positioning for future growth in challenging timesumicore sources metals both on the market and from...
TRANSCRIPT
Positioning for future growth in challenging times
Positioning for future growth in challenging times
1999 2008
Revenues
(million
€) 865 2,124
Production
sites 32 85
Workforce 8,065 15,500
Umicore figures in a nutshell
2
Production
site in 2008
Production
site already
existing
in 1999
Former
production
site, existing
in 1999
Umicore’s approach
Umicore produces materials using some 20 different precious and specialty metals.
Umicore sources metals both on the market and from its own refining operations. The majority of the metals Umicore refines comes from secondary materials,
such as end-of-life materials or industrial waste streams.
Umicore seeks to develop market leadership in the niche application areas it serves.
Umicore’s products are application-driven,
requiring technological differentiation.
material solutionsMetals
Applicationknow-how
Recycling
Material
solutions
Chemistry
Material science
Metallurgy
3
Transformation lead to change in the business profile
Capital intensive
metal refiner
R&D intensive
materials technology
company
4
Revenues
1058 1036
1358
1902
1725
1919 1910
2124
2.7% 2.5%3.2%
4.8%5.7% 5.4% 5.8%
7.0%
8.7% 8.4%7.2%
8.0%
10.2%
16.8%
14.6%
10.5%
0
500
1,000
1,500
2,000
2,500
2001 2002 2003 2004 2005 2006 2007 2008
(in million €)
DiscontinuedUmicore
CoreUmicore
Capex /revenues
R&D /revenues
Advanced
Materials
Zinc
Specialties
Precious Metals
Products & Catalysts
Precious Metals
Services
#1
Cobalt & Germa-
nium
products
Top 2
Rechargeable battery materials
#1
Zinc building
products
#1
Zinc powders
Top 3
Automotive
catalysts
Top 2
LCD glass
equipment
#1 Precious metal
recycling
#4
PGM refining
Market leader in selected niche markets
47%47%20%20%
14%14% 19%19%
Revenues 20085
Half year results 2009Half year results 2009
7 August 20097 August 2009
Challenging business environment
5
•
Low end-user demand exacerbated by destocking in most industries globally
•
Global car production down 30% in H1; North-America, Japan and Europe most affected; Plant closures at several OEMs and destocking on-going
•
Sales of PCs were down some 14% in H1, while mobile phone sales decreased some 7% versus H1 2008 (-18% versus H2 2008)
•
Activity in the construction sector slowed by more than 20% H1/H1, notably in Western Europe
•
Although trending upwards, the prices of precious, base and specialty metals are much lower than in H1 2008
6
Decrease in revenues affects current profitability
Revenues (excluding metal)
510 529
883 861 844965
860
526
829
810 864 841
945
985
1115
1358
1693 1725 1685
1910
2100
0
500
1000
1500
2000
2500
2002 2003 2004 2005 2006 2007 2008 2009
(in million €)
H1 H2
Restated for discontinued operations in 2004, 2006 and 2008
Recurring EBIT
48 48
155
122
170
199215
50
49
98
126
111
159
160 140
7.4%8.3%
15.3%
13.6%
19.2%19.7%
17.9%
5.4%
98
146
280
233
329
359 355
0
100
200
300
400
500
2002 2003 2004 2005 2006 2007 2008 2009
(in million €)
H1 H2 ROCE
Restated for discontinued operations in 2004, 2006 and 2008Restated for discontinued operations in 2004, 2006 and 2008 (except for ROCE in 2008)
13
Strong cashflows
Net financial debt evolution
Net debt30/062009Net debt
31/122008
Operatingcashflow
Workingcapital
changes
Other(taxes,
acquisitions,disposals)
CapexFinancialcharges
Dividends(incl. sharebuybacks)
-329
+120
+153+11 -103
-17-74
-239
-400
-300
-200
-100
0(in million €)
Net cashflow before financing
+181
Net cashflow +90
14
Strong balance sheet
Net financial debt
743
577610
773
168
329
239254
118
620
438
510
0
200
400
600
800
1,000
2002 2003 2004 2005 2006 2007 2008 H12009
(in million €)
Securitisation Net debt, continued
Restated for discontinued operations in 2004
Gearing ratio
25%
33%
10%
20%
15%
10%
44%
34%
0%
10%
20%
30%
40%
50%
2002 2003 2004 2005 2006 2007 2008 H12009
Gearing ratio = debt / (debt+equity), continued
Restated for discontinued operations in 2004Restated for discontinued operations in 2004
15
Gross debt well spread
Gross debt
Bonds(maturity
2012)29%
Revolving credit facility
(maturity 2011-2013)
40%
Commercial paper15%
Other bank facilities
12%
Long-term loan
(maturity 2013)4%
•
Net interest charges reduced by 41% to € 8m, in line with lower debt level
•
Gross debt well spread with 73% longer-term (2011 and beyond)
11
Dealing with reduced demand
•
Umicore continues to adapt its production profile to the current
demand situation
•
Permanent workforce reduction in most affected activities•
Reduction by more than 500 in fully consolidated companies since
year start,
primarily in PMP&C
•
Reduction by more than 1000 at associate companies since year start,
primarily at Element Six Abrasives (not including recently-announced intention to cease manufacturing in Shannon)
•
Temporary measures in a number of other activities•
More than 1,000 people remain on reduced working time or temporary unemployment
•
Other measures such as overtime limitations, in-sourcing of contractor work
•
Working capital reductions
Umicore expects recurring EBIT for H2
to be of the same magnitude as in H1
Group outlook
3
•
Visibility in many end markets remains limited
•
Some improvement in demand in certain sectors, starting from a low base
•
Conditions in Precious Metals Services to weaken somewhat in H2
•
Usual seasonal effects anticipated in H2
•
Effect of cost reduction measures starting to be visible
14
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.
