Umicore

Earnings Release • Feb 16, 2024

UMICORE 2023 FULL YEAR RESULTS

Key highlights

Revenues* of € 3.9 billion (-7% vs. 2022)

Adjusted EBITDA of € 972 million (-16% vs. 2022) and adjusted EBITDA margin of 25.0% (27.3% in 2022)

Adjusted EBIT of € 674 million (-22% vs. 2022)

ROCE of 13.5% (19.2% in 2022)

Adjusted net profit (Group share) of € 447 million and adjusted EPS of € 1.86 Cash flow from operations of € 1,217 million (€ 835 million in 2022); free operating cash flow of € 332 million (€ 344 million in 2022)

Capital expenditures of € 857 million (€ 470 million in 2022)

Net debt at € 1,266 million, compared to € 1,104 million at the end of 2022. This corresponds to a net debt/ LTM adj. EBITDA ratio of 1.30

Proposed gross annual dividend for 2023 of € 0.80 of which € 0.55 to be paid in May 2024, with an interim dividend of € 0.25 already paid out in August 2023.

Umicore continued to deliver strong cash flows and margins in a tough year, while significantly stepping up investments for future growth.

• Catalysis¹ delivered record results for the third consecutive year. Adjusted EBITDA amounted to € 436 million, up 4% compared to the previous year. The Business Group's performance was mostly driven by Automotive Catalysts. Sales volumes and revenues for the business unit increased, benefiting from a rebound in the Chinese heavy-duty diesel production as well as year-on-year growth in global light-duty ICE production. In addition, Automotive Catalysts made further strong progress on efficiency improvements. The Business Group generated substantial free cash flow. The adjusted EBITDA margin for the Business Group amounted to 24.2%.
• Revenues for Energy & Surface Technologies¹ were below the level of 2022. The decrease mainly results from lower revenues for Rechargeable Battery Materials. These reflect the combined impact of a lower non-recurring lithium effect and lower volumes for cathode active materials from legacy contracts. Adjusted EBITDA amounted to € 259 million, with a slight increase in earnings for Rechargeable Battery Materials supported by a substantial one-off related to lower costs from mass production test runs and valuation of battery production scraps. Cobalt & Specialty Materials reported, as expected, a substantial decline in earnings. This combined with solid performance of the business units Electro-Optic Materials and Metal Deposition Solutions resulted in an EBITDA margin of 24.6% for the Business Group.

¹ Further details of the individual performance of the Business Groups and Business Units during the year can be found in the Catalysis, Energy & Surface Technologies and Recycling sections of this press release.

^* All references to revenues refer to revenues excluding metals (i.e. all revenue elements less the value of the following purchased metals: Au, Ag, Pt, Pd, Rh, Co, Ni, Pb, Cu, Ge, Li and Mn).

• The Recycling¹ performance in 2023 was resilient. Although it was below the exceptional performance of 2022, it was well above pre-2020 levels, the year in which the rhodium price started to peak. Adjusted EBITDA amounted to € 372 million, down 30%, reflecting a context of substantially declining PGM prices over 2023, as well as the impact of cost inflation mainly in the first half of the year. These headwinds were partially mitigated by the strong performance of the Precious Metals Management business unit, strategic metal hedges, as well as the introduction of an efficiency program which going forward will result in increased cost efficiencies to counteract the decreased PGM price environment. In a challenging market environment, the Recycling segment delivered an overall robust performance, resulting in an EBITDA margin of 36.7%.

Umicore's Group revenues for the full year 2023 amounted to €3.9 billion versus € 4.2 billion in 2022. The adjusted EBIT for the Group stood at € 674 million and the adjusted EBITDA at € 972 million, both below the levels of 2022, including a more than € 200 million PGM price and inflation headwind² . Umicore maintained a strong adjusted EBITDA margin of 25% in 2023, which is well in line with its 2030 RISE target of above 20%.

Capital expenditures amounted to € 857 million, up 82% year-on-year, mainly driven by investments to execute the contracts secured in the order book for Rechargeable Battery Materials. Operational free cash flow remained strong at € 332 million, despite the significantly increased capital expenditures, enabled through a Group-wide working capital improvement focus. Net financial debt slightly increased to € 1.3 billion resulting in a leverage ratio of 1.30x LTM adjusted EBITDA.

A gross annual dividend of € 0.80 per share, of which € 0.25 was already paid out in August 2023, will be proposed at the Annual General Meeting in April.

Mathias Miedreich, CEO of Umicore, commented "Umicore's 2023 results demonstrate our ability to deliver strong cash flows and margins, despite challenging market conditions and a step up in investments as we continue to prepare our growth trajectory. We made strong progress on cost savings in operations and are further accelerating this into 2024. In addition, we reached significant strategic milestones across our activities. In Battery Materials we have secured a sizeable and diversified orderbook, safeguarded by very strong contractual terms. We also have been able to secure substantial government grants for our expansions in Europe and North America amounting to close to € 1 billion. With these grants, and an optimized capacity ramp up phasing, we have been able to decrease our anticipated net capital expenditures needed to execute our orderbook. As we move into 2024, our teams are now focusing on execution excellence, remaining firmly committed to delivering on our targets. I would like to thank our employees, customers, partners and shareholders for their trust and support."

² Of which the cost inflation headwind amounted to € 50 million over 2023.

Financial discipline, accelerating efficiencies and additional strategic metal hedging

Umicore is making strong progress on its 2030 RISE strategic trajectory with significant milestones achieved over the past 18 months. The current macroeconomic environment has changed significantly from when Umicore launched its strategy in June 2022, in particular with faster and more steeply declining precious metal prices.

In that context, Umicore announced in 2023 that the net total capital expenditures³ for the Group between 2022 and 2026 are expected to amount to € 3.8 billion. This reduction of funding needs compared to the earlier assumptions made when launching the 2030 RISE strategy, results from securing higher-than-anticipated government grants and subsidies, and the partial funding of joint venture capital expenditures by non-recourse debt. It also results from a disciplined capacity phasing strictly in line with customer contracts and orders, an improved utilization of existing capacities in APAC and an optimized, asset-light upstream model, leaving room for highly selective additional customer programs.

In addition, Umicore has launched the 'Efficiency for Growth' program over the summer 2023, a company-wide program that accelerates ongoing efficiency improvements across the different business groups to support both cost optimization, top-line growth and working capital improvement in the context of the 2030 RISE execution.

Umicore expects Efficiency for Growth to deliver at least € 70 million EBITDA in 2024 (included in the outlook provided on page 5) and as from 2025 a run-rate exceeding € 100 million EBITDA.

Finally - and in the framework of its strategic metal hedging approach - Umicore has entered, over the course of 2023, into forward contracts covering for a longer period and a significantly larger portion of its structural price exposure compared to the past approach⁴ with the aim to reduce volatility, protect future earnings linked to its exposure to certain precious metal prices and to increase visibility on future cash flows.

Wannes Peferoen, Umicore's CFO commented: "Our unwavering focus on financial discipline, the further acceleration of our efficiency efforts, combined with a hedging policy that is more adapted to the current market context will provide us with the best foundation to execute our strategy. We are confident that our teams' proactive and efficiency-driven mindset will enable us to achieve our company-wide target, thereby making a significant contribution to the 2030 RISE ambitions."

³ Net capital expenditures = capex – government grants and subsidies + equity contribution (e.g. Ionway).

⁴ More information can be found in the Financial Review – Hedging section of this press release.

