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2013 half year results
2013 half year results
2
Highlights
Revenue evolution pointing to a stabilisation in many end-markets
•
Revenues stable versus H1 2012
•
Revenues up 4% versus H2 2012
Profitability affected by product and regional mix and lower metal prices
•
Recurring EBITDA down 10%
•
Recurring EBIT down 15%
Commitment to growth programmes unchanged
Positive cashflows leading to further net debt reduction
Interim dividend of €
0.50 / share
3
Outlook
Guidance maintained
2013 Recurring EBIT expected in €
300 –
330 million range
4
Revenue evolution pointing to stabilisation in many end-markets
Revenues stable versus H1 2012
•
Volume growth in Catalysis and Energy Materials compensating for negative impact of lower metal prices on Recycling
Revenues up 4% versus H2 2012
•
Volume growth in Catalysis, Energy Materials and Performance Materials partly offset by negative impact of lower metal prices on Recycling
Revenues
1,11
5
860
987
1,14
7 1,24
1
1,23
3
985
863
1,01
3
1,17
7
1,18
7
0
250
500
750
1,000
1,250
H1
2008
H2
2008
H1
2009
H2
2009
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013
(in million €)
H1 H2
Restated for discontinued operations in 2008
5
Margins affected by mix effects and lower metal prices
Recurring EBITDA down 10%
•
Less favourable product and regional mix
•
Lower metal prices affecting recycling margins
Recurring EBIT down 15%
•
Higher depreciation charges, linked to growth programmes
Performance starting to benefit from cost reduction measures, mostly in Energy Materials
ROCE at 14.5%
Recurring EBIT
215
50
186
215
163
192
140
97
156
202
181
0
50
100
150
200
250
H1
2008
H2
2008
H1
2009
H2
2009
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013
(in million €)
H1 H2
Restated for discontinued operations in 2008
6
Commitment to growth projects unchanged
R&D expenditure stable
•
Focus on both product and process development
•
Corresponds to 6.8% of revenues
Growth capex on track
•
Large capacity expansions in Rechargeable Battery Materials
•
On-going expansion in Catalysis and Recycling
H1 H2
Restated in 2004, 2006 and 2008 for discontinued operations in following year
R&D restated for scope adjustment in 2010
R&D expenditure
69 68 68 76
919096
67 71
87 920
20
40
60
80
100
120
140
160
H1
2008
H2
2008
H1
2009
H2
2009
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013(in €
million)
Capex
91 103
76
98
120
95
125
88
96
115
159
0
20
40
60
80
100
120
140
160
7
Safety performance improving
Safety performance improved
•
Accident frequency rate at 2.70
•
Accident severity rate at 0.08
Safety initiatives in place, aiming at further progresses and addressing behavioural aspects
Safety
7.10 7.20
5.32
3.54
2.86
2.70
3.61
3.12
5.30
6.30
0.19
0.22
0.20
0.13
0.17
0.08
0.13
0.11
0.11
0.08
0
1
2
3
4
5
6
7
8
2004
2005
2006
2007
2008
2009
2010
2011
2012
H1
2013
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
Accident frequency rate Accident severity rate
8
Workforce evolution
Workforce decreased
•
113 in consolidated businesses, mainly in Energy Materials
•
45 in associates, mainly in Element Six Abrasives
Umicore is adapting its organisation in response to changes in the market
•
Streamlining production footprint
•
Consolidation of activities on certain sites
•
Stepping out of certain product lines
People
10,0
79
9,31
5
9,55
8
10,1
64
10,3
96
10,2
83
5,33
4
4,40
5
4,82
8
4,40
8
4,04
2
3,99
7
15,4
13
13,7
20
14,3
86
14,5
72
14,4
38
14,2
80
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2008
2009
2010
2011
2012
H1
2013
Fully consolidated Associates
Restated for discontinued operations in 2004, 2006 and 2008
Business review 2013Business review 2013
10
Catalysis 2013 H1 figures
Revenues up 3% due to volume growth and effect of Umicore Shokubai consolidation more than offsetting lower pass-through costs
Recurring EBIT down 9% due to product and regional mix in Automotive Catalysts
•
Further decline of overall car production and diesel market share in Europe. Umicore slightly outperformed market.
