No Slide · PDF file · 2015-03-27Chemistry H1 H2 399 275 339 391 453 453 467 314...
Transcript of No Slide · PDF file · 2015-03-27Chemistry H1 H2 399 275 339 391 453 453 467 314...
2014 results
Overview
• Outlook 2015
• Portfolio realignment
• Business review 2014
• Financial review 2014
• Questions
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Umicore expects profitability to improve in 2015
Recycling Energy Materials Catalysis Performance Materials
Supply conditions are
anticipated to be
broadly similar to
2014. 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 2015
Revenues are expected
to grow broadly in line
with GDP
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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 2016, subject to market opportunities
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Businessreview2014
Catalysis
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
H1 H2
399
275 33
9
391 45
3
453
467
314
311 35
9 424
407
414
45071
2
586 69
9 814
860
867
917
0
200
400
600
800
1,000
1,200
2
008
2
009
2
010
2
011
2
012
2
013
2
014
Revenues (excluding metal)(in million €)
57
-14
39
46 49 44 41
7
17
39
44 42
29
41
64
31
78
89 91
73
83
-20
0
20
40
60
80
100
120
Recurring EBIT
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Catalysis
Nowa Ruda: H1 2016
New production facility
Hemaraj: H2 2016
New production facility
Incheon: H2 2015
New technology development center
Suzhou: H1 2014
New production capabilitiesfor HDD operational
Tulsa: H1 2014
New plant commissioned
Florange: H2 2014
Third SCR line for HDD operational
Precious Metals Chemistry
Automotive Catalysts
Pune: H2 2014
New plant commissioned
Hanau: H2 2014
Capacity expansion for metal deposition commissioned
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Energy Materials
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
H1 H2
205
154
173
180
184
200 22
3
190
151 17
4
178
183 20
3 222
395
305 34
8
358
366 40
3 445
0
100
200
300
400
500
2
008
2
009
2
010
2
011
2
012
2
013
2
014
Revenues (excluding metal)(in million €)
36
7
24 21
14 12
20
21
17
20 20
4 13
20
57
24
44 41
18
25
39
0
20
40
60
80
Recurring EBIT
8
Energy Materials
Cheonan and Jiangmen: 2014
Production capacity expansions completed
Wickliffe: H2 2014
Acquisition of CP Chemicals
Rechargeable Battery Materials
Cobalt & Specialty Materials
Thin Film Products
Monza: 1 January 2015
Full ownership of Todini and Co
Qingyuan: H1 2014
JV with First Rare Materials
Olen: 2015
Expansion for Co fine powders
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Performance Materials
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
257
208
219 27
1
267
263
252
226
196 22
7 253
256
247
241
483
404 44
6 524
523
510
493
0
100
200
300
400
500
600
700
2
008
2
009
2
010
2
011
2
012
2
013
2
014
Revenues (excluding metal)(in million €)
52
16
47
39
31 29 33
36
21
29
28
24 26
28
88
37
75
67
55 55
61
0
20
40
60
80
100
120
Recurring EBIT
10
Performance Materials
Pasir Gudang: H1 2014
Capacity expansion to serve Asia-Pacific completed
Changsha: H1 2015
New plant for Zn powders
Viviez: H1 2014
New plant for surface-treated products
commissioned
Electroplating
Zinc Chemicals
Building Products
Jiangmen : H1 2014
JV with JCX
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12
Recycling
Revenues down 10% and recurring EBIT down 30% due to lower metal prices; ROCE at 40%
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
95
66
102 13
3
122
103
68
106
52
93
134
137
97
71
202
118
195
267
259
200
139
0
50
100
150
200
250
300
350
Recurring EBIT
253
222
254 31
0
342
307
268
255
204 25
2 327 339
283
265
508
427 50
6 637 681
590
533
0
200
400
600
800
1,000
2
008
2
009
2
010
2
011
2
012
2
013
2
014
Revenues (excluding metal)(in million €)
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Recycling
Pforzheim: H2 2014
Expansion of Ag recycling
Hoboken
1. 2nd phase of sampling facility expansion H1 20142. Commissioning of biological water treatment H1 20143. Expansion of capacity by 40% 2014 - 2016
Bangkok: 2014 - 2015
Ongoing expansion of Agrecycling
Precious Metals Refining
Jewellery & Industrial Metals
Manaus: H1 2014
Expansion of Ag recycling
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Employees and Safety
Total number of employees increased by 17
• 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 2014
• Accident frequency rate at 2.16
• 84% of sites accident-free
In addition to existing safety initiatives, a process safety program has been launched
9.89
5
9.82
8
9.05
3
9.82
6
10.0
79
9.31
5
9.55
8
10.1
64
10.3
96
10.1
90
10.3
68
4.13
1
4.31
4
4.87
9
5.01
8
5.33
4
4.40
5
4.82
8
4.40
8
4.04
2
3.86
7
3.70
6
14.0
26
14.1
42
13.9
32
14.8
44
15.4
13
13.7
20
14.3
86
14.5
72
14.4
38
14.0
57
14.0
74
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
2
004
2
005
2
006
2
007
2
008
2
009
2
010
2
011
2
012
2
013
2
014
Fully consolidated Associates
People
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2014 financials
Profitability impacted by lower Recycling margins
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 10%
