Slides
Page 1
1 14 th February 2025 Full Year Results 2024 Umicore - Full-Year Results 2024
Page 2
Disclaimer This presentation is provided solely for general information purposes about Umicore and its activities. This presentation is incomplete without reference to its oral introduction and the related press release. This presentation should be evaluated only in conjunction with them. This presentation contains forward-looking information that involves risks and uncertainties, including statements about Umicore’s plans, objectives, expectations and intentions. 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. 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. As a result, neither Umicore nor any other person assumes any responsibility for the accuracy of these forward-looking statements. Umicore - Full-Year Results 2024 2
Page 3
Speakers 3Umicore - Full-Year Results 2024 Bart Sap Chief Executive Officer Wannes Peferoen Chief Financial Officer
Page 4
4Umicore - Full-Year Results 2024 Business review Financial review 01 03 02 Key figures and FYR highlights 04 Outlook 2025 05 Q&A06 Agenda Wrap-up
Page 5
Key figures and highlights 1 Full-Year Results 2024
Page 6
Umicore Group performance Key figures 6Umicore - Full-Year Results 2024 Revenues € 3.5 bn Adj. EBITDA margin 22.0% Adj. EBITDA € 763 mn Revenue: All revenue elements less the value of the following purchased metals: Au, Ag, Pt, Pd, Rh, Co, Ni, Pb, Cu, Ge, Li and Mn Leverage ratio 1.87x CAPEX € 555 mn ROCE 12.3% Free operating cash-flow € 384 mn
Page 7
Catalysis Impressive performance reflecting structural efficiency and value focused initiatives in a maturing ICE market Recycling Lower revenues and earnings partially mitigated by efficiency measures Specialty Materials Reflecting primarily the effect of competitive market context in Cobalt & Specialty Materials Robust performance of foundation businesses 7Umicore - Full-Year Results 2024 Adj. EBITDA margin 25.9% ROCE 40.4% Adj. EBITDA margin 35.9% ROCE 78.3% Adj. EBITDA margin 18.1% ROCE 9.1%
Page 8
Battery Materials: Slower-than-expected growth in demand for electric vehicles • Strategic review ongoing • Strict capital allocation: • Group CAPEX -35% YoY (excl. €175 mn equity contribution in IONWAY, JV with Volkswagen’s PowerCo) • Pause of battery materials plant construction in Canada, successful transfer of supply contract to Korean plant • Realigning operations based on delayed customer ramp-up’s, adjusted volume projections, and minimal expansion of existing footprint, • 2024 Adj. EBITDA for the Battery Materials Business Group came in close to break-even as per expectations • € 1.60 billion reduction in the Battery Materials’ capital employed in H1 • Step-up in efficiency and cost-saving measures across Group; allowing to generate more than €100 mn EBITDA ahead of the €70 mn target Measures taken to counteract headwinds 8Umicore - Full-Year Results 2024
Page 9
The Supervisory Board intends to set the gross annual dividend of € 0.50 as the new baseline for future dividend payout on which to apply its policy of "stable or rising" dividends and discontinues the practice of paying an interim dividend. Dividend and Dividend Policy 9Umicore - Full-Year Results 2024 Delayed ramp-up of Battery Materials activity and related investments in Europe and Korea The Supervisory Board will propose a gross annual dividend of €0.50 per share for 2024. This is a reduction from the €0.80 per share paid for 2023. Considering the interim dividend of €0.25 per share paid in August 2024, a gross amount of €0.25 per share will be paid on 30 April 20251. 1 Subject to shareholder approval
Page 10
Business review 2 Full-Year Results 2024
Page 11
Date 11 Battery Materials Umicore - Full-Year Results 2024
Page 12
76 74 149 -5 27.7% -0.7% 0 50 100 150 200 250 300 2023 2024 Battery Materials 2024 | Performance Decreased revenues and adj. EBITDA compared to previous year 12 Revenues (€ mn) Adj. EBITDA (€ mn) & EBITDA margin 326 217 222 168 548 386 0 250 500 750 1,000 1,250 2023 2024 • Revenues down YoY • Lower CAM sales volumes and refining income, reflecting global slowdown in EV sales • Absence of non-recurring lithium effect impacting YoY comparison • Adj. EBITDA close to break-even as anticipated • In addition to lower revenues, unfavorable YoY comparison due to a substantial non-recurring positive effect in 2023 • Partially offset by lower overheads and positive one-offs of c. € 40 million • Capex € 307 million, well below 2023 • Focused spending in Europe and Korea to serve customer commitments • Paused plant construction project in Canada H1 H2 Umicore - Full-Year Results 2024