•
Underperformance in growing North American market as Japanese OEM gained market share
•
Outperformance in all principal Asian markets (China, South Korea, Japan)
Product mix shifts in Precious Metals Chemistry
H1 H2
Revenues
399
275 33
9 391 45
3
466
314
311 35
9 424
413
0
100
200
300
400
500
H1
2008
H2
2008
H1
2009
H2
2009
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013(in €
million)
Recurring EBIT
57
-14
39
46 49
44
7
31
39
44 42
-20
0
20
40
60
11
Ready for Euro 6 in light duty
•
Capacity and capability expansion in Bad Säckingen, Germany
RAMPING UP
Strengthening production capabilities in Korea
•
New production line in Onsan, Korea
END 2013
Building position in growing Indian market
•
Production facility under construction in Pune, India
MID 2014
Enhancing technology service offering to customers worldwide
•
New technology development centre near Nagoya, Japan END 2013
•
New technology centre in Americana, Brazil
END 2013
Catalysis Continued investments in light duty automotive, …
12
Catalysis …
heavy duty diesel and chemical catalysis
HDD market
•
Dedicated SCR line for HDD under construction in Suzhou, China
H1 2014
•
Dedicated HDD line in Florange, France
IN QUALIFICATION
•
Second HDD line in Florange under construction
H1 2014
Precious Metals Chemistry expansion in North America
•
New plant in Tulsa, Oklahoma
H1 2014
13
Energy Materials 2013 H1 figures
Revenues up 9% due to higher sales of cathode materials
EBIT down vs
H1 2012, but recovering vs
H2 mainly as a result of cost reduction measures
Higher sales volumes in Rechargeable Battery Materials
driven by demand for high-end portable electronics; automotive demand growing, albeit from a small base
Revenue growth in
Cobalt & Specialty Materials
due to higher refining and recycling volumes, whereas margins affected by product mix
Further weakening of most end-markets of
Electro-Optic Materials
Revenue increase for Thin Film Products
driven by uplift in display industry H1 H2
Revenues
205
154 17
3
180
184 20
0
190
151 17
4
178
183
0
50
100
150
200
250
H1
2008
H2
2008
H1
2009
H2
2009
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013(in €
million)
Recurring EBIT
36
7
24
21
14
12
21
17
20 20
40
10
20
30
40
14
Energy Materials Expanding production capabilities in growth areas
Investments in Rechargeable Battery Materials to keep pace with demand
•
NMC cathode material capacity expansion in Cheonan , South Korea
COMPLETED
•
Greenfield for NMC precursors under construction in Cheonan
H2 2013
•
Expansion of NMC cathode production in Jiangmen, China
H2 2013
Expansion of Cobalt & Specialty Materials in Olen, Belgium
•
Expansion of Ni refining and recycling plant H1 2014
•
Upgrade of fine Co powders facility
H2 2014
15
Performance Materials 2013 H1 figures
Revenues and recurring EBIT down vs
H1 2012
but up sequentially
Sales volumes in
Building Products
down due to recession in the construction sector and harsh winter conditions at the start of the year
Revenues slightly up in
Zinc Chemicals
with growing product demand; lower availability of Zn residues impacted recycling and refining activity
Stable revenues in
Technical Materials
and Platinum Engineered Materials
Continued growth in Electroplating, further benefiting from the successful introduction of new products
Lower contribution from Element Six Abrasives, affected by weaker end markets
H1 H2
Revenues
257
208
219
271
267
263
226
196 22
7 253
256
0
50
100
150
200
250
300
H1
2008
H2
2008
H1
2009
H2
2009
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013(in €
million)
Recurring EBIT
52
16
47
39
31 29
36
21
29 28
24
0
10
20
30
40
50
60
16
Investments for Zn powder and oxide production in Asia
•
Capacity expansion for Zn oxides in Goa, India
H2 2013
•
New plant for Zn powders in Changsha, China
2015
Building Products’
focus on more advanced products
•
Construction of surface-treatment plant in Viviez, France, on schedule H1 2014
Consolidating research activities in Element Six Abrasives
•
Global synthetic diamond innovation centre near Oxford, UK, opened
COMPLETED
Performance Materials Selective investments on-going
1717
Recycling 2013 H1 figures
Revenues down 10% and recurring EBIT down 16% due to impact of lower metal prices
Precious Metals Refining
performance reflecting:
•
Impact of lower received metal prices, esp. specialty metals
•
Higher processed volumes following technical improvements
•