• Higher depreciation charges linked to the recent growth investments
ROCE at 12.2%
H1 H2
Restated in 2004, 2006 and 2008 for discontinued operations in following year
218
188 22
4 255
269
107
247 28
1
266
240
221
208
184 21
0 216
198
156
222 27
2
258
222
221
426
372 43
4 471
467
263
469 55
3
524
463
442
0
100
200
300
400
500
600
700
2
004
2
005
2
006
2
007
2
008
2
009
2
010
2
011
2
012
2
013
2
014
Recurring EBITDA(in million €)
155
122 17
0 199
215
50
186 21
5
192
163
138
126
111
159 16
0
140
97
156
202
181
141
135
280
233
329 35
9
355
146
343
416
372
304
274
0
100
200
300
400
500
Recurring EBIT
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Resilient free cashflows
Further reduction of working capital
Operating cashflow at € 403 million
Substantial growth investments
• Capex of € 202m
• Acquisitions in Energy Materials
Net cashflow before financing at € 140 million
429
254
398
598
475
441
403
17
202
-247
-49
34
97
56
-300
-200
-100
0
100
200
300
400
500
600
700
2
008
2
009
2
010
2
011
2
012
2
013
2
014
Operatingcashflow
Workingcapitalchanges
Operating cashflow(in million €)
* Operating cashflow = cashflow generated from operations less change in working capital requirement plus dividend and grants received
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Expenditures for growth
Capex € 202 million including significant growth projects:
• First phase of investments completed to expand capacity in Hoboken
• Ongoing expansions in Catalysis and Energy Materials
Acquisitions in Energy Materials: € 35 million
• CP Chemicals
• Todini and Co
R&D expenditures slightly up to € 143 million (6 % of revenues) with higher spending in Energy Materials and Recycling
216
182
157
196
236
280
202
1
11
22
35
0
50
100
150
200
250
300
350
2
008
2
009
2
010
2
011
2
012
2
013
2
014
Capex Acquisition of new subsidiaries
Capex & acquisitions(in million €)
The application of the Capex definition has been reviewed and figures have been restated for comparability reasons.
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Cash returns to shareholders
Stable dividend proposed at € 1.00 per share
Corresponds to 56% payout ratio based onrecurring EPS of € 1.79 per share
Purchased 2 million treasury shares in 2014, amounting to € 72 million
Total cash returned to shareholders (dividend + buybacks) of € 187 million or 43% of cashflowgenerated by operations
Cancellation of 8 million shares in September 2014
1.41
1.21
1.73 1.
80 1.93
1.24
1.40
2.69
2.47
1.96
1.79
0.33
0.37
0.42
0.65
0.65
0.65 0.
80
1.00
1.00
1.00
1.00
23%
31%
24%
36%34%
52%57%
37%41%
51%
56%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0.50
1.00
1.50
2.00
2.50
3.00
2
004
2
005
2
006
2
007
2
008
2
009
2
010
2
011
2
012
2
013
2
014
Recurring EPS Dividend Payout ratio
Data per share(in € / share)
Restated for discontinued operations in 2004, 2006 and 2008* Dividend proposed for 2014
19
Net financial debt
Net debt31/122013
Operatingcashflow
Workingcapital
changes
CapexDev Cap
Netacquisitions/ disposals
Taxes Netinterest
Dividends
Sharebuybacks Other
Net debt31/122014
-215
403
56 -202
-13 -58
-57
-3 -115
-64
-31
-298
-300
-250
-200
-150
-100
-50
0
50
100
150
200
250
300(in million €)
Net financial debt evolution
* Operating cashflow = cashflow generated from operations less change in working capital requirement plus dividend and grants received
20
Capital structure remains strong
585
515
813
140
333
177
360
267
222
215 29
8
31% 34
%
45%
10%
20%
11% 19
%
13%
11%
11%
15%
1.6
1.3
1.7
1.1
0.8
1.0
0.5 0.
6
0.5
0.4 0.
5
0
250
500
750
1,000
1,250
1,500
2
004
2
005
2
006
2
007
2
008
2
009
2
010
2
011
2
012
2
013
2
014
Net financial debt Gearing ratio (debt / debt+equity)
Average net debt / recurring EBITDA
Net financial debt
Restated for discontinued operations in 2004, 2006 and 2008
(in million €)
Net financial debt € 298 million
Corresponds to :
• 0.5 x Average net debt to recurring EBITDA ratio
• 15 % net gearing ratio
Average weighted net interest rate down to 1.56 %
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Non-recurring elements
Non-recurring EBIT of € -22 million
Total negative impact on net result of€ 23 million
Non-recurring items (in million €) 2014
Restructuring charges & provisions (20.1) 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 0.1
Net non-recurring result (21.8)
Net IAS 39 effect (0.7)
Total impact on net result (22.5)
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Wrap-up
• 2014 earnings fully in line with guidance
• Long term growth investments on track
• Positive outlook for 2015
• Portfolio realignment process underway
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Q&A
Financial calendar
28 April 2015 Annual General Meeting
30 April 2015 Ex-dividend trading date
4 May 2015 Record date for dividend
5 May 2015 Payment date for dividend
31 July 2015 Half Year Results 2015
2 September 2015 Capital Markets Day - London
22 October 2015 2015 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.
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