16
Focus on growth investments
•
Rechargeable battery materials plant expansion in Korea and China commissioned
•
Expansion of automotive catalysts test centre in Germany
•
Combined heat power generation facility in Olen reaching finalisation
•
Construction of germanium substrates plant in the US started
•
Building of jewellery materials and recycling plant in China completed
Capex
7864
51 54 50
69
91103
7478 94 91
58
84
125
151142 146 145
108
153
216
0
50
100
150
200
250
2002 2003 2004 2005 2006 2007 2008 2009
(in million €)
H1 H2
Restated for discontinued operations in 2004 and 2006
17
R&D efforts maintained
•
R&D / revenues at some 7%
•
More generic research in Group R&D increased
•
Some 80% of expenditure focused on Clean Technologies
•
R&D efforts planned to continue at similar level
R&D
5763
72 68
53
62
93
2.5%
3.2%
5.4%5.7% 5.8% 5.8%
7.1% 6.9%
31
48
104112 110
125
165
0
50
100
150
200
2002 2003 2004 2005 2006 2007 2008 2009
(in million €)
H1 H2 R&D / revenues
Restated for discontinued operations in 2004, 2006 and 2008
Clean Technologies (Clean Tech) a definition
17
Where can Umicore make the difference?
Energy
solutions
Recycling
solutions
Environmental
solutions
Clean Technologies
More with less
18
Materials for energy storage and
sustainable energy production
Materials for energy storage and
sustainable energy production
Addressing resource scarcity and emissions
by closing the materials loop
Addressing resource scarcity and emissions
by closing the materials loop
Technologies to mitigate environmental
impacts
Technologies to mitigate environmental
impacts
Creating value by reducing the use of rare and valuable
materials
Creating value by reducing the use of rare and valuable
materials
Clean technologies Emission control
•
Catalysts
•
For the automotive industry
Cars and heavy duty
•
For the agro-chemical industry
and other chemical processes
•
Drivers
•
Worldwide automotive production
•
Reduction of environmental pollution
•
Emission norms
Clean technologies Renewable energy generation
•
Materials for all solar cell types
•
Germanium substrates for space and new terrestrial applications
•
Pilot line for Si in construction in collaboration with Hydro (HyCore JV)
•
Materials (targets) for thin film solar cells
•
Drivers
•
Global energy demand
•
Reduction of environmental pollution and global warming
•
Government subsidies
•
Fuel cell materials
•
Development of fuel cell catalysts
•
Development of ‘Membrane Electrode Assemblies’
in collaboration with Solvay (SolviCore joint venture)
•
Drivers
•
Global energy demand
•
Reduction of environmental pollution and global warming
•
Research grants
Clean technologies Renewable energy generation & storage
Clean technologies (Renewable) energy storage
•
Rechargeable battery materials
•
Cathode materials for Li-Ion batteries
•
Cathode materials for NiCd
& NiMH
batteries
•
Drivers
•
Growth of portable electronics
•
New power applications
•
Reduction of environmental pollution and global warming
•
Electrical and hybrid vehicles (HEV, PHEV, BEV)
•
CO2
standards for cars
separator
anode
separator
cathode
Clean technologies Using sustainable sources
•
Majority of refining input comes
from secondary materials
•
End-of-life materials
•
Industrial by-products
•
Drivers
•
Scarcity of metals (reflected in metal prices)
•
Reduction of environmental pollution
•
Recycling legislation on e-scrap and batteries
What does Clean Tech mean for Umicore today?