2024 Outlook

Since the introduction of the 2030 RISE Strategy in June 2022, Umicore has adapted its organizational structure by aligning it with its ambitious growth plan towards 2030. As announced previously, a new organization has been put in place to support the anticipated growth in Rechargeable Battery Materials. Umicore's business units are from this year onwards housed in four, instead of previously three, Business Groups. The new segmentation still reflects the important synergies and common characteristics, while at the same time bringing increased focus on the different business activities: Battery Materials, Catalysis, Recycling and Specialty Materials.

External reporting according to this new organizational structure will be implemented as from the halfyear results 2024 to be published on Friday July 26th. The outlook below, for the year 2024, is therefore already presented according to this new set-up. There is no change in the perimeters of Catalysis and Recycling.

Outlook

Based on the current market visibility and all else equal, Umicore expects revenue⁵ growth in Battery Materials with revenues in the range of € 575 million to € 675 million and an adjusted EBITDA margin around 22%. The ramp-up of new customer contracts in Europe and an improved capacity utilization in Asia will result in a significant year-on-year increase in volumes and revenues from cathode active materials (CAM), while the contribution from the upstream refining activities are expected to remain roughly in line with 2023.

Given the absence of the one-off that supported 2023 earnings as well as the impact of costs related to the ongoing ramp-up and capacity expansions in Europe and North America, earnings for the full year are expected to remain roughly in line with the previous year. Excluding this one-off effect, the underlying performance in Battery Materials is expected to increase significantly year on year.

Revenues and earnings are expected to be weighted in the second half of 2024, reflecting mainly the ramp-up profile of the new customer contracts.

In 2024, the business unit Automotive Catalysts is expected to continue to benefit from its strong market position. Growth in heavy-duty diesel volumes in China is expected to offset lower volumes in ICE light-duty vehicle applications resulting in continued strong underlying performance. Adjusted EBITDA in Catalysis is anticipated to be slightly below the level of the previous record year, close to current market expectations⁶ , in a context of a lower PGM price environment and taking into account the current strategic metal hedges.

Precious Metals Refining is expected to post solid underlying performance particularly in the second half of the year, with a maintenance shutdown of the smelter anticipated to impact volumes in the first half. Earnings of the Recycling Business Group will feel the effect of a less favorable precious metal price environment. Assuming current metal prices were to prevail throughout the year and taking into account the current strategic metal hedges, it is expected that the 2024 adjusted EBITDA for the Business Group will be below the level of the previous year, still well above the pre-2020 levels and in line with current market expectations⁶ .

In Specialty Materials, Umicore anticipates continued strong performance in Electro-Optic Materials, partially offsetting less favorable market conditions impacting the performance of the business units Cobalt and Specialty Materials and Metal Deposition Solutions. It is expected that the 2024 adjusted EBITDA for the Business Group will be somewhat below the level of the previous year.

It is anticipated that Corporate costs will be € 15 to € 20 million lower in 2024 versus 2023.

Based on the above, Umicore expects Groups' adjusted EBITDA for the full year 2024 to be in the range of € 900 million to € 950 million.

⁵ All revenue elements less the value of the following purchased metals: Co, Ni, Li and Mn.

⁶ VARA consensus as at February 15th 2024.

Key figures (in million €)	H2 2022	H2 2023	2022	2023
Turnover	12,546	8,254	25,436	18,266
Revenues (excluding metal)	2,093	1,809	4,155	3,876
Adjusted EBITDA	550	453	1,151	972
of which associates and joint ventures	5	0	16	1
EBITDA adjustments	(12)	(69)	(32)	(82)
EBITDA	538	384	1,118	890
Adjusted EBITDA margin	26.0%	25.0%	27.3%	25.0%
Adjusted EBIT	404	300	865	674
EBIT adjustments	(12)	(69)	(32)	(82)
Total EBIT	392	231	832	591
Adjusted EBIT margin	19.0%	16.6%	20.4%	17.4%
Effective adjusted tax rate	16.5%	16.8%	20.0%	21.6%
Adjusted net profit, Group share	272	214	593	447
Net profit, Group share	261	162	570	385
R&D expenditure	175	134	316	281
Capital expenditure	280	522	470	857
Net cash flow before financing	(76)	247	153	94
Total assets, end of period	9,942	9,966	9,942	9,966
Group shareholders' equity, end of period	3,516	3,661	3,516	3,661
Consolidated net financial debt, end of period	1,104	1,266	1,104	1,266
Gearing ratio, end of period	23.6%	25.5%	23.6%	25.5%
Net debt / LTM adj. EBITDA	0.96x	1.30x	0.96x	1.30x
Capital employed, end of period	4,716	5,002	4,716	5,002
Capital employed, average	4,595	5,049	4,511	4,977
Return on capital employed (ROCE)	17.6%	11.9%	19.2%	13.5%
Workforce, end of period (fully consolidated) Workforce, end of period (associates and joint ventures) Total recordable injury rate (TRIR)	11,565 2,664 9.0	11,948 2,109 7.5	11,565 2,664 9.0	11,948 2,109 7.5

Key figures per share	H2	H2
(in € / share)	2022	2023	2022	2023
Total number of issued shares, end of
period	246,400,000	246,400,000	246,400,000	246,400,000
of which shares outstanding	240,200,659	240,400,917	240,200,659	240,400,917
of which treasury shares	6,199,341	5,999,083	6,199,341	5,999,083
Average number of shares outstanding
basic	240,123,853	240,400,795	240,340,705	240,381,166
diluted	240,469,079	240,432,469	240,685,931	240,412,840
Adjusted EPS - basic	1.13	0.89	2.47	1.86
Basic EPS	1.09	0.67	2.37	1.60
Diluted EPS	1.09	0.67	2.37	1.60
Dividend payout	0.25	0.25	0.80	0.80
Net cash flow before financing, basic	-0.32	1.03	0.64	0.39
Total assets, end of period	41.39	41.45	41.39	41.45
Group shareholders' equity, end of period	14.64	15.23	14.64	15.23

Segment split

CA = Catalysis, E&ST = Energy & Surface Technologies, RE = Recycling Corporate not included

Catalysis

Catalysis key figures (in million €)	H2 2022	H2 2023	2022	2023
Total turnover	3,831	2,667	7,738	6,243
Total revenues (excluding metal)	879	857	1,776	1,804
Adjusted EBITDA	213	209	419	436
EBITDA	204	200	408	427
Adjusted EBITDA margin	24.2%	24.4%	23.6%	24.2%
Adjusted EBIT	172	172	342	364
Total EBIT	163	163	331	355
Adjusted EBIT margin	19.6%	20.1%	19.2%	20.2%
R&D expenditure	68	66	139	128
Capital expenditure	45	43	67	76
Capital employed, end of period	1,564	1,014	1,564	1,014
Capital employed, average	1,525	1,125	1,522	1,263
Return on capital employed (ROCE)	22.6%	30.6%	22.5%	28.8%
Workforce, end of period (fully consolidated)	3,080	3,076	3,080	3,076

Overview 2023 performance

The Catalysis Business Group delivered record results for the third consecutive year. Revenues reached € 1,804 million and adjusted EBITDA amounted to € 436 million, up respectively 2% and 4% compared to the previous year. Catalysis' performance was mostly driven by Automotive Catalysts. Sales volumes and revenues for the business unit increased, benefiting from a rebound in the Chinese heavy-duty diesel production as well as year-on-year growth in global light-duty ICE production. In addition, Automotive Catalysts made further strong progress on efficiency improvements. The Business Group generated substantial free cash flow. The adjusted EBITDA margin for the Business Group amounted to 24.2%.

2023 Business Review

Global ICE car production grew (+7.8%) over the course of 2023 on the back of improved market conditions. In particular the resolution of the supply constraints, that impacted the automotive market over the past years, and a related catch-up in the backlog, resulted in a significant rebound in car production. All regions benefited from this upward trend, with in particular Europe (+9.1%), China (+9.8%) and North-America (+7.1%) posting robust year-on-year growth.