Page 13
Date 13 Catalysis Umicore - Full-Year Results 2024
Page 14
Catalysis 2024 | Market context Global ICE light-duty production contracted by 3% 14Umicore - Full-Year Results 2024 Annual global ICE passenger car production (millions) Source: S&P, KPG & Umicore H1 H2 29.7 37.6 35.7 38.1 38.3 43.3 34.9 37.9 41.2 38.3 2020 2021 2022 2023 2024 73.0 72.5 73.6 79.3 • Substantial decline in EU HDD production (-15.2%); HDD production in China (-7.8%) • LDV ICE production • China -0.8% • N America -1.7% • W. Europe -6.8% • Japan/Korea -6% ICE LDV HDD Internal Combustion Engine Light-Duty Vehicles Heavy-Duty Diesel 76.6
Page 15
571 908 897 946 854 794 780 879 857 812 1,364 1,687 1,776 1,804 1,666 0 250 500 750 1,000 1,250 1,500 1,750 2020 2021 2022 2023 2024 Automotive Catalysts • Outstanding performance primarily reflecting the impact of structural cost measures, footprint optimizations, process efficiency and value focused initiatives in a context of a maturing ICE market Fuel Cell & Stationary Catalysts • Stable revenues and slightly higher earnings supported by efficiency measures • Higher revenues in stationary catalysts offset by lower order levels of PEM fuel cell catalysts • Construction of PEM fuel cell plant in Changshu, China progresses well and expected to become operational early 2026 Precious Metals Chemistry • Revenues decreased: stable sales of homogeneous catalysts and solid orders for inorganic chemicals, performance affected by lower PGM prices Catalysis 2024 | Performance Adj. EBITDA reflecting structural efficiency and value focused initiatives 15Umicore - Full-Year Results 2024 Revenues (€ mn) Adj. EBITDA (€ mn) & EBITDA margin 61 241 206 227 218173 160 213 209 213234 402 419 436 431 17.2% 23.8% 23.6% 24.2% 25.9% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 0 100 200 300 400 500 2020 2021 2022 2023 2024 H1 H2 EBITDA margin
Page 16
Date 16 Recycling Umicore - Full-Year Results 2024
Page 17
17Umicore - Full-Year Results 2024 Revenues (€ mn) Adj. EBITDA (€ mn) & EBITDA margin 222 404 257 204 171 202 236 275 167 155 425 640 532 372 326 50.8% 57.7% 48.1% 36.7% 35.9% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 0 100 200 300 400 500 600 2020 2021 2022 2023 2024 440 652 537 536 469 396 457 569 476 439 836 1,108 1,107 1,013 907 0 250 500 750 1,000 1,250 2020 2021 2022 2023 2024 Precious Metals Refining • Slightly lower revenues: volumes reflecting maintenance shutdown • Earnings slightly above PY driven by operational excellence efforts and reduced energy costs • Green buffer zone project in Hoboken on track for completion by first half of 2025 Jewelry & Industrial Metals • Stable revenues on like-for-like basis; solid order levels of jewelry products and platinum engineered materials • Earnings were slightly higher, supported by efficiency measures Precious Metals Management • Substantially lower earnings contribution primarily driven by less favorable PGM price trading environment, in particular for Rh and Pd Recycling 2024 | Performance Revenues and adj. EBITDA reflecting unfavorable trading context in Precious Metals Management and lower volumes in Precious Metals Refining H1 H2 EBITDA margin
Page 18
Date 18 Specialty Materials Umicore - Full-Year Results 2024
Page 19
Specialty Materials 2024 | Performance Revenues and adj. EBITDA down vs PY, reflecting competitive market environment in Cobalt & Specialty Materials 19Umicore - Full-Year Results 2024 Adj. EBITDA (€ mn) & EBITDA margin 57 44 54 53 110 97 19.8% 18.1% 0 50 100 150 200 250 300 2023 2024 Revenues (€ mn) 282 272 274 264 557 536 0 100 200 300 400 500 600 2023 2024 H1 H2 EBITDA margin Cobalt & Specialty Materials • Revenues slightly below 2023; continued impact of low metal prices, customer destocking behavior and competitive pressure in cobalt and nickel refining • Difficult conditions in tool materials end markets but strong demand for metal carboxylate and organic compounds Electro-Optic Materials • Revenues slightly higher versus PY • Somewhat higher revenues from germanium substrates and recycling; and stable revenues in infrared applications • Earnings slightly lower reflecting lower productivity in infrared solutions Metal Deposition Solutions • Revenues in line with previous year; strong demand for electronics and semiconductor applications offset by lower revenues in decorative and industrial applications
