a world of possibilities Annual General Meeting

Transcription

1 Creating Add image from AR cover a world of possibilities Annual General Meeting

2 Overview Economic review & Q1 update 2012 Great place to work Eco-efficiency Stakeholder engagement Governance review 2

3 Economic review

4 Highlights Strong revenue growth across segments Record earnings: 416 million recurring EBIT & 2.69 recurring EPS Strong operating cashflows lead to net debt reduction Step up in capex and R&D in line with Vision 2015 Share buyback of 93 million Proposed dividend of 1.00 per share 4

5 Record revenues and earnings 2,500 2,000 1,500 1, (in million) Revenues Revenues up 15% Double digit growth in most business units Recurring EBIT up 21% Strong performance in Catalysis and Recycling businesses REBIT in Energy Materials and Performance Materials affected by start-up costs, currency fluctuations and market conditions ROCE at 18.6% Recurring EBIT H1 H2 Restated in 2004, 2006 and 2008 for discontinued operations in following year 5

6 Continued investment in growth projects R&D R&D spend of 157 million More than 6% of revenues Efforts stepped up in Recycling (UHT pilot), Energy Materials ((H)EV applications) and Catalysis (HDD) Capex reached 213 million High investments in Automotive Catalysts, Recycling and Rechargeable Battery Materials Further increase in coming year anticipated in line with Vision Capex H1 H2 Restated in 2004, 2006 and 2008 for discontinued operations in following year R&D restated for scope adjustment in

7 Some key strategic milestones New investments for light and heavy duty catalysts & testing infrastructure Rechargeable Battery Materials investments in Asia New rotary targets introduced in Thin Film Products Successful steps in internationalization of Performance Materials and developing new product niches Commissioning of new UHT plant in Hoboken and trialling of new recycling feeds 7

8 EPS at record level Full year dividend proposed at 1.00 Recurring EPS Dividend (in / share) (in / share) H1 H2 H1 H2 Dividend interim dividend Restated in 2004, 2006 and 2008 for discontinued operations in following year (Proposed dividend for 2011) Restated for discontinued operations in 2004, 2006 and

9 Shareprice evolution 4,500, ,000,000 3,500,000 3,000, % in % in 2012 ytd ,500, ,000, ,500, ,000, , Umicore average daily trading volume (year-to-date in 2012) Umicore share price Bel 20 index (indexed) Dow Jones Specialty Chemicals index (indexed) 9 0

10 2012 Q1 trading update

11 2012 Q1 highlights Strong performance maintained despite economic slowdown in certain markets and regions Revenue growth of 11% REBIT margins negatively impacted by Depreciation & start-up costs from new investments Effect of lower prices on recycling margins Highly positive cashflows Several new capital investments projects initiated 11

12 2012 full year outlook Recurring EBIT expected to be between million Higher depreciation charges linked to new investments largely account for differential with 2011 recurring EBIT of 416 million Recurring EBITDA expected in million range compared to 2011 recurring EBITDA of 553 million 12

13 New investments announced in Q1 Expansion of technology / testing centre for Automotive Catalysts in Brazil New zinc chemical plant in Changsha, China Expansion of zinc oxide in Goa, India Increased silver recycling capacity in Bangkok, Thailand Biological water treatment facility in Hoboken, Belgium Dismantling centre for automotive rechargeable batteries in Maxton, USA 13

14 Great place to work

15 Highlights 14,844 5,018 Total workforce 15,450 5,337 13,728 4,415 14,386 14,572 4,828 4,408 The number of employees increased by 186, up 1.3% 9,826 10,113 9,313 9,558 10,164 Safety performance was stable compared to previous years New safety initiatives are in progress, aimed at creating a zero accident workplace Safety performance Accident frequency rate Accident severity rate We were recognized with Top Employer status in Belgium, France and Germany We signed a new framework agreement with the international unions

16 Eco-efficiency

17 Highlights We made strong progress towards our 2015 objectives 100 CO2e reduction -12% -14% -20% Our CO 2 e emissions for the same scope of activities were 14% below those of our 2006 reference year The impact of metals emissions were reduced beyond our target of 20% for both water and air We have further refined our methodology for understanding and measuring the sustainability of our products and services 2006 base target 100 Metals emission reduction (impact) -12% -14% -20% -31% -39% 2009 base target to water to air 17

18 Stakeholder engagement

19 Highlights We implemented our Sustainable Procurement Charter throughout the business and started an intensive supplier engagement process thousand 1,451 Donations 1,106 1,009 1,751 We intensified the engagement with the communities around our sites 202 Community investment / donations reached a record level Cash donations Donations in kind Staff freed time We entered into a 3-year partnership with UNICEF 19

20 Sustainability recognition Top 10 world s most sustainable corporations, Corporate Knights Ranked as one of the world s most ethical companies by Ethisphere Included in Green Index by WWF, Living Planet Fund Management Company & Cheuvreux Long-standing component of FTSE4Good index & other ethical/sustainable development indices such as the ECPI Ethical EMU Index 20

21 Governance review

22 Corporate governance Some key topics discussed by the Board in 2011: Investment projects & review of Umicore technologies Board and ExCom succession Strategic review of M&A and human resources Umicore s growth in Japan, including field trip 7 full Board meetings in % attendance for full Board meetings 94 % attendance for all committees A detailed review of Board performance, size and composition took place in June

23 Executive remuneration: policy & principles Compensation & benefits package includes Fixed component reflecting the level of responsibility Variable (cash bonus) with 50% deferred over a total of three years Share-based incentives: stock grant + options (both with lock up of three years) Pension plan and other benefits Variable scheme ensures rewards that reflect individual and Group-level performance (ROCE*) and covers economic, social and environmental performance as well as adherence to Group values Share-based incentives further align the remuneration with the interests of shareholders Total remuneration packages for CEO and ExCom members are regularly benchmarked to ensure that they are in line with market practice * ROCE range is from 7.5% (= score of 0%) and maximum 17.5% (score of 100%) 23

24 Executive remuneration 2011 Shares & options held by ExCom at end 2011 Outstanding options: 863,125 (strike price range of to 39.25) Total number of shares held by Executive Committee members at end 2011: 241,000 CEO base salary +4% (since 2008), variable +6% * ExCom base salary +1%, variable +11% * 2012: rebalancing of fixed, variable and stock-based remuneration for ExCom in line with the market and maintaining the value of total package(s) CEO fixed 500, ,000 variable 240, ,000 deferred from ,000 Total gross cash remuneration 740, ,000 Non-cash elements pension 225, ,808 other 28,196 30,747 value of shares granted 1 113, ,000 options (value at grant) 462, ,200 ExCom 2 fixed 1,918,990 2,005,260 variable 572, ,000 deferred from ,000 Total gross cash remuneration 2,491,490 2,660,260 Non-cash elements pension 1,312, ,738 other 420, ,054 value of shares granted 1 624, ,530 options (value at grant) 771,000 1,662,000 1 Lock-up of 3 years 2 Excluding CEO ; 2011 includes L. Vandervelden for 3 months * excluding 2010 deferred variable remuneration, paid out in

25 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

26 Creating a world of possibilities Annual General Meeting