Overview. Outlook Portfolio realignment. Business review Financial review Questions

Transcription

1 214 results

2 Overview Outlook 215 Portfolio realignment Business review 214 Financial review 214 Questions 2

3 Umicore expects profitability to improve in 215 Recycling Energy Materials Catalysis Performance Materials Supply conditions are anticipated to be broadly similar to 214. The expected downtime due to the expansion investments in Hoboken should be compensated by an increased underlying throughput Revenues and profitability are set to increase further reflecting the contribution of recently acquired activities as well as demand growth in all business units The ramp-up of Heavy Duty Diesel (HDD) catalyst production in Europe and China and further growth in demand for emission abatement for light duty vehicles should drive revenues and earnings higher for Catalysis in 215 Revenues are expected to grow broadly in line with GDP 3

4 Portfolio realignment Preparations underway for eventual divestment of Zinc Chemicals & Building Products: significant improvement of overall performance and recent investments placing them in a strong position better growth opportunities in an environment that is more aligned with their respective products, services and applications Looking for opportunities to accelerate growth in Electro-Optic Materials & Thin Film Products through alliances or strategic partnerships Intention to implement portfolio realignment by the end of 216, subject to market opportunities 4

5 Business review 214

6 Catalysis Revenues (excluding metal) 1,2 1, (in million ) Revenues up 6% and recurring EBIT up 13%: Increases in Automotive Catalysts: ramp-up of HDD catalyst production in Europe and China Higher revenues for LDV catalysts, despite unsupportive mix Volume growth in line with global market Unsupportive mix in Europe and North-America Outperforming the growing Chinese market Lower order levels and earnings in Precious Metals Chemistry Recurring EBIT H1 H2 6

7 Catalysis Nowa Ruda: H1 216 New production facility Hanau: H2 214 Capacity expansion for metal deposition commissioned Incheon: H2 215 New technology development center Tulsa: H1 214 New plant commissioned Suzhou: H1 214 New production capabilities for HDD operational Florange: H2 214 Third SCR line for HDD operational Precious Metals Chemistry Automotive Catalysts Pune: H2 214 New plant commissioned Hemaraj: H2 216 New production facility 7

8 Energy Materials Revenues (excluding metal) (in million ) Revenues up 11% and recurring EBIT up 59%: Integration of recent acquisitions in Cobalt and Specialty Materials and higher sales volumes in ceramics & chemicals Strong volume growth in Rechargeable Battery Materials, mainly driven by demand for high-end portable electronics Higher sales volumes in Electro-Optic Materials and Thin Film Products Recurring EBIT H1 H2 8

9 Energy Materials Olen: 215 Expansion for Co fine powders Cheonan and Jiangmen: 214 Production capacity expansions completed Wickliffe: H2 214 Acquisition of CP Chemicals Monza: 1 January 215 Full ownership of Todini and Co Rechargeable Battery Materials Cobalt & Specialty Materials Thin Film Products Qingyuan: H1 214 JV with First Rare Materials 9

10 Performance Materials Revenues (excluding metal) (in million ) Recurring EBIT Revenues down 3%; Recurring EBIT up 12% Stable revenues in Building Products: higher volumes in Europe offset by lower overseas demand Stable revenues in Electroplating: lower demand for technical applications compensated by higher revenues in other product groups Lower demand in Platinum Engineered Materials and Technical Materials Higher revenues in Zinc Chemicals despite a lower contribution from its recycling activities Higher revenues in Element Six Abrasives, driven by market share gains, a favourable product mix and operational efficiency improvements H1 H2 1

11 Performance Materials Viviez: H1 214 New plant for surface-treated products commissioned Changsha: H1 215 New plant for Zn powders Jiangmen : H1 214 JV with JCX Electroplating Zinc Chemicals Building Products Pasir Gudang: H1 214 Capacity expansion to serve Asia-Pacific completed 11

12 Recycling Revenues (excluding metal) 1, (in million ) Recurring EBIT Revenues down 1% and recurring EBIT down 3% due to lower metal prices; ROCE at 4% In Precious Metals Refining: Lower metal prices Robust availability of supply volumes although overall mix not as supportive Higher processed volumes after the first phase of expansion Lower contribution from the recycling activities in Jewellery & Industrial Metals Less favourable conditions for Precious Metals Management H1 H2 12

13 Recycling Hoboken 1. 2 nd phase of sampling facility expansion H Commissioning of biological water treatment H Expansion of capacity by 4% Manaus: H1 214 Expansion of Ag recycling Bangkok: Ongoing expansion of Ag recycling Precious Metals Refining Jewellery & Industrial Metals Pforzheim: H2 214 Expansion of Ag recycling 13