Page 20
Financial review 3 Full-Year Results 2024
Page 21
149 -5 436 -154 -5 -46 -13 9 431 372 326 110 97 -95 -86 Measures taken partly offsetting headwinds 21 Revenue bridge (€ mn) Adj. EBITDA bridge (€ mn) 1,804 548 1,013 FY 23 -162 Battery Materials -137 Catalysis Recycling Specialty Materials 3,876 • Given slower-than-expected growth in demand for electric vehicles and consequently delayed volume ramp-up in Battery Materials: additional measures to adjust cost basis • € 100 million in efficiency gains versus the initial target of € 70 million Umicore - Full-Year Results 2024 FY 24 557 -105 -20 1,666 386 536 907 3,461 • Battery Materials impacted by slowdown in electrification • Catalysis reflecting the global decline in light-duty and heavy-duty vehicle production in Automotive Catalysts • Recycling mainly affected by maintenance shutdown in Precious Metals Refining and less favorable PGM price trading environment in Precious Metals Management FY 23 Battery Materials Catalysis Recycling Corporate FY 24 972 763 25.0% 22.0%Adj. EBITDA margin Specialty Materials
Page 22
• Adjusted net finance cost slightly decreased to € 108 million, reflecting higher interest income on cash deposits • Stable average cost of gross debt at 3.2% vs 3.3% previous year • Higher Adjusted Effective Tax Rate of 29.4% versus 21.6% last year • Adj. net result Group share down to € 255 million, resulting in a € 1.06 adjusted EPS • Net result affected by non-cash impairment: • Adjustments of €-1.79 bn mainly because of a €-1.6 bn non-cash impairment and write down in Battery Materials in H1 2024 Consolidated P&L 22Umicore - Full-Year Results 2024 € million 2023 2024 Adjusted EBITDA 972 763 - Depr. & Amortization (298) (285) Adjusted EBIT 674 478 - Adj net finance cost (110) (108) - Adjusted Tax (121) (109) Adjusted net result 442 261 - Minorities 4 (6) Adjusted net result Group share 447 255 Adjusted EPS 1.86 1.06 Adjustments to EBIT(DA) (82) (1,788) Adjustments to net result Group share (62) (1,735) Net result Group share 385 (1,480)
Page 23
• PPE, inventories and equity decreased substantially due to the H1 2024 Battery Materials impairment and write-down • Strong cash position • Financial debt increased, reflecting first tranche of EIB loan and USPP notes • Net gearing ratio at 42.6% Consolidated balance sheet 23Umicore - Full-Year Results 2024 € million 31/12/2023 31/12/2024 Non-current assets 4,155 3,798 Property, plant and equipment 3,037 2,390 Current assets 5,811 5,580 Inventories 2,850 2,252 Cash and cash equivalents 1,515 2,013 Total assets 9,966 9,412 Equity of the Group 3,697 1,922 Non-current liabilities 2,672 3,137 Financial debt 2,019 2,317 Current liabilities 3,596 4,350 Financial debt 729 1,120 Trade and other payables 2,591 2,852 Total equity & liabilities 9,966 9,412
Page 24
• Free operating cash flow remains strong at € 384 million • Group-wide focus on working capital improvement, resulting in a € 392 million reduction • Capex, incl. capitalized development expenses, reduced with 1/3rd versus PY , mainly in Battery Materials Free Operating Cash flow 24Umicore - Full-Year Results 2024 Free operating cash flow = cash flow generated from operations (incl NWC CF) – CAPEX & capitalized development expenses Free operating cash flow breakdown 706 1238 1177 575 -104 167 -342 344 392 -491 -582 167 989 -1,000 -500 0 500 1,000 1,500 €m 2020 2021 344 2022 332 2023 384 2024 -436 -416 873 -885 CF from operations (before NWC CF) NWC CF Capex & Dev Cap Free CF from operations
Page 25
