Ordinary, special and extraordinary shareholders' meetings
30 April 2020
Agenda
Governance Highlights 2019 COVID-19
2020 outlook Remuneration Voting
Umicore shareholders' meetings 30 April 2020 | 2 |
Governance
Umicore shareholders' meetings 30 April 2020 | 3 |
Board of directors
Key board meeting topics in 2019
- Financial performance and budget for the Group
- Funding mandate (US private placement)
- Innovation strategy
- M&A projects
- Investment projects and strategic opportunities
- Business reviews and market updates
- Business risk assessment
- IT security
- Board and ExCom succession
7 full board meetings in 2019
100% attendance for full board meetings
100% attendance for all committees
Umicore shareholders' meetings 30 April 2020 | 4 | |
Application of new corporate governance rules
New Belgian Code of companies and associations
Two-tier model
- Supervisory board, composed exclusively of non-executive directors and headed by a chairman
- Management board headed by the CEO
- The two-tier model is the most appropriate for Umicore going forward
- Submitted for shareholders' approval (EGM)
Umicore board decided not to propose a resolution seeking to give dual voting rights to registered shareholders holding their shares for a period of more than two years
Belgian Code
of Corporate
Governance 2020
- Results in only few minor changes in Umicore's governance practice
- The board has approved a new version of the corporate governance charter
- Umicore will report on compliance against its provisions in the annual report
- Remuneration
- Directors already partly paid in shares
- In addition, the board, upon advice of the nomination & remuneration committee, will set a minimum shareholding requirement for members of the executive management
Umicore shareholders' meetings 30 April 2020 | 5 |
Proposed board member
Mario Armero
Umicore shareholders' meetings 30 April 2020 | 6 |
Highlights 2019
Umicore shareholders' meetings 30 April 2020 | 7 |
Significant strides made in the execution of Horizon 2020 strategy
Clear leadership | Doubled the size | Turned sustainability | Rebalanced |
in clean mobility | of the business in | into a greater | portfolio & earnings |
materials and recycling | terms of earnings | competitive edge | contributions |
REVENUES | +3% | ROCE | Capex | |||
With a strong | €3.4bn | 12.6% | €553m | |||
performance in a | ||||||
persistently challenging | REBIT | Close to 2018 | EPS | -5% | R&D | |
market context | record level | |||||
€509m | €1.30 | €211m | ||||
Umicore shareholders' meetings 30 April 2020 | 8 |
Umicore shareholders' meetings 30 April 2020 | 10 |
Strong performance in persistently challenging market context
Strong performance in persistently challenging environment
CATALYSIS
Market share gains in gasoline catalyst applications
Leading light-duty catalyst provider in China, largest car market worldwide
Strong growth from fuel cell catalyst applications
ENERGY & SURFACE
TECHNOLOGIES
Growth in cathode materials for EVs in line with the market
Higher cathode materials sales in H2, sequentially and YoY
Cobalt price halved vs 2018
Higher D&A and upfront greenfield investment costs
RECYCLING
Favorable supply environment
Optimized input mix offset largely lower volumes
Higher metal prices
Umicore shareholders' meetings 30 April 2020 | 12 |
Strong performance in persistently challenging market context
REVENUES | REBIT | REBITDA | |||||
CATALYSIS | €1.5bn +7% | €185m | +10% | €264m +11% | |||
REVENUES | REBIT | REBITDA | |||||
ENERGY & SURFACE | €1.2bn -5% | €183m | -29% | €271m | -16% | ||
TECHNOLOGIES | |||||||
REVENUES | REBIT | REBITDA | |||||
RECYCLING | €681m +9% | €188m | +40% | €250m | +29% | ||
34%33%
Group
REBIT
33%
Catalysis
Energy & Surface Technologies
Recycling
Corporate not included
Umicore shareholders' meetings 30 April 2020 | 13 |
Striving for healthy & safe employees
Delivering eco-efficient & ethical operations
VALUE CHAIN & SOCIETY
Global Framework Agreement on Sustainable Development renewed
Gold & silver certified conflict-freeRMI-conformant Cobalt refineries
ECO-EFFICIENCY
Input from secondary | 60% |
& end-of-life materials |
Measuring & increasing the share of purchased renewable energy
GREAT PLACE TO WORK
Growth in Belgium, China, Korea and Finland in 2019
Connecting employees through the digital workplace
Safety remains a priority
-23% energy consumption -59% metal emissions to air -57% metal emissions to water
vs. 2015 baseline
11,152 group employees
94% retention rate
83% sites without LTAs
Umicore shareholders' meetings 30 April 2020 | 14 |
COVID-19
Umicore shareholders' meetings 30 April 2020 | 15 |
Umicore's response to COVID-19