14 Employees and Safety People Total number of employees increased by Increase in fully consolidated companies primarily in Catalysis and Energy Materials Decrease in associated companies mainly in the JV s of Energy Materials and following the restructuring in Element Six Abrasives Safety performance Two fatalities in January 214 Accident frequency rate at % of sites accident-free Fully consolidated Associates In addition to existing safety initiatives, a process safety program has been launched 14

15 214 financials

16 Profitability impacted by lower Recycling margins Recurring EBITDA (in million ) Recurring EBITDA down 4% Lower metal prices affecting Recycling margins Recurring EBITDA up in Catalysis, Energy Materials and Performance Materials Currency headwinds Recurring EBIT down 1% Higher depreciation charges linked to the recent growth investments ROCE at 12.2% Recurring EBIT H1 H2 16 Restated in 24, 26 and 28 for discontinued operations in following year

17 Resilient free cashflows 7 Operating cashflow (in million ) Further reduction of working capital 6 Operating cashflow at 43 million Substantial growth investments Capex of 22m Acquisitions in Energy Materials Net cashflow before financing at 14 million Operating cashflow Working capital changes * Operating cashflow = cashflow generated from operations less change in working capital requirement plus dividend and grants received 17

18 Expenditures for growth 35 Capex & acquisitions (in million ) Capex 22 million including significant growth projects: 3 22 First phase of investments completed to expand capacity in Hoboken Ongoing expansions in Catalysis and Energy Materials Acquisitions in Energy Materials: 35 million 1 CP Chemicals 5 Todini and Co 28 Capex Acquisition of new subsidiaries R&D expenditures slightly up to 143 million (6 % of revenues) with higher spending in Energy Materials and Recycling The application of the Capex definition has been reviewed and figures have been restated for comparability reasons. 18

19 Cash returns to shareholders Data per share Stable dividend proposed at 1. per share (in / share) % 7% Corresponds to 56% payout ratio based on recurring EPS of 1.79 per share % % % % 34% % 57% % 37% % 51% % 5% 4% 3% 2% 1% % Purchased 2 million treasury shares in 214, amounting to 72 million Total cash returned to shareholders (dividend + buybacks) of 187 million or 43% of cashflow generated by operations Cancellation of 8 million shares in September 214 Recurring EPS Dividend Payout ratio Restated for discontinued operations in 24, 26 and 28 * Dividend proposed for

20 Net financial debt Net financial debt evolution (in million ) Working capital changes Capex -13 Dev Cap Net debt 31/ Operating cashflow Net acquisitions / disposals Taxes Net interest Dividends -64 Share buybacks -31 Other Net debt 31/ * Operating cashflow = cashflow generated from operations less change in working capital requirement plus dividend and grants received 2

21 Capital structure remains strong Net financial debt Net financial debt 298 million 1, (in million ) Corresponds to : 1, %.5 x Average net debt to recurring EBITDA ratio 1, 31% 34% % net gearing ratio % 333 2%.8 11% 19% % % % % Average weighted net interest rate down to 1.56 % Net financial debt Gearing ratio (debt / debt+equity) Average net debt / recurring EBITDA Restated for discontinued operations in 24, 26 and 28 21

22 Non-recurring elements Non-recurring items (in million ) 214 Restructuring charges & provisions (2.1) Environmental charges & provisions (7.1) Impairments on metal inventory 8.2 Other (2.6) Non-recurring EBIT (21.6) Non-recurring tax result 1.4 Non-recurring minority result.1 Net non-recurring result (21.8) Net IAS 39 effect (.7) Total impact on net result (22.5) Non-recurring EBIT of -22 million Total negative impact on net result of 23 million 22

23 Wrap-up 214 earnings fully in line with guidance Long term growth investments on track Positive outlook for 215 Portfolio realignment process underway 23

24 Q&A

25 Financial calendar 28 April 215 Annual General Meeting 3 April 215 Ex-dividend trading date 4 May 215 Record date for dividend 5 May 215 Payment date for dividend 31 July 215 Half Year Results September 215 Capital Markets Day - London 22 October third quarter trading update Forward-looking statements This presentation contains forward-looking information that involves risks and uncertainties, including statements about Umicore s plans, objectives, expectations and intentions. 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. 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. As a result, neither Umicore nor any other person assumes any responsibility for the accuracy of these forward-looking statements. 25

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