967 384 -159 Net financial debt Leverage ratio of 1.87x LTM adj EBITDA 25Umicore - Full-Year Results 2024 Net cash flow bridge (€ mn) • Net financial debt of € 1.4 bn • Leverage ratio of 1.87x LTM adj EBITDA • Significant CAPEX decrease (-35% YoY) • Equity injection to IONWAY, joint venture with PowerCo, of € 175 mn in 2024 CF from operations (after WC) -582 Capex & Dev Cap Free Operating CF -114 Taxes -49 Net interest -193 Acquisitions -192 Dividends Umicore sharehold. 5 Other (FX, lease, liabilities, etc.) Change in reported net financial debt • Projected another € 100 mn in EBITDA contribution from efficiency measures in 2025 on top of 2024 achievements • Anticipated 2025 CAPEX decrease vs 2024 (-20% YoY) • Equity injection to IONWAY: € 250 mn in Jan. 2025 out of the € 400 mn anticipated for 2025
Page 26
26 Strong liquidity and well-balanced debt portfolio Well-balanced debt profile • Continued access to debt markets, with €0.8 bn long-term debt raised in 2024 • € 3.4 bn gross debt, with long-term debt at fixed-rate • Weighted average duration of 5.6 years after convertible bond repayment Umicore - Full-Year Results 2024 Strong liquidity position • € 2 bn cash position at year-end • € 1.1 bn of committed long-term credit facility, fully undrawn, complemented by large uncommitted credit lines • Solid and stable pool of lenders 0 100 200 300 400 500 600 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Covered by EIB & USPP ‘24 Convertible Bond US Private Placement Schuldschein European Investment Bank (EIB) Loan
Page 27
Hedging of strategic metals exposure Increase visibility and reduce volatility of future earnings 27Umicore - Full-Year Results 2024 • Substantial portion of our expected structural price exposure covered up to 2028 and initiated first hedges for 2029 • Further strengthening our strategic metal hedging approach to reduce volatility, increase visibility of future cash flows and protect future earnings from exposure to specific precious metal prices Hedged position at 30/06/2024 Hedged position at 28/01/2025 RhodiumPalladiumPlatinum GoldSilver 0 0.2 0.4 0.6 0.8 1 1.2 0% 20% 40% 60% 80% 100% 2025 2026 2027 2028 2029 0 0.2 0.4 0.6 0.8 1 1.2 0% 20% 40% 60% 80% 100% 2025 2026 2027 2028 2029 0 0.2 0.4 0.6 0.8 1 1.2 0% 20% 40% 60% 80% 100% 2025 2026 2027 2028 2029 0 0.2 0.4 0.6 0.8 1 1.2 0% 20% 40% 60% 80% 100% 2025 2026 2027 2028 2029 0 0.2 0.4 0.6 0.8 1 1.2 0% 20% 40% 60% 80% 100% 2025 2026 2027 2028 2029
Page 28
Outlook 2025 4 Full-Year Results 2024
Page 29
The global economic landscape continues to be disrupted by persistent geopolitical tensions leading to limited visibility on end market demand. Umicore is navigating this volatile environment by maintaining its focus on resilience, adaptability, and efficiency across the Group. Against this backdrop, Group adj. EBITDA is expected to be in the range of € 720 million to € 780 million. These projections are based on the current market conditions and geopolitical landscape as of the date of publication. The provided outlook for 2025 does not include any assumptions on the potential impact of the introduction of tariffs. Outlook 2025 Based on the current limited market visibility and the delayed ramp-up of customer contracts, adj. EBITDA of the Battery Materials Business Group is expected to remain roughly in line with the previous year, as anticipated. It is anticipated that Catalysis will continue to benefit from Automotive Catalysts’ strong market position as well as its continued efforts to maximize business value. As a result, 2025 adj. EBITDA of Catalysis is expected to be around the level of the outstanding performance of the previous year. Assuming current metal prices are to prevail, and considering the current metal hedges in place, the 2025 adj. EBITDA for the Recycling Business Group is projected to be below the level of 2024. The decrease in earnings is mainly attributed to the anticipated gradual roll-off of favorable precious metals price hedges in the Precious Metals Refining business, which will be partially compensated by efficiency measures and a robust underlying operational performance. For Specialty Materials, adj. EBITDA is expected to benefit from increased efficiency measures, as well as strong performance in specific end markets. This is expected to result in a slight increase in 2025 adj. EBITDA versus 2024. Corporate costs are anticipated to be lower in 2025 compared to 2024. Group capital expenditures for 2025 are anticipated to be 20% lower versus 2024. This excludes the equity contributions to the IONWAY joint venture with PowerCo. 29Umicore - Full-Year Results 2024 BATTERY MATERIALS CATALYSIS RECYCLING SPECIALTY MATERIALS