Keeping our people healthy and ensuring safe working conditions
Strict hygiene and precautionary measures
Dedicated global task force
Limited number of infected employees
Preserving cash
Reduce costs: production capacity adjusted and 10% of workforce furloughed Optimize working capital
Delay investments (2020 capex expected between € 400 - € 450 million) Proposed reduced dividend of € 0.375 per share for the full year 2019
Strong funding structure and increased liquidity
Strong balance sheet with ample liquidity (€ 1.2 bn immediate cash available) Well-balanced debt profile with no material maturities prior to 2023
Umicore shareholders' meetings 30 April 2020 | 16 |
Strong Q1 performance
Well ahead of the previous year
Recycling: strong Q1 contribution from all business units
- Supportive supply conditions and metal prices in Precious Metals Refining
- Favorable trading conditions for precious and certain PGM metals in Precious Metals Management
- Strong demand for gold investment products and gold recycling services in Jewelry & Industrial Metals
Catalysis and Energy & Surface Technologies: good start of the year with first impact of COVID-19
- Outperforming the car market in Q1
- Impact of COVID-19 on Automotive Catalysts and Rechargeable Battery Materials:
- In February in China
- As from mid-March in other key regions such as Europe and the US
Umicore shareholders' meetings 30 April 2020 | 17 |
Impact of COVID-19 on automotive industry
Global
Car production -25% YoY in Q1
China
Car production slowly picking up, yet still significantly below 2019 levels in March (-45%)
More pronounced decline in NEV production (-57% in March) Demand remaining fragile and inventory levels high
Europe and North-America
Car OEMs assembly lines shut down since mid-March
Significant decline in car production in Europe (-45%) and the US (-30%) in March
Assembly lines in Europe gradually restarting production; expected gradual restart in North-America around mid-May
Purchasing power end- consumers impacted by COVID-19
and demand anticipated to
remain fragile in 2020
Umicore currently assumes that global car production for the full year will be down by approximately 25% from the levels of 2019
Umicore shareholders' meetings 30 April 2020 | 18 |
Update on COVID-19 impact on operations
CATALYSIS
Production at Automotive
Catalysts:
- Impacted in China during Lunar NY holidays and following weeks; slight pick-up since then
- Temporary production stops in regions outside China, Korea and Japan
- Full impact of COVID-19 on performance expected as of Q2
Demand in Precious Metals
Chemistry significantly impacted by COVID-19
ENERGY & SURFACE
TECHNOLOGIES
Production at Rechargeable
Battery Materials:
- Impacted in China during Lunar NY holidays and following weeks; slight pick-up since then
- Full impact of COVID-19 on performance expected as of Q2
Demand in other business units, in particular Cobalt & Specialty Materials also significantly impacted by COVID-19
RECYCLING
All sites remain in operation and comply with strict sanitary standards
Favorable trading conditions
for Precious Metals
Management
Strong demand for gold investment products and recycling at Jewelry &
Industrial Metals
Umicore shareholders' meetings 30 April 2020 | 19 |
2020 outlook
Umicore shareholders' meetings 30 April 2020 | 20 |
2020 outlook
REBIT in Catalysis and Energy & | Based on strong Q1 and expectation of | |
continued favorable supply conditions, | ||
Surface Technologies expected well | ||
Recycling REBIT expected well above | ||
below levels of 2019 | ||
levels of 2019 | ||
Assuming that global car production will be down by approximately 25% from | ||
Assuming metal prices remain at their current level. | ||
the levels of 2019. | ||
Duration of COVID-19 impact highly uncertain and visibility on market demand extremely low, making it impossible today to give any reliable quantified outlook for 2020
2020 recurring EBIT expected to be well below the level of 2019
Umicore shareholders' meetings 30 April 2020 | 21 |
Remuneration
Umicore shareholders' meetings 30 April 2020 | 22 |
Executive committee
Remuneration Policy
- Fixed remuneration reflecting the level of responsibility
- Variable remuneration with 50% undeferred, based on individual performance
- Variable remuneration with 50% deferred over 3 years, based on multi-year Company performance
- Share-basedcompensation: share grant + stock options (both with 3-year lock up)
- Pension plan and other benefits
- Minimum shareholding requirement
Remark: If the dual board structure is adopted by the EGM, Board should be read as Supervisory Board and ExCom as Management Board in the Remuneration Policy as published in the Annual Report.