Higher intake of residues from non-ferrous metal industries more than offsetting decrease in end-of-life materials
Lower Au prices caused lower availability of recycling residues in Jewellery & Industrial Metals
Lower contribution from Precious Metals Management
due to lower overall physical deliveries of precious metals
New contract wins in Battery Recycling
H1 H2
Revenues
253
222 25
4 310 34
2
307
255
204 25
2
327
339
0
100
200
300
400
H1
2008
H2
2008
H1
2009
H2
2009
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013(in €
million)
Recurring EBIT
95
66
102
133
122
103
106
52
93
134
137
0
25
50
75
100
125
150
18
Debottlenecking investments in Hoboken
•
New biological water treatment plant reaching completion
H2 2013
•
Enhanced gas cleaning equipment on lead operations being installed
H2 2013
•
2nd
phase of upgrade and expansion of sampling facility started
H2 2014
Adding recycling capabilities in Jewellery & Industrial Metals
•
Expansion of Ag recycling in Bangkok, Thailand
COMPLETED
•
Expansion of Ag recycling in Pforzheim, Germany
2015
18
Recycling Growth investments continue
2013 half year financials
2013 half year financials
20
Non-recurring elements
Non-recurring EBIT of €
-23 million
•
Restructuring charges mainly in Element Six Abrasives
•
Additional environmental provisions
Total impact on net result of €
-26 million
About half of the amount is non-cash
Non-recurring items H1(in million €) 2013
Restructuring charges & provisions (11.1) Environmental charges & provisions (7.8) Impairments on metal inventory (1.0) Other (2.8)
Non-recurring EBIT (22.8)
Non-recurring tax result 2.3 Non-recurring minority result 0.1
Net non-recurring result (20.6)
Net IAS 39 effect (4.9)
Total impact on net result (25.5)
21
Strong cashflows
Net operating cashflow
179
224
353
176
237
17
275
83
160
21
356
-100
0
100
200
300
400
H1
2008
H2
2008
H1
2009
H2
2009
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013
(in million €)
H1 H2
Net cashflow before financing
-40
171
72 77
105
236
87
-74
236
73
6
-100
0
100
200
300
400
H1
2008
H2
2008
H1
2009
H2
2009
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013
(in million €)
H1 H2
22
Positive cashflows further reduced net debt
Net financial debt evolution
Net debt31/122012
Net debt30/062013
Operatingcashflow
CapexTaxes
Dividends
Sharebuybacks
Other
+240 -120
-15-61
-26+15
-190-222
-250
-200
-150
-100
-50
0
50(in million €)
Operating cashflow excludes changes in working capital (€
1 million)
23
Strong capital structure maintained
Net financial debt
333
177
267
360
222
190
0
100
200
300
400
2008
2009
2010
2011
2012
H1
2013
(in million €)
Restated for discontinued operations in 2004
Debt ratios
10%11
%
13%
19%
11%
20%
0.8 1.
0
0.5
0.5
0.40.6
0%
5%
10%
15%
20%
25%
2008
2009
2010
2011
2012
H1
2013
0.0
1.0
2.0
3.0
4.0
5.0
Gearing ratio (debt / debt+equity)
Average net debt / recurring EBITDA
Restated for discontinued operations in 2004End of year
Restated for discontinued operations in 2004
24
EPS, dividend and share buyback
Recurring EPS
1.17 1.24 1.
39
1.02
0.18
1.31
0.74
0.55
1.09
1.30
1.16
0.00
0.25
0.50
0.75
1.00
1.25
1.50
H1
2008
H2
2008
H1
2009
H2
2009
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013(in €
million)
Dividend
0.65
0.65
0.80
1.00
1.00
0.33 0.
40 0.50
0.50
0.00
0.25
0.50
0.75
1.00
1.25
2008
2009
2010
2011
2012
2013
Dividendinterim dividend
EPS reflecting lower EBIT
Interim dividend of €
0.50 / share
Share buybacks
•
758,311 shares bought back in 2013
•
Representing 0.6% of shares
•
Currently holding 7.2% in treasury
Wrap-upWrap-up
26
Wrap-up
Revenue evolution indicating stabilisation in many end-markets
Profitability affected by shift in product and regional mix and lower metal prices
Commitment to longer term growth programmes maintained
Cashflows remain well positive
2013 recurring EBIT guidance unchanged
27
Financial calendar
02/09/2013
Ex interim dividend trading date
04/09/2013
Interim dividend record date
05/09/2013
Interim dividend payment date
23/10/2013
2013 Q3 trading update
06/02/2014
2013 results publication
29/04/2014
2014 Q1 trading update
29/04/2014
Annual General Meeting
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.
28
Investor Relations
Geoffroy Raskin [email protected] +32-2-227 71 47
Evelien Goovaerts [email protected] +32-2-227 78 38
Investor Relations
Geoffroy Raskin [email protected] +32-2-227 71 47
Evelien Goovaerts [email protected] +32-2-227 78 38
