Annual General Meetings of Shareholders · Réélection en qualité d’administrateur indépendant...
Transcript of Annual General Meetings of Shareholders · Réélection en qualité d’administrateur indépendant...
25 April 2019
Annual General Meetingsof 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 of the business interms of earnings
Turned sustainability into a greater competitive edge
Rebalanced portfolio & earnings contributions
Significant progress toward 2020 ambitions
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A focused and balanced portfolio
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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
RECURRINGEBIT
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 emissionsto water*
- 46%
Metal emissionsto air*
- 29%
Energy consumption*
42% Primary materials58% Secondary & end-of-life materials
RESOURCE EFFICIENCY
42%
58%
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Great place to work
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55% Europe28% Asia-Pacific15% North & South America2% 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 rateAnnual General Meetings of Shareholders 2019 8
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Umicore expects recurring EBIT for the full year 2019to 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
of 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 20191Umicore 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 EVsSimilar 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
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In Recycling, maintenance shutdown completed successfullyGrowing complexity of waste streamsExpansion in Precious Metals RefiningImproved 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 regionsBenefits 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
of 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% of global production
Umicore is one of the largest cobalt buyers in the world
of which<15%
goes toEV 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 official structure
Hand-picked cobalt: manually-intensive methods, without any protective equipment
Issues with human rights, child labor, occupational 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 PWCCompliance 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
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a critical additional source of supply
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Umicore Battery Recycling pilot plant in Hoboken, Belgiumhas had a capacity of 7,000 t/yearor about 250 million mobile phone batteries/year since 2011
Governance
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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 201888% attendance for full board meetings93% 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 2018Fixed 680,000 700,000 2,435,000 2,306,250Variable for the year 50% 220,000 220,000 790,000 662,500Deferred variable 25% 130,950 144,450 436,500 481,500Variable deferred from year prior to prior year 133,650 - 408,375 -Total gross cash remuneration 1,164,600 1,064,450 4,069,875 3,450,250Non-cash elements Pension 171,408 168,397 734,937 661,608Other 46,223 51,631 141,735 123,293Value of shares granted 425,360 354,432 1,815,960 1,381,284Options (value at grant) 583,500 1,033,500 816,900 1,266,038TOTAL 2,391,091 2,672,410 7,579,407 6,882,473
Executive remuneration 2018
2018
1,022,100 shares1,506,500 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’ meeting1. 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’ meeting1. Approval of change of control clause
Ordinary general meetingAssemblée générale ordinaireGewone algemene vergadering
First resolution
Approval of the remuneration report
Première résolution
Approbation du rapport de rémunération
Eerste besluit
Goedkeuring van het remuneratieverslag
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Second resolution
Approval of the statutory annual accounts of the company for the financial year ended on 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 meetingAssemblée générale ordinaireGewone 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 meetingAssemblée générale ordinaireGewone algemene vergadering
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Fourth resolution
Discharge to the statutory auditor
Quatrième résolution
Décharge au commissaire
Vierde besluit
Kwijting aan de commissaris
Ordinary general meetingAssemblée générale ordinaireGewone algemene vergadering
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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 meetingAssemblée générale ordinaireGewone algemene vergadering
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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 periodevan drie jaar
Ordinary general meetingAssemblée générale ordinaireGewone algemene vergadering
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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 meetingAssemblée générale ordinaireGewone algemene vergadering
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Special general meetingAssemblée générale spécialeBijzondere 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
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