Umicore : Full Year Results 2020 Presentation

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Umicore FY 20 audio webcast for analyst & investors

Umicore FY 2020 performance

11 February 2021

Overview

Highlights 2020

2021 outlook

Maintaining strategic course while responding effectively to COVID-19 crisis

2020 business review

2020 financial review

Wrap-up

Q&A

3

Highlights 2020

Record earnings in unprecedented conditions

CATALYSIS

Significant impact of pandemic on automotive market in H1

Umicore disproportionately exposed to market recovery in H2 due to strong position in gasoline for LDV

Strict cost management and operational excellence initiatives

ENERGY & SURFACETECHNOLOGIES

Impact of pandemic on several end-markets

Excluding impact of excess inventories, Umicore's EV cathode materials volumes grew broadly in line with EV battery demand

Adj. EBIT reflecting underutilized capacity and pricing pressure in China, as well as costs related to recent and ongoing expansions

RECYCLING

Record performance with a nearly doubling of adj. EBIT YoY, reflecting strong growth across all business units

Exceptional metal price environment

High activity levels despite COVID-19 crisis and favorable trading conditions

4

2021 outlook

Umicore expects to achieve substantial growth in earnings in 2021, with growth in all business Groups

Given the current limited visibility, this outlook statement is made under the assumption that the ongoing COVID-19 outbreak would not result in additional material or protracted disruptions to the economy or Umicore's operations

CATALYSIS

Further benefit from leading edge technology offering in gasoline applications for LDV in China and Europe

Initial impact of China VI legislation for HDD applications

Savings from footprint adjustments and cost improvements carried out in 2020

ENERGY & SURFACE

TECHNOLOGIES

Substantial growth in sales volumes of cathode materials for EVs

Persisting Chinese overcapacity and pricing pressure

Some € 50m increase in fixed costs in Rechargeable Battery Materials

Volume growth to result in meaningful Adj. EBIT growth, in line with current market consensus1

RECYCLING

Favorable metal prices

Supportive supply mix and moderate volume growth in Precious Metals Refining

If current elevated metal price levels were to prevail throughout the year, Adj. EBIT would increase very significantly vs 2020

1 Umicore has engaged Vara Research GmbH to survey brokerage analysts to provide analysts' consensus estimates to the market. The most recent consensus is available onhttps://vara-services.com/umicore/

6

Maintaining the strategic course…

Strong regulatory drivers underpin Umicore's growth strategy

EU ambition : zero-emission mobility

China :

NEV subsidy plan extended (2022) Higher NEV penetration rate (20% by 2025, 50% by 2035)

Green recovery measures and stimuli for cleaner mobility

Stricter emission norms for ICE (China VI regulation for HDD in July 2021)

Increased need for a more circular economy

Umicore committed to strategic investments in clean mobility and recycling

Greenfield cathode materials plant in Poland :

Commissioning by end of H1 2021 1st industrial-scale plant in Europe

Fuel cell catalyst production ramp-up in Korea

Catalyst production capacity expansion in China for LDV and HDV

Multi-year investment program to improve safety and environmental performance of Hoboken recycling plant

8

… while responding effectively to the COVID-19 crisis

Strong capital	Production
Health & safety
and liquidity	footprint
management	reassessment
Remain top priority
Strict cost	Consolidation of
Strict hygiene and	management	North American
other precautionary	Automotive Catalysts
Optimization of
measures	production
working capital
Dedicated task force	Streamlining of
Postponement of
monitoring global	Cobalt & Specialty
certain investments
operations	Materials activities
Further strengthening
Impairment of certain
of liquidity
assets

9

Key figures FY 2020

REVENUES € 3.2 bn

-4% YoY

Adjusted NET PROFIT

(Group share) € 322 m

Adjusted EPS € 1.34

Proposed gross annual dividend of € 0.75 per share

Adjusted EBIT € 536 m

+5% YoY

Adjusted EBITDA € 804 m

+7% YoYFree Operating Cash Flow € 167 m (- € 39 m in 2019)

Net debt at € 1,414 m

Net debt / LTM Adj. EBITDA 1.76x

CAPEX

€ 403 m

ROCE

12.1%

Record earnings in unprecedented conditions

Note: All references to revenues in this document refer to revenues excluding metals (all revenue elements - value of purchased metals)

COVID-19 outbreak: significant impact on auto-industry

FY 2020 YoY evolution of passenger car production across all powertrains (source: IHS & Umicore - 31/12/2020)

China

Europe

16%21% 20%

-2%

3%

1% 3%

-1%

-27%

-47%

-62% -64%

-88%

-5% YoY -18% YoY

-93%

-22% YoY

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

North America

6%

3%

3% 3%

5%

-2%

-6%

-9%

-20%

-31%

-84%

-99%

-20% YoY

Jan Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec

Global market

5% 3%

1%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

H1: shut down of car OEM's assembly lines and dealerships in key regions as a result of government imposed lock-downs