Changes as of 2020
- Increased fixed remuneration for the CEO (+ € 20,000), and for the executive committee members (+ € 20,000)
- Grant of 10,000 shares for the CEO (vs 10,400 shares for reference year 2018), and 7,000 shares for the executive committee members (vs 7,400 shares for reference year 2018)
Umicore shareholders' meetings 30 April 2020 | 23 |
Executive remuneration 2019
CEO | Executive committee | |||
(in Euros) | 2018 | 2019 | 2018 | 2019 |
Fixed | 700,000 | 700,000 | 2,306,250 | 2,525,417 |
Undeferred variable 50% | 220,000 | 87,500 | 662,500 | 570,000 |
Deferred variable 50% | 144,450 | 256,500 | 481,500 | 855,000 |
Pension | 168,397 | 213,079 | 661,608 | 663,437 |
Other | 51,631 | 51,921 | 123,293 | 209,223 |
Value of shares granted | 354,432 | 420,500 | 1,381,284 | 1,764,218 |
Options (value at grant) | 1,033,500 | 712,600 | 1,266,038 | 908,565 |
TOTAL | 2,672,410 | 2,442,100 | 6,882,473 | 7,495,860 |
1,088,250 shares | |
2019 | 1,542,000 outstanding options |
Umicore shareholders' meetings 30 April 2020 | 24 |
Board
Remuneration Policy
- Fixed fee reflecting the level of responsibility
- Attendance fee
- Share-basedcompensation
Remark: If the dual board structure is adopted by the EGM, Board should be read as Supervisory Board and ExCom as Management Board in the Remuneration Policy as published in the Annual Report.
Changes as of 2020
- The additional attendance fee for members residing out of Belgium will also apply for the Committee meetings, attended in person and not combined with a Board meeting
- The shares granted have to be held until at least one year after the member leaves the Board and at least 3 years after the moment of grant
Umicore shareholders' meetings 30 April 2020 | 25 |
Questions provided ahead of the shareholders' meetings
Umicore shareholders' meetings 30 April 2020 | 26 |
Questions provided ahead of the shareholders' meetings
- Could you provide more context on the decision to reduce the dividend for 2019?
- Some companies give their shareholders the option to chose between a dividend pay-out in cash or shares. Would you consider this next year?
- Could you please provide more information on the impact of the COVID-19 pandemic on Umicore's activities in Q1 and FY 2020?
Umicore shareholders' meetings 30 April 2020 | 27 |
Questions provided ahead of the shareholders' meetings
• Solidarity with the pandemic's victims
a. Allocation of the budget of the shareholders' meetings
The company Elia will donate the budget which would normally have been used for the organization of the shareholders' meetings to 3 solidarity funds of the King Baudouin foundation. Would you consider this?
b. Creation of a solidarity fund for employees impacted by a lower income due to the pandemic
Ilham Kadri, CEO of Solvay, created a solidarity fund financed by a 15% decrease of the remuneration of Solvay's top management and Board members. Would you consider this?