The business unit Automotive Catalysts increased revenues following strong performance in Europe, as well as in other regions, which was partially offset by a weaker performance in China due to a less favorable customer mix in the light-duty gasoline activities. The solid increase in the business unit's earnings was supported by the higher volumes as well as continuous efforts on efficiency gains. As announced previously and as part of the 2030 RISE strategy, Automotive Catalysts has implemented an agile operational approach to capture peak profitability. In that context, Umicore has decided to transfer (over the coming years) the catalyst production activities of the Himeji plant (Japan) into other Umicore automotive catalyst production plants.

Light-duty vehicles⁷

The light-duty vehicle segment accounted for 84% of Automotive Catalysts' revenues in 2023, of which 81% is related to the light-duty-gasoline activities.

The European ICE market, which represented 27% of Umicore's global light-duty catalyst volumes, increased with 9.4% year-on-year, reflecting robust demand and a gradual resolution of supply chain hurdles resulting in a catch-up in car production. Umicore again substantially outperformed the European market, both in volumes (+14%) and revenues, benefiting in particular from a good customer mix combined with the launch of new light-duty gasoline platforms.

The Chinese ICE market, which represented 25% of Umicore's global light-duty catalyst volumes, grew 5.5% compared to the previous year. After a weaker start of the year, the Chinese ICE car market was particularly strong in the second half of the year, mainly driven by the solid performance of the local OEMs. Umicore's volumes (-11%) and revenues were lower year on year due to a less favorable platform and customer mix.

The North and South American ICE markets, which represented together 27% of Umicore's global light-duty catalyst volumes, were up (+6.5%) compared to the previous year reflecting continued robust consumer demand in both markets. Umicore's volumes (+3%) also grew year on year. While in the North American market Umicore's volumes only slightly increased versus 2022 as a result of a less favorable customer mix, volumes were well up in the South American market driven by a favorable customer mix.

Umicore's volumes (+87%) and revenues grew substantially compared to an overall flat ICE market in India and Thailand (+0.8%). Umicore benefited in particular from the ramp-up of new platforms as well as a very favorable customer and platform mix in India which allowed it to strongly outpace the market.

Heavy-duty diesel vehicles⁸

The heavy-duty diesel (HDD) segment accounted for 16% of the business unit's revenues in 2023. Umicore's global HDD volumes grew in line with the global market (+23%).

The Chinese HDD market, which accounted for 40% of Umicore's global heavy-duty diesel volumes, grew substantially over the course of 2023, recovering from the significant contraction incurred in 2022. Umicore's volumes and revenues in the region reflected the pickup in truck production.

The European HDD market represented 49% of Umicore's global heavy-duty diesel volumes. Umicore's volumes and revenues outperformed the European market as a result of a favorable customer and platform mix.

Revenues for Precious Metals Chemistry declined compared to the previous year. Revenues for homogenous catalysts decreased, reflecting the combined effect of continued low activity in the construction sector which negatively impacted demand from bulk applications, as well as a slowdown in demand from catalysts used in life science applications in the second half of the year. This could only be partially compensated by substantially higher revenues for inorganic chemicals, benefiting from increased demand from the automotive market. Performance of the business unit was further affected by the decline in PGM prices, although this could to a certain extent be mitigated by existing strategic metal hedges.

⁷ Source market data: IHS.

⁸ Source market data: KGP.

Revenues for Fuel Cell & Stationary Catalysts were above the level of the previous year, reflecting substantially higher revenues for stationary catalysts. The activity benefited from solid demand in the chemical, refining, power and large engine end-markets, as well as a favorable product mix throughout the year. Revenues in proton-exchange-membrane (PEM) fuel cell catalysts for the transportation sector were impacted by a general slowdown in PEM fuel cell catalysts' key markets for fuel cellpowered vehicles. The foreseen pick-up in demand in this segment was in addition delayed by the current unfavorable environment in China. Volumes of PEM catalysts used in green electrolysis increased versus 2022 on the back of growing customer demand. The expansion of production capacity as well as R&D efforts in order to continue to provide market leading technology and services to customers result in lower earnings.

Based on a strong customer pipeline, Umicore launched the construction of its greenfield plant for the mass production of PEM fuel cells and electrolysis catalysts in Changshu, China with a groundbreaking ceremony held on 1 December 2023. This new greenfield plant is expected to be the world's largest PEM catalysts production facility to date. It will be scalable to meet the future growth of the business unit's customer portfolio. The plant is expected to become operational early 2026.

Energy & Surface Technologies

Energy & Surface Technologies
key figures (in million €)	H2 2022	H2 2023	2022	2023
Total turnover	2,745	1,507	4,974	3,394
Revenues (excluding metal)	646	479	1,278	1,067
Adjusted EBITDA	118	127	290	259
of which associates and joint ventures	2	(2)	5	(3)
EBITDA	120	95	292	227
Adjusted EBITDA margin	18.0%	26.9%	22.3%	24.6%
Adjusted EBIT	55	60	166	127
Total EBIT	57	28	169	95
Adjusted EBIT margin	8.2%	12.8%	12.6%	12.2%
R&D expenditure	66	33	107	83
Capital expenditure	167	399	296	646
Capital employed, end of period	2,751	3,468	2,751	3,468
Capital employed, average	2,617	3,372	2,498	3,193
Return on capital employed (ROCE)	4.2%	3.5%	6.7%	4.0%
Workforce, end of period (fully consolidated) Workforce, end of period (associates and joint ventures)	3,991 821	4,277 655	3,991 821	4,277 655

Overview 2023 performance

Revenues for Energy & Surface Technologies amounted to € 1,067 million in 2023 compared to € 1,278 million in 2022. The decrease mainly results from lower revenues for Rechargeable Battery Materials. These reflect the combined impact of a lower non-recurring lithium effect and lower volumes for cathode active materials from legacy contracts. Adjusted EBITDA amounted to € 259 million, with a slight increase in earnings for Rechargeable Battery Materials supported by a substantial one-off related to lower costs from mass production test runs and valuation of battery production scraps. Cobalt & Specialty Materials reported, as expected, a substantial decline in earnings. This combined with solid performance of the business units Electro-Optic Materials and Metal Deposition Solutions resulted in an EBITDA margin of 24.6% for the Business Group.

2023 Business Review

In 2023, revenues for Rechargeable Battery Materials were below the level of the previous year reflecting a lower non-recurring lithium effect and lower revenues for cathode active materials from legacy contracts. Revenues for upstream refining activities were up year on year. Earnings for Rechargeable Battery Materials were slightly above the level of the previous year supported by a substantial one-off related to lower costs from mass production test runs and valuation of battery production scraps.

Over the course of 2023 Umicore made further strong progress in the execution of its 2030 RISE strategy, reaching key milestones:

• Umicore secured close to € 1 billion of non-refundable government grants for its capacity expansions in North America and Europe.
• It signed a long-term CAM supply agreement with a Chinese battery OEM which will further improve capacity utilization in China over the course of 2024.
• IONWAY, the JV backed by Umicore and Volkswagen Group-owned PowerCo, decided to build its first cathode materials production plant in Nysa, Poland, adjacent to Umicore's existing plant. The project received strong support from the Polish Government with € 350 million in cash grants under the Temporary Crisis and Transition Framework. IONWAY will produce high-performance battery materials to supply PowerCo's European battery cell gigafactories.
• Umicore launched the construction of a 35 GWh equivalent battery materials production plant in Ontario, Canada, combining the production of precursor (pCAM) and CAM to serve the North American market. It received substantial financial support of €0.58 billion from the Governments of Canada and Ontario for this key project given its significance in the establishment of a North American local-for-local EV supply chain. This follows the signature with AESC of a ten-year agreement to supply high-nickel battery materials to AESC's North American manufacturing facilities. The supply agreement will run from 2026 to 2035 and secures an annual volume offtake equivalent to 50 GWh by the end of the decade.