Clean Technologies in Umicore
today represent
•
50% of revenues
•
80% of R&D expenditure
24
business group
advanced materials
•
Cobalt & Specialty Materials
•
Electro-Optic Materials
•
Thin Film Products
•
(Element Six Abrasives)
business unit
cobalt & specialty materials
Co supply & refining
business lines
rechargeable batteriesceramics & chemicals
tool materials
cobalt & specialty materials business card
•
largest BU in BG Advanced Materials
•
> 2100 people
•
12 industrial plants
•
3 R&D centres
(Olen, Bruges, Korea)
•
develops, manufactures and sells advanced chemical products
•
based on Co
•
recognized & historical leader in Co materials
•
active in 2/3 of all Co application domains
•
based on Ni
•
specialty materials for battery, plating, catalyst and ceramic applications
material solutions
Co Ni
Mn Cu Li Fe
Co- & Ni-based
powders, oxides &
chemicals
solid-state chemistry & ceramics synthesis
precursor synthesis through precipitation
•
all business lines are leaders
in their fields
•
making the difference by technology and/or service
→
very customer-driven
•
common core competences
are
•
market and application know-how:
customer is central in all the business decisions of CSM
•
metals management (Co, Ni, Mn, Li, …)
•
international plants of which some shared (multi BL or BU)
with some common processes (precipitation of precursors)
•
people
are key in CSM’s
organization with similar culture/business drive
cobalt & specialty materials business model & strategy
cobalt & specialty materials presence
Cheonan (S-Korea)
• ReBat cathode materials• ReBat materials R&D• 89 people
Shanghai (China)
• Co powders• 51 people• 75% Umicore
Gangzhou (China)
• Co precursors• Co refining• 840 people• 40% Umicore
Subic (Philippines)
• Ni precursors• Ni refining• 51 people
Olen (Belgium)
• headquarters• R&D centre• Co & Ni precursors• Co & Ni refining• 450 people
Fort Saskatchewan
• ultrafine Co powders• 58 people
Arab (USA)
• Co & Ni solutions• Ni recycling• 42 people
Maxton (USA)
• Co precursors• central US warehouse• 10 people
Brugge (Belgium)
• organic Co & other metal compounds
• 64 people
Blodelsheim (France)
• Cu clippings• 10 people
JiangMen (China)
• Ni(OH)2 powders• 380 people• 40% Umicore
• ReBat cathode materials• 3 people• 60% Umicore
Co supply & refining
• focus on sustainable supply• strong long-term partnerships with suppliers
• Code of Conduct (in particular for DRC)
Co supply
•
yearly mining output: 55,000-60,000 MT
•
by-product from
Cu mining
50%
•
by-product from
Ni & PGM mining
35%
•
primary mining
15%
• differentiated supply strategy• intermediates, scrap, recycling -> own refining
• Co metal feed
• hedging is key
Umicore strategy
Russia 9%
DRCongo >36%
Australia 6%
Zambia 8%
Cuba 6%
Canada 6%
Co mining players
Forrest* 9% Norilsk 9%
Zambia* 8% Camec 7%
Inco 7% Sheritt 7%
others 53%
* partially controlled by GlenCore (at ?????)
business line
tool materials
tool materials product & applications
supply metal product application market
Co Metal Co ChlorideCo 1000, Olen
Co oxalate
Diamond Tools
diamond tools
hard metals
battery (NiMH) e.g. for hybrid vehicles
valve seats
primary bonding material in hard metal (with WC) & diamond tools (with synthetic
diamonds)Co Powders
Co concentrates / intermediate products /Co residues
Pre alloy Co powders)
business line
ceramics & chemicals
supply metal product application market
ceramics & chemicals products & applications
Co residues
Co
Ni residues Ni salts
pigments ceramics & glass
adhesives
metal treatment
carboxylates
petrochemistry
plasticsCo salts
catalysts
plating
Co oxides
Ni
business line
rechargeable batteries
supply metal product application market
rechargeable batteries product & applications
Co
Ni residues
LiCo02
Ni
Li-ion rechargeable batteries
Portable electronics
Power tools
(P)HEV / EV
E-bikes
Co residues
material solutionsRecycling &
intermediatesLi NiCoMn oxide
Ni hydroxide
Ni-MH rechargeable batteries
Stationary power
business unit
electro-optic materials
Ge refining & recycling
business lines
opticssubstrates
electro-optic materials business card
•
world leader in customised germanium-based material solutions for infrared optics and opto-electronics applications
•
focus on high added value products and high volume markets
•
makes the difference through
•
innovation
•
technological base
•
recycling competencies & secured supply
•
effective customer support
material solutionsGe
IR optics
photovoltaics
photonics
metallurgy crystallography
moulding wafering
electro-optic materials production location
Olen (Belgium)
• Headquarters• Ge R&D centre• Ge refining & recycling• GeCl4• Ge substrates• Ge optics• 250 people
Quapaw (US)
• GeCl4 production• Ge & GASIR optics• 83 people
Dundee (UK)
• coating R&D centre• 19 people
Acigné (France)
• GASIR R&D centre• GASIR production• 10 people