Umicore shareholders' meetings 30 April 2020 | 28 |
Voting
Umicore shareholders' meetings 30 April 2020 | 29 |
Agenda
Ordinary shareholders' meeting
- Annual report of the board of directors and report of the statutory auditor on the statutory annual accounts 2019
- Approval of the remuneration report
- Approval of the remuneration policy
- Approval of the statutory annual accounts 2019 including the proposed allocation of the result
Umicore shareholders' meetings 30 April 2020 | 30 |
Agenda
- Communication of the consolidated annual accounts as well as the board report and the auditor's report on those consolidated annual accounts
- Discharge to the directors
- Discharge to the statutory auditor
- Board composition and remuneration
- Re-electingMrs Ines Kolmsee as independent director for a period of 3 years
- Re-electingMrs Liat Ben-Zur as independent director for a period of 3 years
- Electing Mr Mario Armero as director for a period of 3 years
- Approving the board members' remuneration proposed for the financial year 2020
Umicore shareholders' meetings 30 April 2020 | 31 |
Agenda
9. Re-election of the statutory auditor and remuneration
- Re-electingPwC Bedrijfsrevisoren/Réviseurs d'Entreprises, represented by Mr Kurt Cappoen, for a period of 3 years
- Approving the remuneration of the statutory auditor for the financial years 2020 through 2022
Umicore shareholders' meetings 30 April 2020 | 32 |
Agenda
Special shareholders' meeting
1. Approval of change of control clause
Umicore shareholders' meetings 30 April 2020 | 33 |
Agenda
Extraordinary shareholders' meeting
- Amendment of the articles of association in order to bring them in line with the new Code of Companies and Associations (including the adoption of a two-tier board structure) and to modernize them
- Composition of the supervisory board
- Powers
Umicore shareholders' meetings 30 April 2020 | 34 |
Ordinary general meeting
Assemblée générale ordinaire
Gewone algemene vergadering
First resolution
Approval of the remuneration report
Première résolution
Approbation du rapport de rémunération
Eerste besluit
Goedkeuring van het remuneratieverslag
Umicore shareholders' meetings 30 April 2020 | 35 |
Ordinary general meeting
Assemblée générale ordinaire
Gewone algemene vergadering
Second resolution
Approval of the remuneration policy
Deuxième résolution
Approbation de la politique de rémunération
Tweede besluit
Goedkeuring van het remuneratiebeleid
Umicore shareholders' meetings 30 April 2020 | 36 |
Ordinary general meeting
Assemblée générale ordinaire
Gewone algemene vergadering
Third resolution
Approval of the statutory annual accounts of the company for the financial year ended on 31 December 2019 including the proposed allocation of the result
Troisième résolution
Approbation des comptes statutaires de la société relatifs à l'exercice social clôturé le 31 décembre 2019 y compris la proposition d'affectation du résultat
Derde besluit
Goedkeuring van de enkelvoudige jaarrekening van de vennootschap voor het boekjaar afgesloten op 31 december 2019 met inbegrip van de voorgestelde resultaatsbestemming
Umicore shareholders' meetings 30 April 2020 | 37 |
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering
Fourth resolution
Discharge to the directors
Quatrième résolution
Décharge aux administrateurs
Vierde besluit
Kwijting aan de bestuurders
Umicore shareholders' meetings 30 April 2020 | 38 |
Ordinary general meeting Assemblée générale ordinaire Gewone algemene vergadering
Fifth resolution
Discharge to the statutory auditor
Cinquième résolution
Décharge au commissaire
Vijfde besluit
Kwijting aan de commissaris
Umicore shareholders' meetings 30 April 2020 | 39 |
Ordinary general meeting
Assemblée générale ordinaire
Gewone algemene vergadering
Sixth resolution
Re-electing Mrs Ines Kolmsee as independent director for a period of three years
Sixième résolution
Réélection en qualité d'administrateur indépendant de Madame Ines Kolmsee pour un terme de trois ans
Zesde besluit