Umicore's order book for battery materials currently stands at 190 GWh contracted CAM volumes for 2027 and 270 GWh for 2030. End 2023, Umicore's global battery materials production capacity amounted to 85 GWh, with its gigafactories in Asia (China & Korea) representing 65 GWh. In Europe, Umicore expanded its capacity to 20 GWh by the end of 2023. The planned expansions⁹ - based on secured value creative customer contracts and partnerships will closely match the customer ramp-up trajectories, resulting in a total global installed cathode materials production base of 195¹⁰ GWh by end 2026. The capacity in Europe and North America will be optimally utilized through secured contracts beyond 2030 with the production footprint in Asia providing flexibility and further upside on capacity utilization.

As a circular materials technology company, innovation is at the heart of Umicore's success.

During the "At the Core of Battery Materials" event in November 2023, the Group demonstrated its technology leadership and provided the market with an insight into the breadth and depth of its technology roadmap, highlighting its strong R&D position in battery materials.

⁹ Further details of the Group's capital expenditure can be found in the Financial Review. ¹⁰ Including the IONWAY capacity in Europe.

As anticipated, revenues for Cobalt & Specialty Materials were well below the previous year which was marked by an exceptionally strong first half. The combination of a slowdown in demand and related customer destocking behavior, substantially declining cobalt and nickel prices - after record levels in 2022 - and lower premiums, impacted the performance of the cobalt and nickel chemicals refining and distribution activities. Revenues for tool materials were well below the level of the previous year as the segment faced a decline in demand from the diamond and hard metal tools end-markets in a context of weaker economic activity. After the exceptional order levels recorded in 2021 and 2022, revenues from carboxylates decreased significantly following a slowdown in demand from the industrial sector as a result of the more challenging economic environment. In an extremely competitive market context, distribution margins were adversely affected resulting, combined with lower revenues, in a further decline in earnings for the business unit.

Revenues for Metal Deposition Solutions were stable compared to the previous year. The successful introduction of new electrolytes for portable electronics combined with solid demand for decorative applications resulted in higher year-on-year revenues in electroplating activities. This was offset by revenues well below the previous year in thin film products where demand from the semiconductor industry slowed down in an overall challenging market environment.

Revenues for Electro-Optic Materials increased substantially year on year. Revenues for germanium solutions were well above the level of the previous year reflecting high demand for germanium substrates particularly for space power applications in the second half of the year.

On August 1st 2023, the Chinese Ministry of Commerce introduced an export control on germanium and gallium. In a market context of constraint supply, the business unit benefited from its robust germanium supply portfolio to secure continued operations and supplies to customers. In addition, Umicore is one of a few companies that is capable of recycling germanium from different streams. In 2023 the business unit successfully increased refining and recycling throughput and the majority of Electro-Optic Materials' germanium needs came from recycled feed, reducing the business unit's dependence on primary germanium supplies.

Recycling

Recycling key figures (in million €)	H2 2022	H2 2023	2022	2023
Total turnover	7,212	4,664	15,338	10,066
Total revenues (excluding metal)	569	476	1,107	1,013
Adjusted EBITDA	275	167	532	372
EBITDA	280	158	532	358
Adjusted EBITDA margin	48.3%	35.1%	48.1%	36.7%
Adjusted EBIT	241	129	463	295
Total EBIT	246	119	463	282
Adjusted EBIT margin	42.4%	27.0%	41.8%	29.2%
R&D expenditure	11	14	24	27
Capital expenditure	52	48	81	82
Capital employed, end of period	347	456	347	456
Capital employed, average	386	462	415	435
Return on capital employed (ROCE)	125.0%	55.6%	111.6%	67.9%
Workforce, end of period (fully consolidated)	2,996	2,861	2,996	2,861

Overview 2023 performance

The Recycling business group revenues stood at € 1,013 million in 2023, down 9% year-on-year. Adjusted EBITDA amounted to € 372 million, down 30%, reflecting a context of substantially declining PGM prices over 2023, as well as the impact of cost inflation mainly in the first half of the year. These headwinds were partially mitigated by the strong performance of the Precious Metals Management business unit, strategic metal hedges, as well as the introduction of an efficiency program which going forward will result in increased cost efficiencies to counteract the decreased PGM price environment. In a challenging market environment, the Recycling segment delivered an overall robust performance, substantially above the pre-2020 levels, the year in which the rhodium price started to peak.

2023 Business Review

2023 was marked by a volatile precious metal price environment. The prices of gold and silver fluctuated, but remained overall at high levels. The PGM prices were, however, in continued decline over the course of the year. This was in particular the case for rhodium and palladium in a context of subdued end-market demand. Umicore was able to mitigate to a certain extent the impact of the lower PGM spot prices on revenues and earnings through previously secured strategic metal hedges.

Revenues for Precious Metals Refining were well below the level of the previous year, impacted by a less favourable metal price environment. Increased operating expenses mainly related to higher labour costs in Belgium further weighed on the business unit's earnings. The generally long-term nature of the contracts combined with a more challenging supply environment only allowed for partial passthrough of cost inflation into pricing. As part of the overall Efficiency for Growth program of the Group, the business unit further accelerated its operational excellence efforts to counter inflation with automation and digitization initiatives, as well as other measures to improve operational performance.

Overall processed volumes in the Hoboken plant (Belgium) remained robust with the volumes roughly in line with the levels of 2022. The input mix was less favourable due to lower availability of PGM-rich recyclables, such as spent automotive and industrial catalysts, in an overall more challenging supply environment. In this context, Precious Metals Refining continued to focus on actively leveraging its unique recycling technology by maximizing as much as possible the intake of the most attractive, highly complex PGM materials, at the benefit of the value rather than the volume of the input mix.

Revenues for Jewelry & Industrial Metals decreased compared to a strong performance in 2022, reflecting primarily the impact of a substantial decline in PGM prices in its recycling and refining activities. Revenues from the product business were significantly below the level of previous year with volumes of platinum based glass applications facing lower customer demand after a very strong 2022. Order levels for gold investment products decreased over 2023 after a period of exceptional safehaven buying. The same trend impacted order levels for silver coins and investment products as of the second half of the year. This was partially offset by higher sales of jewelry products supported by a continued solid demand from the luxury end-market. In October 2023, Umicore finalized the disposal of Umicore Electrical Materials in the USA, which was previously part of Umicore Technical Materials, divested in 2017.

The earnings contribution from Precious Metals Management increased significantly year-on-year, with favorable trading conditions in a context of highly volatile precious metals prices - mainly in the first half of the year – more than offsetting lower demand for gold and silver investment bars.

Umicore's Battery Recycling Solutions business unit is a key enabler for sustainable electrification of the automotive industry. It provides access to critical recycled metals and allows closed-loop, environmentally friendly, low carbon battery manufacturing. The business unit is preparing for the exponential increase of battery scraps and end-of-life batteries to be recycled towards 2030, driven by regulatory frameworks and accelerating vehicle electrification. The business unit is evaluating the best location for its larger-scale European battery recycling plant, while continuing to focus on building the required ecosystem and on recycling scrap from European battery plants in their ramp-up at its industrial pilot plant in Hoboken (Belgium).