Page 30
Wrap-up 5 Full-Year Results 2024
Page 31
Umicore INTERNAL document Umicore Capital Markets Day 27th March, London (p.m.) Outlining Umicore’s value creation potential and essential role in today’s society Outcomes of the strategic review and mid-term plan for Battery Materials Mid-term objectives for Catalysis, Recycling & Specialty Materials Umicore - Full-Year Results 2024 31 Sobering and intense year marked by significant headwinds Despite challenging context and slowdown of EV growth, solid performance from foundation businesses Decisive actions on capital discipline, efficiency and cost measures Committed to a solid balance sheet Determined to lay the groundwork for a solid path forward
Page 32
Q&A 7 Full-Year Results 2024
Page 33
Thank you! Investor Relations contacts: 33 Subscribe to our press releases SENIOR INVESTOR RELATIONS MANAGER Eva Behaeghe Eva.behaeghe@eu.umicore.com Eva.behaeghe@eu.umicore.com Caroline.kerremans@eu.umicore.com Caroline.kerremans@eu.umicore.com Caroline Kerremans HEAD OF INVESTOR RELATIONS Umicore - Full-Year Results 2024
Page 34
Glossary Adjusted EBIT EBIT - EBIT adjustments including total other income, income taxes, depreciation and amortization, and excluding non-recurring, irregular and one-time items Adjusted EBIT margin Adjusted EBIT of fully consolidated companies / revenues excluding metals Adjusted EBITDA Adjusted EBIT + adjusted depreciation and amortization of fully consolidated companies Adjusted items Adjusted items are the items that are considered by management not to relate to items in the ordinary course of activities of the Group. They are presented separately as they are important for the understanding of users of the consolidated financial statements of the performance of the Umicore Group. Adjusted items relate to: • Restructuring measures, • Impairment of assets, and other income or expenses arising from events or transactions that are clearly distinct from the ordinary activities of the company, • Sale of business activities or environmental provisions related to historic pollution and environmental remediation of closed sites Average capital employed For half years: average of capital employed at start and end of the period; For full year: average of the half year averages Average number of shares outstanding • Basic: average number of outstanding shares • Diluted: average number of outstanding shares + number of potential new shares to be issued under the existing stock option plans x dilution impact of the stock option plans Closed loop For Umicore a “closed loop” involves taking back secondary materials from customers (e.g. production residues) or End-of-Life materials (e.g. used mobile phones, automotive catalysts). The recovered metals are then fed back into the economic cycle Effective adjusted tax rate Adjusted tax charge / adjusted profit (loss) before income tax of fully consolidated companies Return on capital employed (ROCE) Adjusted EBIT / average capital employed Revenues (excl. Metals) All revenue elements less the value of the following purchased metals: Au, Ag, Pt, Pd, Rh, Co, Ni, Pb, Cu, Ge and also incl. Li, Mn as of 2021. In order to neutralize distortions from fluctuating metal prices and precious metal prices in particular, Umicore uses revenues excluding the value of purchased metals rather than turnover (which include the value of the purchased metals) to track its performance. This is an industry practice followed by direct peers with similar activities. Consult the full glossary on the Umicore website: https://www.umicore.com/en/investor-relations/glossary/ Umicore - Full-Year Results 2024 34
Page 35
` Financial calendar 35Umicore - Full-Year Results 2024 21 March 2025 24 April 2025 28 April 2025 29 April 2025 30 April 2025 1 August 2025 Publication of the Annual Report 2024 Annual General Meeting Ex-dividend trading date Record date for the dividend Payment date for the dividend Half Year Results 2025