added value / metal value = 20 – 25
•
within 10 years EOM reoriented its business from refining and primary transformation into high tech added value products
•
working towards worldwide production base close to customers through operations in Europe and North-America
electro-optic materials business strategy
added value / metal value = 0.25 – 2
Ge refining & primary transformation advanced transformation
Ge substrates GASIR® assembliesGeO2 GeCl4 Ge blanks
Ge supply & refining
Ge supply & refining global view
•
estimated yearly world primary refining output 100 MT
•
by-product of mainly zinc or coal mining
•
starting material can be as low as 0.5% Ge
•
supply from recycling adds ~20 MT
•
extremely important
•
due to scarceness of the material
•
due to relatively high price
Russia
China >50%
DRCongo
USA
Alaska
Umicore’s supply strategy
•
constant balance between supply and sales prognoses
•
>50% of supply needs covered by long term contracts, remainder spot contracts
•
own refining/recycling capacity allows choice in sourcing refined Ge,
concentrates or recyclables
Ge mining
business line
optics
supply metal product application market
Optics products & applications
mine residues e.g. Zn ores
Ge
recycling e.g. from optic fibres
GeCl4
GASIR optics
optic fibres optical networks
driver vision enhancement
preventive maintenanceIR cameras
surveillance & security
medical applicationsGe optics
business line
substrates
• in BL optics
supply metal product application market
Substrates products & applications
mine residues e.g. Zn ores
Ge
multi-junction solar cells
space satellites
Ge substrates
LEDs
computer processors
solid-state lighting
micro-electronics
solar power stations
Recycling e.g. from optic fibres
Substrates production flowsheet
terrestrial photovoltaics
•
Ge
wafer for high efficient concentrator photovoltaic systems
•
multijunction
solar
cells
above
35% efficiency,
based
on
germanium wafers
•
module efficiencies
of 28% are possible
•
Fresnel-lenses
or
mirrors
with
an
optical
concentration
factor up
to
1000x
•
target market
•
large
installations
from
100 kW to
5 MW
•
countries
with
high direct solar
radiation
Freiburg, 7 November 2006
Concentrator Photovoltaic Power Plants in Spain
In 2007 the so far largest concentrator photovoltaic power plant will be built in Spain. At several locations within the province of Castilla-La Mancha an overall power rating of 2.3 MW will be installed.
10 October 2006
SolFocus Signs Manufacturing Agreement with Moser Baer
SolFocus, Inc., a solar concentrator photovoltaic (CPV) system manufacturer start up, has signed a manufacturing and distribution agreement with Moser Baer India Ltd. of New Delhi, India. Moser Baer (MBI) will become a volume manufacturer of SolFocus CPV products and the exclusive distributor of SolFocus' CPV panels in India and neighboring countries. MBI also recently invested $7 million to close out SolFocus' $32 million Series A funding.
25 October 2006
World-leading mega scale solar power station for Victoria
Federal & State governments unite to award $125M of grants to $420M solar power projectA $420 million large-scale power plant – the biggest and most efficient solar photovoltaic power station in the world – is to be built in north-west Victoria.Australian company Solar Systems will demonstrate its unique, world leading design incorporating space technology in a 154MW solar power station connected to the national electricity grid. This plant is expected to be fully operational in 2013 !
OSAKA, 6 November, Asia Pulse
Sharp Develops More Efficient Solar Power System
Japan's Sharp Corp. (TSE:6753) has developed a solar power system with an energy conversion rate of over 37 per cent, double that of conventional polysilicon cells and among the highest in the world, company sources said. Shipments of the highly efficient power generation system to Europe and elsewhere are expected to begin next year.
rule of thumb: 1 MW = 1000 Ge wafers
terrestrial photovoltaics building up track record
business unit
thin film products
Thin Film Products products & applications
•
Umicore TFP develops, manufactures, sells, and recycles coating materials for producing thin films through physical vapor deposition
•
Typical applications are:
•
Antireflection coatings on glasses
•
Hard coatings to improve wear resistance of tools and automotive
components
•
Layers for data-, audio-
and video storage on CD, DVD,
HD-DVD, Blu-Ray discs or on hard disks
•
Conductive and barrier layers in semiconductor chips
•
Transparent conductive layers in Displays and Solar Cells
•
Reflective layers on architectural glass and window panes
Our locations worldwide
Balzers, Liechtenstein
Hsinchu Hsien, Taiwan
Nashua, NH, USA
Providence, RI, USA
Pforzheim (Allgemeine Gold- und Silberscheideanstalt), Germany
Manaus, Brazil
Beijing, China