Corporate

Corporate key figures (in million €)	H2 2022	H2 2023	2022	2023
Adjusted EBITDA	(56)	(50)	(91)	(95)
of which associates and joint ventures	4	2	11	4
EBITDA	(66)	(69)	(114)	(123)
Adjusted EBIT	(64)	(60)	(106)	(113)
Total EBIT	(74)	(79)	(130)	(141)
R&D expenditure	30	21	46	43
Capital expenditure	17	33	25	54
Capital employed, end of period	55	64	55	64
Capital employed, average	67	89	76	87
Workforce, end of period (fully consolidated) Workforce, end of period (associates and joint ventures)	1,498 1,843	1,734 1,454	1,498 1,843	1,734 1,454

Corporate Review

Element Six Abrasives' contribution to Umicore's adjusted EBITDA decreased compared to the previous year, reflecting lower revenues due to challenging market conditions across all business lines throughout 2023. Revenues from oil and gas drilling equipment decreased year on year, impacted by declining oil production targets and a related slowdown in drilling activity in the US. Revenues for carbide-based materials used in the mining, agricultural and road planing end-markets were affected by subdued demand in the European tungsten carbide market in particular in the second half of the year, as well as a limited ability to translate an increasing raw materials cost base into pricing. Revenues in the precision tooling business also decreased, reflecting a collapse in the Chinese construction market and customers' destocking behavior.

In August 2023, Umicore sold its non-strategic 40% stake in IEQSA, a Peruvian company active in the transformation and production of zinc-based products.

Research & development

In 2023, R&D expenditures in fully consolidated companies amounted to € 281 million, down 11.1% compared to € 316 million in 2022, mainly enabled by R&D savings in Automotive Catalysts and the reduced costs for mass production test runs in Battery Materials. In 2023, Umicore continued to increase R&D spends on new product and process technologies in Rechargeable Battery Materials and increased R&D efforts in battery recycling.

As a circular materials technology company, innovation is at the core of Umicore's success. During its "At the Core of Battery Materials" event the Group demonstrated its technology leadership and provided the market with a view on its breadth and depth technology roadmap highlighting its strong R&D position.

In parallel with its own research and inhouse work, Umicore develops technologies with third parties, like start-ups and scale-ups, as well as academic organizations. Part of Umicore's innovation efforts are pursued through open innovation partnerships with external players of the innovation ecosystem. Co-developing products, processes or business models with different partners across the value chain is key to innovation success.

In that context Umicore invested in 2023 a minority stake in Blue Current, a US based start-up. This investment complemented the joint development agreement whereby both companies were able to integrate Umicore's battery materials in Blue Current's solid-state battery technology. Solid-state batteries will bring a number of benefits compared to current lithium-ion battery technologies, allowing electric vehicle designers to create smaller, lighter, and lower-cost battery packs with greater safety, increased driving range and faster charging. In addition, over the course of the year, Umicore and Idemitsu also progressed on the joint development of their catholyte composite innovative product for solid-state batteries.

In the framework of its long-term battery materials technology roadmap, Umicore inaugurated in 2023 one of the world's largest solid-state battery material prototyping facilities in Olen, Belgium. This unique prototyping center will enable Umicore Battery Materials to further scale up and accelerate its innovation and technology leadership in solid-state batteries chemistries, one of the next generation technology on the horizon for electric vehicles.

In 2023 the Group continued to further expand its research activities globally. In October, Umicore opened a new research innovation center in Shanghai, China, in order to attract local talents and be at the source of the latest innovation trends in the region. In the near future, Umicore will set up applied technology laboratories in Loyalist, Canada as well as in Hanau, Germany.

The R&D spend represented 7.3% of Umicore's 2023 revenues and capitalized development costs accounted for € 28 million of the total amount.

Progress in sustainability roadmap¹¹

Umicore's mission to be a Sustainability Champion as a pillar of its 2030 RISE strategy is designed to accelerate the transition to a sustainable future through sustainable and circular products and services. As part of this mission, Umicore's "Let's go for zero" ESG ambitions (Zero scope 1+2 GHG emissions, Zero Harm, Zero Inequality, Best in Class Governance) capture the strong commitment to maximize Umicore's positive impact on society.

In a further key step in the Group's decarbonization journey, Umicore unveiled its Climate Transition Plan in 2023, underscoring its commitment to climate action, resilience, and transparency. This plan not only captures ongoing efforts to reduce greenhouse gas emissions across the Group's operations but also how Umicore engages its entire value chain in driving meaningful climate impact. Efficiency and securing long-term green Power Purchase Agreements (PPAs) are key levers for the Group's sustainable growth. In 2023, Umicore secured 41% of its global electricity needs from renewables, up from 35% in the previous year, and Umicore's European activities were powered by 57% renewable electricity in 2023.

Umicore recognizes diversity as a catalyst for innovation and sustainable growth and as a core principle of its Zero Inequality ambitions. In 2023, the Group continued initiatives to attract, develop, and retain a workforce as diverse as the world itself, spanning cultures, genders, nationalities, and experience. The number of employees in the fully consolidated companies increased from 11,565 at the end of 2022 to 11,948 at the end of 2023, with most of the growth coming from Umicore's cathode materials plant in Nysa, Poland. The evolution reflects Umicore's dedication to creating an environment where the brightest and most talented individuals worldwide can thrive and contribute to its mission and strategy.

Umicore is determined to reach the highest level of occupational and process safety in all facilities as part of ensuring Zero Harm, with an ambition to achieve zero work-related injuries. A strengthened EHS function at Group level, combined with a hands-on approach and increased engagement, resulted in the Group's safety performance improving compared to 2022 from a total recordable injury rate (TRIR) perspective, at 7.5 per million exposure hours. Umicore is progressing on track with its roadmap to creating a more robust caring safety culture, developing safety coaching skills and ensuring continuous improvement of its safety programs.

Responsible sourcing remains a fundamental part of Umicore's sustainability approach. In 2023, Umicore added dedicated Nickel and Lithium sourcing frameworks to its sustainable battery materials sourcing approach. Umicore's mission is deeply embedded in its value chain, where the Group upholds ethical standards and conducts rigorous due diligence while also engaging its suppliers on decarbonization. Beyond this, collaboration, partnerships, and strategic sourcing are the key elements of Umicore's approach, as illustrated by the long-term agreement with Terrafame Ltd. for the supply of low carbon, sustainable high-grade nickel sulphate signed in 2023. 

¹¹ Full 2023 ESG (Environmental, Social and Governance) performance data will be published on March 22, 2024, in the integrated annual report.

Financial review

Financial result and taxation

Adjusted net financial charges totaled € 110 million, compared to € 125 million in the same period last year reflecting lower foreign exchange related costs. Net interest expenses remained largely in line with previous year.

The adjusted tax charge for the period amounted to € 121 million, down compared to € 145 million over the same period last year reflecting the lower year-on-year taxable profit, against a somewhat higher adjusted effective Group tax rate (21.6% versus 20.0% in 2022). Taking into account the tax effects on adjustments, the net tax charge for the Group amounted to € 105 million. The total tax paid in cash over the period amounted to € 209 million, versus € 216 million last year. 

Cash flows and financial debt

Cash flow generated from operations including changes in net working capital amounted to € 1,217 million, compared to € 835 million last year. After deduction of € 885 million of capital expenditures and capitalized development expenses, the resulting free cash flow from operations came in at € 332 million, compared to € 344 million in the same period last year. 

At 31 December 2023 adjusted EBITDA amounted to € 972 million, 16% below the € 1,151 million registered in 2022. This corresponds to an adjusted EBITDA margin of 25.0% for the Group, well in line with Umicore's 2030 RISE target.  

