for reference year 2018), and 7,000 shares for the executive committee members (vs 7,400 shares for reference year 2018)

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Executive remuneration 2019

	CEO		Executive committee
(in Euros)	2018	2019	2018	2019
Fixed	700,000	700,000	2,306,250	2,525,417
Undeferred variable 50%	220,000	87,500	662,500	570,000
Deferred variable 50%	144,450	256,500	481,500	855,000
Pension	168,397	213,079	661,608	663,437
Other	51,631	51,921	123,293	209,223
Value of shares granted	354,432	420,500	1,381,284	1,764,218
Options (value at grant)	1,033,500	712,600	1,266,038	908,565
TOTAL	2,672,410	2,442,100	6,882,473	7,495,860

	1,088,250 shares
2019	1,542,000 outstanding options

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Board

Remuneration Policy

• Fixed fee reflecting the level of responsibility
• Attendance fee
• Share-basedcompensation

Remark: If the dual board structure is adopted by the EGM, Board should be read as Supervisory Board and ExCom as Management Board in the Remuneration Policy as published in the Annual Report.

Changes as of 2020

• The additional attendance fee for members residing out of Belgium will also apply for the Committee meetings, attended in person and not combined with a Board meeting
• The shares granted have to be held until at least one year after the member leaves the Board and at least 3 years after the moment of grant

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Questions provided ahead of the shareholders' meetings

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Questions provided ahead of the shareholders' meetings

• Could you provide more context on the decision to reduce the dividend for 2019?
• Some companies give their shareholders the option to chose between a dividend pay-out in cash or shares. Would you consider this next year?
• Could you please provide more information on the impact of the COVID-19 pandemic on Umicore's activities in Q1 and FY 2020?

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Questions provided ahead of the shareholders' meetings

• Solidarity with the pandemic's victims

a. Allocation of the budget of the shareholders' meetings

The company Elia will donate the budget which would normally have been used for the organization of the shareholders' meetings to 3 solidarity funds of the King Baudouin foundation. Would you consider this?

b. Creation of a solidarity fund for employees impacted by a lower income due to the pandemic

Ilham Kadri, CEO of Solvay, created a solidarity fund financed by a 15% decrease of the remuneration of Solvay's top management and Board members. Would you consider this?

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Voting

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Agenda

Ordinary shareholders' meeting

1. Annual report of the board of directors and report of the statutory auditor on the statutory annual accounts 2019
2. Approval of the remuneration report
3. Approval of the remuneration policy
4. Approval of the statutory annual accounts 2019 including the proposed allocation of the result

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Agenda

1. Communication of the consolidated annual accounts as well as the board report and the auditor's report on those consolidated annual accounts
2. Discharge to the directors
3. Discharge to the statutory auditor
4. Board composition and remuneration
5. • Re-electingMrs Ines Kolmsee as independent director for a period of 3 years
   • Re-electingMrs Liat Ben-Zur as independent director for a period of 3 years
   • Electing Mr Mario Armero as director for a period of 3 years
   • Approving the board members' remuneration proposed for the financial year 2020

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Agenda

9. Re-election of the statutory auditor and remuneration

• Re-electingPwC Bedrijfsrevisoren/Réviseurs d'Entreprises, represented by Mr Kurt Cappoen, for a period of 3 years
• Approving the remuneration of the statutory auditor for the financial years 2020 through 2022

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Agenda

Special shareholders' meeting

1. Approval of change of control clause

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Agenda

Extraordinary shareholders' meeting

1. Amendment of the articles of association in order to bring them in line with the new Code of Companies and Associations (including the adoption of a two-tier board structure) and to modernize them
2. Composition of the supervisory board
3. Powers

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Ordinary general meeting

Assemblée générale ordinaire

Gewone algemene vergadering

First resolution

Approval of the remuneration report

Première résolution

Approbation du rapport de rémunération

Eerste besluit

Goedkeuring van het remuneratieverslag

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Ordinary general meeting

Assemblée générale ordinaire

Gewone algemene vergadering

Second resolution

Approval of the remuneration policy

Deuxième résolution

Approbation de la politique de rémunération

Tweede besluit

Goedkeuring van het remuneratiebeleid

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Ordinary general meeting

Assemblée générale ordinaire

Gewone algemene vergadering

Third resolution

Approval of the statutory annual accounts of the company for the financial year ended on 31 December 2019 including the proposed allocation of the result