Herbenoeming van mevrouw Ines Kolmsee tot onafhankelijk bestuurder voor een periode van drie jaar
Umicore shareholders' meetings 30 April 2020 | 40 |
Ordinary general meeting
Assemblée générale ordinaire
Gewone algemene vergadering
Seventh resolution
Re-electing Mrs Liat Ben-Zur as independent director for a period of three years
Septième résolution
Réélection en qualité d'administrateur indépendant de Madame Liat Ben-Zur pour un terme de trois ans
Zevende besluit
Herbenoeming van mevrouw Liat Ben-Zur tot onafhankelijk bestuurder voor een periode van drie jaar
Umicore shareholders' meetings 30 April 2020 | 41 |
Ordinary general meeting
Assemblée générale ordinaire
Gewone algemene vergadering
Eighth resolution
Appointing Mr Mario Armero as director for a period of three years
Huitième résolution
Election en qualité d'administrateur de Monsieur Mario Armero pour un terme de trois ans
Achtste besluit
Benoeming van de heer Mario Armero tot bestuurder voor een periode van drie jaar
Umicore shareholders' meetings 30 April 2020 | 42 |
Ordinary general meeting
Assemblée générale ordinaire
Gewone algemene vergadering
Ninth resolution
Approving the board members' remuneration
Neuvième résolution
Approbation de la rémunération des membres du conseil d'administration
Negende besluit
Goedkeuring van de vergoeding van de leden van de raad van bestuur
Umicore shareholders' meetings 30 April 2020 | 43 |
Ordinary general meeting
Assemblée générale ordinaire
Gewone algemene vergadering
Tenth resolution
Re-electing PricewaterhouseCoopers Bedrijfsrevisoren/Réviseurs d'Entreprises, represented by Mr Kurt Cappoen, as statutory auditor for a period of three years - approving the statutory auditor's remuneration
Dixième résolution
Réélection en qualité de commissaire de PricewaterhouseCoopers Réviseurs d'Entreprises, représentée par Mr Kurt Cappoen, pour un terme de trois ans - approbation de la rémunération du commissaire
Tiende besluit
Herbenoeming van PricewaterhouseCoopers Bedrijfsrevisoren, vertegenwoordigd door de heer Kurt Cappoen, tot commissaris voor een periode van drie jaar - goedkeuring van de vergoeding van de commissaris
Umicore shareholders' meetings 30 April 2020 | 44 |
Special general meeting
Assemblée générale spéciale
Bijzondere algemene vergadering
Sole resolution
Approval of a change of control provision, as required under Article 556 of the old Belgian Companies Code
Unique résolution
Approbation d'une clause de changement de contrôle, comme requis sous l'article 556 de l'ancien Code des sociétés belge
Enig besluit
Goedkeuring van een clausule van controlewijziging, zoals vereist onder artikel 556 van het oude Wetboek van vennootschappen
Umicore shareholders' meetings 30 April 2020 | 45 |
Extraordinary general meeting
Assemblée générale extraordinaire
Buitengewone algemene vergadering
First resolution
Amendment of the articles of association in order to bring them in line with the new Code of companies and associations and to modernize them
Première résolution
Modification des statuts en vue de les mettre en concordance au nouveau Code des sociétés et des associations, et de les moderniser
Eerste besluit
Wijziging van de statuten om ze in overeenstemming te brengen met het nieuw Wetboek van vennootschappen en verenigingen
Umicore shareholders' meetings 30 April 2020 | 46 |
Extraordinary general meeting Assemblée générale extraordinaire Buitengewone algemene vergadering
Second resolution
Composition of the supervisory board
Deuxième résolution
Composition du conseil de surveillance
Tweede besluit
Samenstelling van de raad van toezicht
Umicore shareholders' meetings 30 April 2020 | 47 |
Extraordinary general meeting Assemblée générale extraordinaire Buitengewone algemene vergadering
Third resolution
Powers
Troisième résolution
Pouvoirs
Derde besluit
Volmachten
Umicore shareholders' meetings 30 April 2020 | 48 |
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Umicore NV published this content on 30 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2020 09:38:04 UTC