In Catalysis, EBITDA margin was favorably impacted by increasing volumes and operational efficiencies, compensating for the lower PGM price levels. In Energy & Surface Technologies, EBITDA margin improved thanks to the slight increase in earnings in Rechargeable Battery Materials combined with the solid performance of the business units Electro-Optic Materials and Metal Deposition Solutions. In Recycling, the decline in precious metal prices and further cost inflation resulted in a reduced EBITDA margin.

Net working capital for the Group decreased by € 346 million compared to the end of 2022. Working capital needs in Catalysis decreased due to the reduction of inventory levels, thanks to further optimization and lower PGM price levels. In Energy & Surface Technologies, increase in working capital in anticipation of growing volumes was largely offset by the decrease in battery metal prices, while in Recycling the working capital increased.  

Capital expenditures amounted to € 857 million at the end of 2023, compared with € 470 million the previous year. Taking into account investments in Rechargeable Battery Materials' greenfield plants in Poland and Canada, Energy & Surface Technologies accounted for close to three quarters of Group capital expenditures. Capitalized development expenses amounted to € 28 million, up versus 2022. In October 2023, Umicore announced that the total net capital expenditures¹² for the Group between 2022 and 2026 are expected to amount to € 3.8 billion, representing an average annual net capital expenditures run-rate of approximately € 800 million.

Dividend payments over the period amounted to € 196 million. Umicore contributed € 79 million in equity to IONWAY, its joint venture with PowerCo.  

¹² Net capital expenditures = capex – government grants and subsidies + equity contribution (e.g. Ionway).

The reduction in working capital compensated to a large extent for the higher capital expenditures and lower EBITDA, resulting in a moderate increase of net financial debt at the end of 2023 to € 1,266 million versus € 1,104 million at the end of 2022. In the last quarter of 2023, Umicore signed a new 5 year Revolving Credit Facility (RCF) of € 600 million issued under the Sustainability-Linked Loan (SLL) format, with a solid pool of international banks. This RCF replaces the € 495 million Syndicated Bank Credit Facility expiring in 2025, and comes in addition to the existing € 500 million inaugural sustainability-linked RCF contracted in 2021. Early 2024, Umicore concluded an 8-year loan agreement with the European Investment Bank (EIB) for € 350 million financing the Group's R&D activities. The leverage ratio amounted to 1.3x LTM adjusted EBITDA (versus 1.0x end of 2022). The Group's equity amounted to € 3,697 million, corresponding to a net gearing ratio (net debt / net debt + equity) of 25.5%.

Adjustments

Adjustments had a negative impact of - € 82 million on EBIT of which - € 13 million was already accounted for in the first half. In Catalysis, - € 9 million is related to the announced plant closure and applied tech center restructuring in Japan (Himeji plant). In Energy & Surface Technologies, -€ 32 million is primarily resulting from the impairment of capitalized development expenses and obsolete assets. In Recycling, - € 14 million is largely resulting from a loss on the divestment of an historical technical materials activity in North America (Umicore Electrical Materials).

In Corporate, - € 28 million is resulting from (i) the creation of a separate legal entity for the Rechargeable Battery Materials activities; (ii) the increase in some environmental provisions related to legacy remediation initiatives; (iii) the loss on the divestment of a historical activity in zinc chemicals (IEQSA); and (iv) the settlement of a historical litigation related to the divestment of Building Products.  

Including positive adjustments to financial and tax items of € 1 million and € 16 million respectively, and taking into account minority interests of € 4 million, the total adjustments to net Group earnings over the period corresponded to a negative impact of € 62 million. 

Hedging

Umicore is stepping up its strategic metal hedging approach to reduce volatility, to increase visibility on future cash flows and to protect future earnings of exposure to certain precious metal prices. Over the course of 2023, it has entered into forward contracts covering for a substantially longer period and a significantly larger portion of its structural price exposure compared to its past approach.

Umicore entered into forward contracts to cover a substantial part of its expected structural price exposure to certain precious metals already up to 2028. For 2024, based on the respective currently expected exposures, the following lock-ins have been secured: close to three quarters for palladium, more than two thirds for rhodium, close to two thirds for gold, close to half for silver, and above one quarter for platinum. For 2025, the lock-in ratios are: close to three quarters for palladium and rhodium, more than half for gold and silver, and less than one quarter for platinum. For 2026, close to three quarters of the exposure has been locked in for palladium and rhodium, half for gold and silver, and less than one quarter for platinum. For 2027, more than half for palladium, more than one third for gold, and less than one quarter for silver, rhodium and platinum has been locked in. For 2028, more than one third for gold, close to one third for palladium, one quarter for silver, and less than a quarter for platinum has been locked in. 

Next to strategic metal hedges, the Group manages a portion of its forward energy price risks by entering into energy hedges. Currently, Umicore has hedges in place that cover over two thirds of its expected European electricity and natural gas needs for 2024 and 2025. For 2026 and 2027, more than half of the electricity and over three quarters of the natural gas needs for the European activities are hedged. For 2028, over half of the electricity needs and less than a quarter of the natural gas needs for the European activities are hedged. 

Dividend and shares

The Supervisory Board will propose a gross annual dividend of € 0.80 per share at the Annual General Meeting on 25 April 2024. This compares to a full dividend of € 0.80 per share paid out for the financial year 2022. Taking into account the interim dividend of € 0.25 per share paid out in August 2023 and subject to shareholder approval, a gross amount of € 0.55 per share will be paid out on 4 May 2024.  

During the year, Umicore used 133,700 of its treasury shares in the context of the exercise of stock options, 42.237 for bonus conversions and 24.321 for shares granted. In the course of 2023, Umicore did not buy back own shares. On 31 December 2023, Umicore owned 5.999.083 of its own shares representing 2,43 % of the total number of shares issued as of that date.

Statutory auditor's note on the consolidated financial information for the year ended on 31 December 2023

The statutory auditor, EY Bedrijfsrevisoren BV, represented by Marnix Van Dooren and Eef Naessens, has confirmed that the audit, which is substantially complete, has to date not revealed any material misstatement in the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity or the consolidated statement of cash flow as included in this press release.

Brussels, 15 February 2024

EY Bedrijfsrevisoren BV

Statutory auditor Represented by

Marnix Van Dooren* Eef Naessens* Partner Partner

*Acting on behalf of a BV/SRL *Acting onbehalf of a BV/SRL

Management responsibility statement

I hereby certify that, to the best of my knowledge, the Consolidated Financial Information of 2023 prepared in accordance with International Financial Reporting Standards, as adopted by the European Union, and with the legal requirements applicable in Belgium, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and the undertakings included in the consolidation. The commentary on the overall performance of the Group from page 1 to 18 includes a fair review of the development and performance of the business and the position of the Group and its undertakings included in the consolidation.

