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Umicore launches “Umicore 2030 – RISE”, its new strategic plan designed to accelerate value-creating growth


Umicore launches “Umicore 2030 – RISE”, its new strategic plan designed to accelerate value-creating growth

Umicore organizes its Capital Markets Day for investors and analysts today at 09:00 BST/10:00 CEST. The event will be held in London and will also be webcast live at the following address: Umicore Capital Markets Day

Mathias Miedreich, CEO, together with his colleagues from the management committee, will unveil Umicore’s new strategy “Umicore 2030 – RISE”.

The strategy is based on the following key elements:

  • Continuation of Umicore’s strategic journey by further strengthening its leadership in clean mobility materials and recycling, achieved as part of the Horizon 2020 strategy.
  • Strategy driven by powerful megatrends, in particular the rapid acceleration towards cleaner mobility, which is expected to drive Umicore’s addressable mobility market to triple by 2030.
  • At the heart of the strategy: a unique value proposition to be a reliable transformation partner for customers, supporting them in their sustainability journey.
  • Strategy execution and scaling are based on the 4 pillars of RISE (REliable Transformation Partner, Iinnovation & technology leader, Ssustainability champion, Eexcellence in execution).
  • Ensure profitable growth with constant value creation by 2030 and beyond.

Mathias Miedreich, CEO of Umicore: “Our ‘Umicore 2030 – RISE’ strategy builds on our proven ability to capture megatrends, our strong market positions, our technological leadership and our organizational excellence. It will enable us to accelerate sustainable and profitable growth and be a net beneficiary of the changing world, in particular the rapidly accelerating transformation of mobility.

In line with our vision of sustainable growth, we continue to build on our clear purpose of producing “materials for a better life” through activities that will help shape a healthier planet and society, while delivering value sustainability to our stakeholders.”

Umicore will be a net beneficiary of the changing world

The transformation of mobility is accelerating and the shift to cleaner mobility is expected to triple by 2030. With its complementary portfolio and presence in all transmission technologies, Umicore is ideally positioned to seize this opportunity of growth.

In this context, the activity Rechargeable Battery Materials Umicore is intended to generate profitable growth by focusing on strengthening and growing its footprint in key regions. In Europe, Umicore will build on its first-mover advantage through long-term customer partnerships and further extensions of the regional footprint along the CAM value chain. Based on ongoing customer qualifications, Umicore is preparing to establish a regional presence in North America across the entire CAM value chain by the end of 2025. At the same time, Umicore will strengthen its position in Asia by to a more diversified exposure to customers and platforms. Thanks to the planned investments over the period, Rechargeable Battery Materials aims to achieve adjusted EBITDA margins of around 20% in 2030. Umicore expects to earn more than its cost of capital shortly after 2026 in this business unit, with increasing returns thereafter.

On the basis of its solid technological portfolio, the activity Automotive Catalysts Umicore is well positioned to capture the upcoming market peak and maximize business value by continuously focusing on process efficiency and operational agility. The business unit has the potential to generate free cash flow of around €3 billion between 2022 and 2030, with adjusted EBITDA margins of around 20% maintained over the period. In the field of catalysts for fuel cells (Fuel Cell Catalysts), Umicore will leverage its advanced technology and position in the PEM fuel cell catalyst market to capture the growth of hydrogen-based mobility. Responding to strong growth in customer demands, Umicore will expand its mass production capabilities for PEM catalysts with a new plant in China, which will be commissioned in 2024. This plant will be the largest fuel cell catalyst plant in the world. world.

As a pioneer in battery recycling and thanks to its differentiating pyro-hydro technology, Battery Recycling Solutions occupies a unique position in this market. Based on growing customer demand, Umicore’s battery recycling capabilities will be significantly expanded in Europe, while expansion into North America is under consideration. The strategic plan foresees an investment of approximately €500 million in a new large-scale battery recycling plant, with a nominal capacity of 150 kT, deploying the latest evolution of Umicore’s pyro-hydro stream. Upon commissioning of the plant in 2026, Umicore is expected to be the first company in Europe to cover the entire CAM value chain on a large scale, thus strongly contributing to the European Union’s objective of establish a sustainable and circular EV battery ecosystem in Europe.

Precious Metals Refiningthrough its leadership in sustainable and complex recycling, is seen as continuing to create sustainable value with EBITDA margins above 35% and strong cash flow generation even at normalized PGM prices.

The group’s financial ambition: creation of sustainable value by balancing growth, returns and cash flow throughout the plan.

  • Potential to more than double revenue by 20301
  • Adjusted EBITDA margins > 20% throughout the period.
  • Returns above the cost of capital throughout the plan, with a target of 15% ROCE by 2030.
  • Progressive investment of approximately 5 billion euros between 2022 and 2026, Battery Recycling Solutions and Rechargeable Battery Materials representing the majority, subject to value-creating agreements.
  • Generation of attractive free cash flow at Group level in the second half of the decade.

Sustainable development at the heart of the approach

One of the pillars of Umicore’s “Let’s go for Zero” sustainability ambitions is a plan to minimize its impact on the climate. In addition to its recently unveiled ambition to achieve net Scope 1 and 2 greenhouse gas emissions by 2035, Umicore is now setting an ambitious target also for its Scope 3 emissions to drive the decarbonisation of the value: a 42% reduction in CO emissions2e/tonne of its materials purchased by 2030.


Join Umicore’s Capital Markets Day 2022 live.

Date: Wednesday, June 22, 2022
Time: 09:00 BST/10:00 CEST
Click here to register for the webcast.

For the Q&A session, participants will have the possibility to send written questions during the event, directly via the webcast platform. It will not be possible to ask questions over the phone.

The presentations screened during Umicore’s Capital Markets Day will be made available on 22 June 2022 on the dedicated website at https://capitalmarketsday.umicore.com/en/agenda/


Disclaimer

This press release contains forward-looking information that involves risks and uncertainties, including statements regarding Umicore’s plans, objectives, expectations and intentions. Should one or more of these risks, uncertainties or contingencies materialize, or should underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. Readers are cautioned that forward-looking statements involve known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Umicore’s control. Accordingly, neither Umicore nor any other person assumes responsibility for the accuracy of such forward-looking statements.

For more information

Investor Relations

Eva Behaeghe +32 2 227 70 68 [email protected]

Adrien Raicher +32 2 227 70 68 [email protected]

Evelien Goovaerts +32 477 58 68 14 [email protected]

media relations

Marjolein Scheers +32 2 227 71 47 [email protected]

Caroline Jacobs +32 2 227 71 29 [email protected]

About Umicore

Umicore is the materials technology group flyers. He focuses on application areas where his expertise in materials science, chemistry and metallurgy makes a real difference. Its activities are organized into three business groups: Catalysis, Energy & Surface Technologies and Recycling. Each business group is divided into market-oriented business units that offer materials and solutions at the cutting edge of new technological developments and essential to daily life.

Umicore generates the majority of its revenues and devotes most of its R&D efforts to materials for clean mobility and recycling. Umicore’s overriding objective in creating sustainable value is based on the ambition to develop, produce and recycle materials in a way that fulfills its mission: materials for a better life (materials for a better life).

Umicore’s industrial and commercial operations as well as its R&D activities are located around the world in order to best serve its global customer base. The Group generated a turnover (excluding metal) of €4.0 billion (turnover of €24.1 billion) and employed 11,050 people in 2021.


1 Assuming a scenario of gradual PGM price normalization and stable average 2021 battery metal prices.

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