Annual General Meetings of Shareholders 25 April 2019 Agenda - - PowerPoint PPT Presentation

25 April 2019

Annual General Meetings

• f Shareholders

Agenda

Annual General Meetings of Shareholders 2019

• Review of 2018 performance
• Outlook
• ASM
• Governance review
• Voting

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Review of 2018 performance

Annual General Meetings of Shareholders 2019

Record results Strategic choices and recent investments paying off

REVENUES

€3.3bn +17%*

REBIT

€514m

+29%*

ROCE

15.4%

*Excluding discontinued operations

Capex

€478m

EPS

€1.36 +12%

R&D

€196m

Clear leadership in clean mobility materials and recycling Doubled the size

• f the business in

terms of earnings Turned sustainability into a greater competitive edge Rebalanced portfolio & earnings contributions

Significant progress toward 2020 ambitions

4

A focused and balanced portfolio

Annual General Meetings of Shareholders 2019 5

Higher revenues driven by increased contribution of HDD segment and higher demand for gasoline car catalysts. Higher revenues driven by higher processed volumes and a more supportive metal price environment. Revenues substantially up with fast growth in EVs and strong volumes and prices in H1. CATALYSIS 30% Catalysis 46% Energy & Surface Technologies 24% Recycling RECURRING EBIT 24% 30% 46% RECYCLING ENERGY & SURFACE TECHNOLOGIES

* excl impact divestment European Technical Materials in Jan ‘18

Revenues +9% REBIT +2% REBITDA +6% Revenues +44% REBIT +82% REBITDA +63% Revenues +6%* REBIT +12%* REBITDA +7%*

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Value chain and society

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Gold & silver certified conflict-free by LBMA Responsible custody/sourcing certified by RJC for platinum, palladium & rhodium Closed the cobalt loop for a world leader in portable electronics Rated Gold (top 5%) by EcoVadis 6% of cobalt used from recycled origin

67% 72%

CLEAN MOBILITY AND RECYCLING

2016 2017

REVENUES FROM

2018

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Eco-efficiency

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42 energy efficiency projects at 28 sites accounting for 95% of our energy consumption

*vs 2015 benchmark

• 71%

Metal emissions to water*

• 46%

Metal emissions to air*

• 29%

Energy consumption*

42% Primary materials 58% Secondary & end-of-life materials RESOURCE EFFICIENCY 42% 58%

7

Great place to work

8 8

55% Europe 28% Asia-Pacific 15% North & South America 2% Africa WORKFORCE BY REGION 15% 55% 28% 2%

Growing workforce mostly in China & Korea (+6%) 13% of new hires globally were women Increase of women in management roles (23%) and in senior management positions (10%) People Engagement survey results puts Umicore above the industry average and shows increased confidence among employees in the future of Umicore 84% of sites without LTAs

10,420 colleagues in 30 countries 71 nationalities 92.8% retention rate

Annual General Meetings of Shareholders 2019 8

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Umicore expects recurring EBIT for the full year 2019 to be in a range of € 475 million to € 525 million. Developments in Catalysis and Recycling are positive, but the Energy & Surface Technologies business group is facing challenging market conditions, resulting in delays of 12 to 18 months in the development

• f its cathode material sales.

Umicore expects significant growth in revenues and earnings in 2020 but this will be below previous upside indications1.

Outlook

Annual General Meetings of Shareholders 2019

1Umicore had previously indicated that it had identified a potential to exceed its original earnings ambition for the year 2020 by

some 35% to 45%.

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Slowdown in China following changes to subsidy mechanism for EVs Similar trend in the e-bus market New energy storage systems in Korea stopped following safety concerns

In 2019, recurring EBIT for the business group is expected to be well below the levels of 2018

Depressed cobalt price and artisanal mining impacting Cobalt & Specialty Materials products and high cobalt content cathodes such as LCO

Challenging market conditions in Energy & Surface Technologies

Postponed launch of a large xEV platform in China

Annual General Meetings of Shareholders 2019

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In Recycling, maintenance shutdown completed successfully Growing complexity of waste streams Expansion in Precious Metals Refining Improved market conditions

Recycling and Catalysis both expected to grow recurring EBIT, ahead of market consensus.