Brussels, 15 February 2024

Mathias Miedreich Chief Executive Officer

Consolidated financial information for the year ended on 31 December 2023

Consolidated income statement
(in million €)	2022	2023
Turnover	25,435.5	18,265.9
Other operating income	184.6	148.5
Operating income	25,620.1	18,414.4
Raw materials and consumables	(22,875.5)	(15,778.9)
Payroll and related benefits	(906.5)	(981.4)
Depreciation and impairments	(328.4)	(351.1)
Other operating expenses	(696.6)	(707.3)
Operating expenses	(24,807.1)	(17,818.6)
Income (loss) from other financial assets	5.7	(5.1)
Result from operating activities	818.7	590.7
Financial income	7.3	34.7
Financial expenses	(101.7)	(135.4)
Foreign exchange gains and losses	(27.7)	(8.3)
Share in result of companies accounted for using the equity method	13.5	0.4
Profit (loss) before income tax	710.0	482.0
Income taxes	(137.6)	(104.9)
Profit (loss) from continuing operations	572.4	377.1
Profit (loss) of the period	572.4	377.1
of which minority share	2.5	(8.0)
of which Group share	569.9	385.1
(in € / share)
Total basic earnings per share	2.37	1.60
Total diluted earnings per share	2.37	1.60
Dividend payout per share	0.80	0.80

Consolidated statement of comprehensive income
(in million €)	2022	2023
Profit (loss) of the period from continuing operations	572.4	377.1
Items in other comprehensive income that will not be reclassified to P&L
Changes due to remeasurements of post employment benefit obligations	92.6	(37.2)
Changes in deferred taxes directly recognized in other comprehensive income Items in other comprehensive income that may be subsequently reclassified to P&L	(26.2)	10.1
Changes in other equity investments at FV through OCI reserves Changes in cash flow hedge reserves Changes in deferred taxes directly recognized in other comprehensive income Changes in currency translation differences Other comprehensive income from continuing operations	8.0 (49.4) 11.2 18.9 55.1	(7.5) 33.3 (9.3) (53.6) (64.1)
Total comprehensive income for the period of which Group share of which minority share	627.5 627.0 0.5	313.0 322.3 (9.3)

Consolidated balance sheet

(in million €)	31/12/2022	31/12/2023
Non-current assets	3,394.1	4,154.5
Intangible assets	343.4	381.0
Property, plant and equipment	2,532.3	3,036.7
Investments accounted for using the equity method	158.9	314.7
Other equity investments	22.2	19.5
Loans granted	2.6	2.4
Trade and other receivables	18.7	29.7
Deferred tax assets	316.0	370.3
Current assets	6,548.3	5,811.1
Loans granted	1.3	0.2
Inventories	3,393.7	2,850.1
Trade and other receivables	1,830.5	1,357.5
Income tax receivables	82.9	87.8
Cash and cash equivalents	1,239.9	1,515.5
Total assets	9,942.4	9,965.7
Equity of the Group	3,566.1	3,697.4
Group shareholders' equity	3,516.5	3,661.1
Share capital and premiums	1,384.3	1,384.3
Retained earnings	2,526.1	2,715.6
Currency translation differences and other reserves	(127.9)	(177.2)
Treasury shares	(266.0)	(261.6)
Minority interest	49.6	36.4
Non-current liabilities	2,242.0	2,672.3
Provisions for employee benefits	286.5	314.8
Financial debt	1,626.2	2,019.4
Trade and other payables	48.0	95.1
Deferred tax liabilities	30.0	28.7
Provisions	251.3	214.2
Current liabilities	4,134.3	3,596.0
Financial debt	717.3	728.7
Trade and other payables	3,110.1	2,591.4
Income tax payable	262.0	222.8
Provisions	45.0	53.0
Total equity & liabilities	9,942.4	9,965.7

Consolidated statement of changes in the equity of the Group (in million €)	Share capital & premiums	Reserves	Currency translation & other reserves	Treasury shares	Minority interest	Total for continuing operations
Balance at the beginning of 2022	1,384.3	2,151.3	(196.4)	(226.3)	54.4	3,167.3
Result of the period	-	569.9	-	-	2.5	572.4
Other comprehensive income for the period	-	-	57.1	-	(2.1)	55.1
Total comprehensive income for the period	-	569.9	57.1	-	0.5	627.5
Changes in share-based payment reserves	-	-	11.8	-	-	11.8
Dividends	-	(192.1)	-	-	(5.3)	(197.4)
Transfers	-	(3.1)	(0.5)	3.5	-	-
Changes in treasury shares	-	-	-	(43.2)	-	(43.2)
Balance at the end of 2022	1,384.3	2,526.1	(127.9)	(266.0)	49.6	3,566.1
Restated balance at the beginning of 2023	1,384.3	2,526.1	(127.9)	(266.0)	49.6	3,566.1
Result of the period	-	385.1	-	-	(8.0)	377.1
Other comprehensive income for the period	-	-	(62.8)	-	(1.4)	(64.1)
Total comprehensive income for the period	-	385.1	(62.8)	-	(9.3)	313.0
Changes in share-based payment reserves	-	-	14.1	-	-	14.1
Dividends	-	(192.3)	-	-	(3.9)	(196.2)
Transfers	-	(1.4)	(0.7)	2.1	-	-
Changes in treasury shares	-	-	-	2.3	-	2.3
Other movements	-	(1.8)	-	-	-	(1.8)
Balance at the end of 2023	1,384.3	2,715.6	(177.2)	(261.6)	36.4	3,697.4

Consolidated cash flow statement

(in million €)	2022	2023
Profit (loss) from continuing operations	572.4	377.1
Adjustments for profit of equity companies	(13.5)	(0.4)
Adjustment for non-cash transactions	411.8	304.9
Adjustments for items to disclose separately or under investing and financing
cash flows	206.6	188.6
Change in working capital requirement	(342.2)	346.5
Cash flow generated from operations	835.1	1,216.7
Dividend received	12.2	6.1
Tax paid during the period	(216.1)	(209.3)
Government grants received	2.9	29.2
Net operating cash flow	634.2	1,042.7
Acquisition of property, plant and equipment	(458.9)	(807.5)
Acquisition of intangible assets	(32.4)	(77.3)
Acquisition of / capital increase in associates and joint ventures	-	(78.9)
Acquisition of financial assets	-	(4.6)
New loans extended	(2.1)	(0.7)
Sub-total acquisitions	(493.4)	(968.9)
Disposal of property, plant and equipment	6.1	9.7
Disposal of intangible assets	0.1	-
Disposal of subsidiaries, associates and joint ventures, net of cash disposed	6.2	9.1
Repayment of loans	0.2	1.4
Sub-total disposals	12.6	20.2
Net cash flow generated by (used in) investing activities	(480.8)	(948.7)
Own shares	(43.2)	2.3
Payment of lease liabilities	(20.1)	(20.1)
Interest received	3.9	29.3
Interest paid	(70.2)	(84.7)
New loans and repayments	214.6	398.5
Dividends paid to Umicore shareholders	(192.1)	(192.3)
Dividends paid to minority shareholders	(5.6)	(3.8)
Net cash flow generated by (used in) financing activities	(112.5)	129.3
Effect of exchange rate fluctuations	14.2	19.2
Total net cash flow of the period	55.0	242.5
Net cash and cash equivalents at the beginning of the period for continuing
operations	1,166.3	1,221.3
Net cash and cash equivalents at the end of the period for continuing
operations	1,221.3	1,463.8
of which cash and cash equivalents	1,239.9	1,515.5
of which bank overdrafts	(18.5)	(51.7)

Condensed segment information 2022 (in million €)	Catalysis	Energy & Surface Technologies	Recycling	Corporate	Eliminations	Total Continued operations	Total
Total segment turnover	7,738.0	4,974.1	15,338.0	44.2	(2,658.8)	25,435.5	25,435.5
of which external turnover	7,570.3	4,957.5	12,863.5	44.2	-	25,435.5	25,435.5
of which inter-segment turnover	167.7	16.6	2,474.5	-	(2,658.8)	-	-
Total segment revenues (excluding metal)	1,776.5	1,277.6	1,106.6	-	(5.4)	4,155.2	4,155.2
of which external revenues (excluding metal)	1,775.1	1,277.4	1,102.7	-	-	4,155.2	4,155.2
of which inter-segment revenues (excluding metal)	1.3	0.2	3.9	-	(5.4)	-	-
Result from operating activities	330.6	163.6	462.7	(138.3)	0.0	818.7	818.7
of which depreciation and amortization	(77.0)	(123.8)	(69.3)	(15.9)	-	(285.9)	(285.9)
of which share in result of companies accounted for
using the equity method	-	4.9	-	8.5	-	13.5	13.5
EBITDA	407.6	292.3	532.0	(113.8)	0.0	1,118.0	1,118.0
Adjustments	(11.2)	2.1	(0.1)	(23.2)	-	(32.5)	(32.5)
Adjusted EBITDA	418.8	290.2	532.2	(90.6)	0.0	1,150.5	1,150.5
Total EBIT	330.6	168.5	462.7	(129.7)	0.0	832.1	832.1
Adjustments	(11.2)	2.1	(0.1)	(23.2)	-	(32.5)	(32.5)
Adjusted EBIT	341.8	166.4	462.9	(106.5)	0.0	864.6	864.6
Capital expenditure	67.4	295.7	81.3	25.5	0.0	469.9	469.9