H2: pick-up in global car demand, albeit with discrepancies between regions in terms of timing, speed and intensity of the recovery

Catalysis FY 2020 performance

Revenues -7% and Adj. EBIT -17%; reflecting severe impact from the pandemic in H1

REVENUES

Automotive Catalysts

Revenue decline much lower than global car market contraction

Disproportionate benefit from market recovery in H2 Outperformed LDV market in China and Europe Higher sales of catalysts for HDD applications

Cost savings (footprint adjustments + operational excellence initiatives)

Precious Metals Chemistry

Revenues down due to COVID-19 impact on automotive industry

Continued strong demand for fuel cell catalysts

2016

Adjusted EBIT

200

150 100 50 0

million €

2017

2018

2019

2020

185

2016

 H1

 H2

2017

2018

2019

2020

EV battery demand evolution

Evolution global EV LDV battery demand (GWh)

Source: EV Volumes, Umicore

Global EV battery market up 17% to 137 GWh, driven by Europe

Regional differences in demand patterns:

Little year-on-year growth in China, well below industry anticipations

More than doubling of demand in Europe driven by CO2 DirectiveContrasting evolution in China with demand dropping in H1 and some recovery starting at year-end

E&ST FY 2020 performance

Revenues -15%; Adj. EBIT -59%; severe COVID-19 impact and significant negative operating leverage

Rechargeable Battery Materials

Lower cathode materials revenues: higher NMC volumes for EVs; lower LCO and ESS volumes

Pricing pressure, underutilized capacity in China Higher fixed costs related to expansions

Cobalt & Specialty Materials

Lower revenues reflecting impact of COVID-19

Lower contribution from refining & recycling activities; reduced demand for cobalt and nickel chemicals

Electroplating recorded slightly higher revenues; revenues in Electro-Optic Materials decreased

REVENUES

1,500

1,250

1,000

Adjusted EBIT

250

million €

1,289

1,225

750

500

250

0

2016

2017

2018

2019

2020

300

257

200

150

100

50

0

2016

 H1  H2

2017

2018

2019

2020

15

Recycling FY 2020 performance

An exceptional metal price environment, in particular for rhodium

Rhodium (EUR/kg)

500,000

450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000

0

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

2018

2019

2020

Source: Umicore

Palladium (EUR/kg)

100,000

90,000

+12%

80,000

Dec. 2019/2020*

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

2018

2019

2020

*Comparison of average metal rates December 2019 vs December 2020

Gold (EUR/kg)

100,000

90,000

+33%

80,000

Dec. 2019/2020*

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

2018

2019

2020

Historically high and volatile precious and PGM price levels in 2020, in particular for rhodium.

Rhodium price surged in H2 20 in a context of tight supply and high demand from the car industry as a result of increasingly stringent emission norms.

Current prices for precious and PGM metals already well above the average received prices in 2020.

16

Recycling FY 2020 performance

Revenues +23%; Adj. EBIT +92%; higher metal prices and to a lesser extent favorable trading conditions and supply mix

Precious Metals Recycling

Higher metal prices, particularly for PGMs Supportive supply environment Supportive trading conditions

Higher processed volumes (vs. extended maintenance in '19)

Increased Jewelry & Industrial Metals revenues

Substantial increase in earnings contribution from

Precious Metals Management

REVENUES

1,000

750 500 250

0

2016

Adjusted EBIT

million €

836

2017

2018

2019

2020

400 300 200 100

362

0

2016

 H1  H2

2017

2018

2019

2020

17

Record Adj. EBIT(DA) and margins driven by Recycling

Adj. EBIT & Adj. EBIT margin

800 600 400 200

0

2016

2017

Adj. EBITDA & Adj. EBITDA margin

1200

1000

800

600

400

200

0

24.6%

2016

2017

Group, excluding discontinued activities, million €

2018

2019

Record adj. EBIT (€ 536 m) and record adj. EBIT margin

16.0%

14.0%

Stellar adj. EBIT growth in Recycling more than offset decreases in Catalysis and E&ST.

12.0%

10.0%

8.0%

Includes € 24 m higher D&A charges year on year from recent investments and acquisition.

6.0%

4.0%

2.0%

Strong rebound in Catalysis with 2H adj. EBIT, up 34 % year on year.

0.0%

2020

Record adj. EBIT margin driven by higher metal margin in Recycling.

25.0% 20.0% 15.0% 10.0% 5.0% 0.0%

Record adj. EBITDA (€ 804 m) and record adj. EBITDA margin

Strong operating cash flow with highest adjusted EBITDA contribution in history.

Adj. EBITDA up 7 % year on year vs + 5 % for adj. EBIT.

2018

2019

2020

Adj EBITDA margins more resilient across business groups than adj. EBIT.