In Catalysis, some impact from the slowdown in China and softer demand across other regions Benefits to come from business awards for gasoline engines requiring particulate filters and from sales for pharmaceutical, chemical deposition and fuel cell applications

Outlook for Recycling and Catalysis

Annual General Meetings of Shareholders 2019

Cobalt is critical

Annual General Meetings of Shareholders 2019

2018 worldwide production around 130.000 t 50% of global production goes in batteries

• f which <15% goes to EV batteries

and 1/3rd to batteries for smartphones, computers and other electronics. 65% mined in Democratic Republic of Congo (DRC) 1/3 of cobalt production is from ASM = 20%

• f global production

Umicore is one of the largest cobalt buyers in the world

• f which

<15% goes to EV batteries and 1/3 to batteries for computers smartphones and other electronics

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This is artisanal mining (ASM)

Annual General Meetings of Shareholders 2019

Workers are not employed in any

• fficial structure

Hand-picked cobalt: manually-intensive methods, without any protective equipment Issues with human rights, child labor,

• ccupational

health and environmental impact Highly hazardous working conditions

Unacceptable conditions CBS report

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ASM is unacceptable to Umicore

Annual General Meetings of Shareholders 2019

How we operate

Since 2004, no cobalt from artisanal mining Full alignment with the OECD Due Diligence Guidance for Responsible Supply of Minerals from Conflict- Affected and High-Risk areas Sustainable Procurement Framework for Cobalt Third party assurance: annually audited by PWC Compliance report available online Supplier screening, constant monitoring

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Urban mining indispensable for global electrification of transportation Proven industrial capabilities for all types of Li-ion batteries High recovery rates for cobalt, lithium, nickel and copper Highest environmental standards

Battery recycling

Annual General Meetings of Shareholders 2019

a critical additional source of supply

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Umicore Battery Recycling pilot plant in Hoboken, Belgium has had a capacity of 7,000 t/year

• r about 250 million mobile phone batteries/year since 2011

Governance

Annual General Meetings of Shareholders 2019

Board of directors

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Key board meeting topics in 2018

• Financial performance and budget for the Group
• Equity placement (accelerated bookbuild)
• M&A projects
• Investment projects and strategic opportunities
• Business reviews and market updates
• HR, EHS (including sustainability)
• Monitoring the execution of the Horizon 2020 strategy
• Board and ExCom succession

Board field trip to Umicore Jiangmen, China 2018

5 full board meetings in 2018 88% attendance for full board meetings 93% attendance for all committees

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Annual General Meetings of Shareholders 2019

Executive committee

Compensation & benefits package

• Fixed remuneration reflecting the level of responsibility
• Variable (cash remuneration) with 50% deferred over 3 years
• Share-based incentives: share grant + stock options (both with 3-year

lock up)

• Pension plan and other benefits

Changes as of 2019

• Unchanged fixed remuneration for the CEO. Increased fixed

remuneration for the executive committee members (+ 5%).

• Increased annual variable cash remuneration potential for the CEO

(+ €160,000) and the executive committee members (+ € 80,000). The members of the executive committee may also receive their variable cash remuneration partly or totally in the form of Umicore shares at their discretion.

• Decrease of the number of stock options for the CEO from 150,000 to

140,000, and for the executive committee members from 35,000 to 30,000.