Troisième résolution

Approbation des comptes statutaires de la société relatifs à l'exercice social clôturé le 31 décembre 2019 y compris la proposition d'affectation du résultat

Derde besluit

Goedkeuring van de enkelvoudige jaarrekening van de vennootschap voor het boekjaar afgesloten op 31 december 2019 met inbegrip van de voorgestelde resultaatsbestemming

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Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering

Fourth resolution

Discharge to the directors

Quatrième résolution

Décharge aux administrateurs

Vierde besluit

Kwijting aan de bestuurders

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Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering

Fifth resolution

Discharge to the statutory auditor

Cinquième résolution

Décharge au commissaire

Vijfde besluit

Kwijting aan de commissaris

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Ordinary general meeting

Assemblée générale ordinaire

Gewone algemene vergadering

Sixth resolution

Re-electing Mrs Ines Kolmsee as independent director for a period of three years

Sixième résolution

Réélection en qualité d'administrateur indépendant de Madame Ines Kolmsee pour un terme de trois ans

Zesde besluit

Herbenoeming van mevrouw Ines Kolmsee tot onafhankelijk bestuurder voor een periode van drie jaar

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Ordinary general meeting

Assemblée générale ordinaire

Gewone algemene vergadering

Seventh resolution

Re-electing Mrs Liat Ben-Zur as independent director for a period of three years

Septième résolution

Réélection en qualité d'administrateur indépendant de Madame Liat Ben-Zur pour un terme de trois ans

Zevende besluit

Herbenoeming van mevrouw Liat Ben-Zur tot onafhankelijk bestuurder voor een periode van drie jaar

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Ordinary general meeting

Assemblée générale ordinaire

Gewone algemene vergadering

Eighth resolution

Appointing Mr Mario Armero as director for a period of three years

Huitième résolution

Election en qualité d'administrateur de Monsieur Mario Armero pour un terme de trois ans

Achtste besluit

Benoeming van de heer Mario Armero tot bestuurder voor een periode van drie jaar

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Ordinary general meeting

Assemblée générale ordinaire

Gewone algemene vergadering

Ninth resolution

Approving the board members' remuneration

Neuvième résolution

Approbation de la rémunération des membres du conseil d'administration

Negende besluit

Goedkeuring van de vergoeding van de leden van de raad van bestuur

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Ordinary general meeting

Assemblée générale ordinaire

Gewone algemene vergadering

Tenth resolution

Re-electing PricewaterhouseCoopers Bedrijfsrevisoren/Réviseurs d'Entreprises, represented by Mr Kurt Cappoen, as statutory auditor for a period of three years - approving the statutory auditor's remuneration

Dixième résolution

Réélection en qualité de commissaire de PricewaterhouseCoopers Réviseurs d'Entreprises, représentée par Mr Kurt Cappoen, pour un terme de trois ans - approbation de la rémunération du commissaire

Tiende besluit

Herbenoeming van PricewaterhouseCoopers Bedrijfsrevisoren, vertegenwoordigd door de heer Kurt Cappoen, tot commissaris voor een periode van drie jaar - goedkeuring van de vergoeding van de commissaris

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Special general meeting

Assemblée générale spéciale

Bijzondere algemene vergadering

Sole resolution

Approval of a change of control provision, as required under Article 556 of the old Belgian Companies Code

Unique résolution

Approbation d'une clause de changement de contrôle, comme requis sous l'article 556 de l'ancien Code des sociétés belge

Enig besluit

Goedkeuring van een clausule van controlewijziging, zoals vereist onder artikel 556 van het oude Wetboek van vennootschappen

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Extraordinary general meeting

Assemblée générale extraordinaire

Buitengewone algemene vergadering

First resolution

Amendment of the articles of association in order to bring them in line with the new Code of companies and associations and to modernize them

Première résolution

Modification des statuts en vue de les mettre en concordance au nouveau Code des sociétés et des associations, et de les moderniser

Eerste besluit

Wijziging van de statuten om ze in overeenstemming te brengen met het nieuw Wetboek van vennootschappen en verenigingen

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Extraordinary general meeting Assemblée générale extraordinaire Buitengewone algemene vergadering

Second resolution

Composition of the supervisory board

Deuxième résolution

Composition du conseil de surveillance

Tweede besluit

Samenstelling van de raad van toezicht

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Extraordinary general meeting Assemblée générale extraordinaire Buitengewone algemene vergadering

Third resolution

Powers

Troisième résolution

Pouvoirs

Derde besluit

Volmachten

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