Pronounced operating leverage effects

Umicore FY 2020 performance

Full P&L

Million €

FY 2019

FY 2020

Adjusted EBIT

- Net finance cost

508.9

536.4

(83.2) (104.2)

- Adjusted Tax Adjusted net result

- Minorities

Adjusted net result Group share

Adjusted EPS

Adjustments to net result Group share

Net result Group share

(102.5) (102.7)

323.1 329.4

(11.4) (7.0)

311.7 322.4

1.30 1.34

(23.9)

287.8

(191.9)

130.5

Slight increase in Adj. net Group result and Adj. EPSHigher interest charges mainly due to higher financial debtStable adjusted tax charge and stable effective adjusted group tax rate (24.2%)Substantial adjustments in response to COVID-19

Substantial adjustments to EBIT

Million €

Restructuring-related Selected asset-impairments Environmental

Other

Total EBIT adjustments Adjusted tax result Adjusted minority result

Net adjustments (Group Share)

(97) (128)

(14) (45)

Million €

(55) (56)

1 (8)

(165) (237)

30 44 3 2

• • Full year adjustments to EBIT per business group :

• • Catalysis : - € 57 m

  • • Recycling : - € 51 m

• • E&ST : - € 112 m

• • Corporate : - € 17 m

  (of which Element 6 : - € 14 m)

- € 237 m EBIT adjustments :

• • 1H : concentrated in Catalysis

• • 2H : concentrated in E&ST and Recycling

• • >50% restructuring-related

• • Hoboken green zone provision of € 50 m

• • - € 147 m non-cash charges vs - € 90 m (future) cash out

• • Net result impact : - € 192 m

Increase in free operating cash flows

million €, continued operations only

1000

-1000

-500

500

0

FY15

Cashflow generated from operations after net working capital cash flowNet working capital cash flows

Cashflow from operations before net working capital cash flow

million €, continued operations only

800

FY16

FY17

FY18

FY19

549 603

-200

-400

-600

600

400

200

0

-498

-800

-588

FY15

FY16

FY17

FY18

FY19

FY20

Cashflow generated from operations after net working capital cash flowCapex + capitalized development expenses

Free cashflow from operations

FY20

*Free cashflow from operations = cashflow generated from operations - capex & capitalized development expenses

Cash flow from operations before changes in working capital up 13 % at € 707 m

Increase in cash working capital of € 104 m mostly driven by higher PGM prices

Cash working capital increase mostly in Catalysis (Recycling to a lesser extent); decrease in E&ST

Cash flow from operations after working capital up 10 % at € 603 m

Free cash flow from operations up from - € 39 m in 2019 to € 168 m

Highest amount in recent years

Selective capex spending in view of market context (€ 403 m vs € 553 m in 2019)

Net cash flow bridge

million € 650 600 550

500

450

400

Free operating cashflow of € 168 million resulting in a € 29 million decrease in reported net debt

350

300

250

€ 44 million portion of convertible bond accounted for as equity

200

150

100

50

0

60

44

12

29

Dividend cash out of € 60 m limited to interim dividend payout in H2 20

-50

Cashflow from operationsCapex & capitalized development expenses

Free Operating Cashflow

Net interest paidDividends paid to

Umicore shareholders

Conversion right of convertible bond recognized in equity

Other (FX,Decrease inown shares, reported netlease liability…)financial debt

Further strengthening and diversification of funding base

Harmonize million to m

Stable net financial debt of € 1,414 m, slightly below the level of end 2019

Corresponds to robust credit ratios :

• • Net debt / Adjusted EBITDA ratio of 1.76x

• • Net gearing ratio of 35%Further diversification of LT funding base :

• • € 125 m 8-year EIB loan

• • € 500 m 5-year convertible bond

1500

1400

1300

1200

1100

1000

900

800

700

600

500

400

300

200

100

0

-0.6

1.9

1.4



0.9

Gearing ratio

0.4



Net debt / Adj. EBITDA

-0.1



Consolidated net financial debt, end of

2016

2017

2018

2019

2020

periodmillion €

Long-Term Fixed Rate Debt Maturity Profile

500

400

300

200

100

0

2023

2024

2025

2026

2027

2028

2029

2030

2031

Wrap-up

Maintaining strategic course and commitment to growth investments in clean mobility and recycling while responding effectively to the COVID-19 crisis

Strongest financial performance ever despite unprecedented conditions

Umicore's priority remains to keep its employees healthy and safeSuccess of Horizon 2020 strategy, building on complementarity of activitiesLong-term strategic drivers stronger than ever; further progress in execution of growth strategy in 2021

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Financial calendar

26 March 2021	Publication of 2020 annual report
29 April 2021	Annual General Meeting of Shareholders
3 May 2021	Ex-dividend date
4 May 2021	Record date for the dividend
5 May 2021	Dividend payment date
30 July 2020	Half Year Results 2021

Link to all documents related to Umicore's 2020 FY results

For a glossary of used financial and technical terms please refer tohttps://www.umicore.com/en/investors/glossary/