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Annual General Meetings of Shareholders 2019

CEO Executive committee

(in Euros)

2017 2018 2017 2018 Fixed 680,000 700,000 2,435,000 2,306,250 Variable for the year 50% 220,000 220,000 790,000 662,500 Deferred variable 25% 130,950 144,450 436,500 481,500 Variable deferred from year prior to prior year 133,650

• 408,375
• Total gross cash remuneration

1,164,600 1,064,450 4,069,875 3,450,250 Non-cash elements Pension 171,408 168,397 734,937 661,608 Other 46,223 51,631 141,735 123,293 Value of shares granted 425,360 354,432 1,815,960 1,381,284 Options (value at grant) 583,500 1,033,500 816,900 1,266,038 TOTAL 2,391,091 2,672,410 7,579,407 6,882,473

Executive remuneration 2018

2018

1,022,100 shares 1,506,500 outstanding options

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Annual General Meetings of Shareholders 2019

Proposed board member

Laurent Raets

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Voting

Annual General Meetings of Shareholders 2019

Agenda

Ordinary shareholders’ meeting

• 1. Annual report of the board of directors and report of the statutory

auditor on the statutory annual accounts 2018

• 2. Approval of the remuneration report
• 3. Approval of the statutory annual accounts 2018 including the

proposed allocation of the result

• 4. Communication of the consolidated annual accounts 2018 as well

as the annual report of the board of directors and the statutory auditor’s report on those consolidated annual accounts

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• 5. Discharge to the directors
• 6. Discharge to the statutory auditor
• 7. Board composition and remuneration
• Re-electing Mrs Françoise Chombar as independent director for a period of 3 years
• Electing Mr Laurent Raets as director for a period of 3 years
• Approving the board members’ remuneration proposed for the financial year 2019

Annual General Meetings of Shareholders 2019

Agenda

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Annual General Meetings of Shareholders 2019

Agenda

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Special shareholders’ meeting

• 1. Approval of change of control clause

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

Annual General Meetings of Shareholders 2019 25

Second resolution Approval of the statutory annual accounts of the company for the financial year ended

• n 31 December 2018 including the proposed allocation of the result

Deuxième résolution Approbation des comptes statutaires de la société relatifs à l’exercice social clôturé le 31 décembre 2018 y compris la proposition d’affectation du résultat Tweede besluit Goedkeuring van de enkelvoudige jaarrekening van de vennootschap voor het boekjaar afgesloten op 31 december 2018 met inbegrip van de voorgestelde resultaatsbestemming

Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering

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Third resolution Discharge to the directors Troisième résolution Décharge aux administrateurs Derde besluit Kwijting aan de bestuurders

Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering

Annual General Meetings of Shareholders 2019 27

Fourth resolution Discharge to the statutory auditor Quatrième résolution Décharge au commissaire Vierde besluit Kwijting aan de commissaris

Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering

Annual General Meetings of Shareholders 2019 28

Fifth resolution Re-electing Mrs Françoise Chombar as independent director for a period of three years Cinquième résolution Réélection en qualité d’administrateur indépendant de Madame Françoise Chombar pour un terme de trois ans Vijfde besluit Herbenoeming van mevrouw Françoise Chombar tot onafhankelijk bestuurder voor een periode van drie jaar

Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering

Annual General Meetings of Shareholders 2019 29

Sixth resolution Appointing Mr Laurent Raets as director for a period of three years Sixième résolution Election en qualité d’administrateur de Monsieur Laurent Raets pour un terme de trois ans Zesde besluit Benoeming van de heer Laurent Raets tot bestuurder voor een periode van drie jaar

Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering

Annual General Meetings of Shareholders 2019 30

Seventh resolution Approving the Board members’ remuneration Septième résolution Approbation des émoluments des membres du Conseil d’administration Zevende besluit Goedkeuring van de voorgestelde vergoeding van de leden van de Raad van Bestuur

Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering

Annual General Meetings of Shareholders 2019 31

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 Belgian Companies Code Unique résolution Approbation d’une clause de changement de contrôle, comme requis sous l’article 556 du Code des sociétés belge Enig besluit Goedkeuring van een clausule van controlewijziging, zoals vereist onder artikel 556 van het Wetboek van vennootschappen

Annual General Meetings of Shareholders 2019 32