Condensed segment information 2023 (in million €)	Catalysis	Energy & Surface Technologies	Recycling	Corporate	Eliminations	Total Continued operations	Total
Total segment turnover	6,242.9	3,393.9	10,066.1	35.2	(1,472.2)	18,265.9	18,265.9
of which external turnover	6,139.9	3,380.2	8,710.6	35.2	-	18,265.9	18,265.9
of which inter-segment turnover	102.9	13.7	1,355.5	-	(1,472.2)	-	-
Total segment revenues (excluding metal)	1,803.5	1,066.8	1,012.5	-	(7.2)	3,875.6	3,875.6
of which external revenues (excluding metal)	1,800.3	1,066.5	1,008.9	-	-	3,875.6	3,875.6
of which inter-segment revenues (excluding metal)	3.3	0.3	3.7	-	(7.2)	-	-
Result from operating activities	355.1	97.8	281.7	(143.9)	(0.0)	590.7	590.7
of which depreciation and amortization	(71.9)	(132.2)	(76.3)	(18.2)	-	(298.5)	(298.5)
of which share in result of companies accounted for
using the equity method	-	(2.6)	-	3.0	-	0.4	0.4
EBITDA	427.0	227.4	357.9	(122.7)	(0.0)	889.6	889.6
Adjustments	(9.1)	(31.9)	(13.7)	(27.7)	-	(82.3)	(82.3)
Adjusted EBITDA	436.1	259.3	371.6	(95.0)	(0.0)	971.9	971.9
Total EBIT	355.1	95.3	281.7	(140.9)	(0.0)	591.1	591.1
Adjustments	(9.1)	(31.9)	(13.7)	(27.7)	-	(82.3)	(82.3)
Adjusted EBIT	364.2	127.2	295.3	(113.2)	(0.0)	673.4	673.4
Capital expenditure	75.7	645.7	81.8	53.6	0.0	856.8	856.8

Impact of adjustments (in million €)	Total	of which: adjusted	Adjustment
H1 2022			s
Result from operating activities of which depreciation and amortization Share in result of companies accounted for using the	430.5 (139.7)	450.1 (139.7)	(19.6) -
equity method	10.1	10.9	(0.9)
EBITDA	580.3	600.7	(20.5)
EBIT	440.5	461.0	(20.5)
Net financial result (*)	(44.6)	(46.3)	1.7
Income taxes	(85.7)	(92.2)	6.5
Profit (loss) of the period	310.3	322.6	(12.3)
of which minority share	1.3	1.3	-
of which Group share	309.1	321.3	(12.3)
H2 2022
Result from operating activities of which depreciation and amortization Share in result of companies accounted for using the	388.2 (146.2)	398.3 (146.2)	(10.1) -
equity method	3.4	5.3	(1.9)
EBITDA	537.8	549.8	(12.0)
EBIT	391.6	403.6	(12.0)
Net financial result (*)	(77.6)	(78.5)	0.9
Income taxes	(51.9)	(52.8)	0.8
Profit (loss) of the period	262.1	272.3	(10.2)
of which minority share	1.2	0.6	0.7
of which Group share	260.8	271.7	(10.9)
2022
Result from operating activities of which depreciation and amortization Share in result of companies accounted for using the	818.7 (285.9)	848.4 (285.9)	(29.8) -
equity method	13.5	16.2	(2.7)
EBITDA	1,118.0	1,150.5	(32.5)
EBIT	832.1	864.6	(32.5)
Net financial result (*)	(122.1)	(124.8)	2.7
Income taxes	(137.6)	(144.9)	7.3
Profit (loss) of the period	572.4	594.9	(22.5)
of which minority share	2.5	1.9	0.7
of which Group share	569.9	593.1	(23.2)
H1 2023
Result from operating activities of which depreciation and amortization Share in result of companies accounted for using the	359.2 (145.4)	372.6 (145.4)	(13.4) -
equity method	0.6	0.6	-
EBITDA	505.2	518.6	(13.4)
EBIT	359.8	373.2	(13.4)

Net financial result (*)	(64.6)	(65.2)	0.5
Income taxes	(75.1)	(78.4)	3.3
Profit (loss) of the period	220.0	229.6	(9.6)
of which minority share	(3.2)	(3.2)	-
of which Group share	223.2	232.8	(9.6)
H2 2023
Result from operating activities of which depreciation and amortization Share in result of companies accounted for using the	231.5 (153.1)	299.9 (153.0)	(68.3) (0.2)
equity method	(0.2)	0.5	(0.7)
EBITDA	384.4	453.3	(68.9)
EBIT	231.3	300.3	(69.0)
Net financial result (*)	(44.4)	(44.6)	0.2
Income taxes	(29.8)	(42.8)	13.0
Profit (loss) of the period	157.1	212.9	(55.8)
of which minority share	(4.7)	(1.0)	(3.8)
of which Group share	161.8	213.8	(52.0)
2023
Result from operating activities of which depreciation and amortization Share in result of companies accounted for using the	590.7 (298.5)	672.5 (298.4)	(81.8) (0.2)
equity method	0.4	1.1	(0.7)
EBITDA	889.6	971.9	(82.3)
EBIT	591.1	673.6	(82.5)
Net financial result (*)	(109.0)	(109.8)	0.8
Income taxes	(104.9)	(121.3)	16.3
Profit (loss) of the period	377.1	442.5	(65.4)
of which minority share	(8.0)	(4.2)	(3.8)
of which Group share	385.1	446.7	(61.6)

*Net financial result is calculated as the sum of financial income, financial expenses and foreign exchange gains and losses as reported in the consolidated income statement

Forward looking statements

This document 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.

Glossary

For a glossary of used financial and technical terms please refer to: http://www.umicore.com/en/investors/financial-data/glossary/

Link to all documents related to Umicore's 2023 FY results.

For more information

caroline.kerremans@umicore.com
benoit.mathieu@umicore.com
adrien.raicher@umicore.com
marjolein.scheers@umicore.com
caroline.jacobs@eu.umicore.com

Financial calendar

22 March 2024	Publication of the annual report 2023
25 April 2024	Annual General Meeting
29 April 2024	Ex-dividend trading date
30 April 2024	Record date for the dividend
4 May 2024	Payment date for the dividend
26 July 2024	Half year results 2024
19 August 2024	Ex-dividend trading date, interim dividend 2024
20 August 2024	Record date for the interim dividend 2024
21 August 2024	Payment date for the interim dividend 2024

Umicore profile

Umicore is the circular materials technology Group. It focuses on application areas where its expertise in materials science, chemistry and metallurgy make a real difference. Its activities are organized in four business groups: Battery Materials, Catalysis, Recycling and Specialty Materials. Each business group is divided into market-focused business units offering materials and solutions that are at the cutting edge of new technological developments and essential to everyday life.

Umicore generates the majority of its revenues and dedicates most of its R&D efforts to clean mobility materials and recycling. Umicore's overriding goal of sustainable value creation is based on an ambition to develop, produce and recycle materials in a way that fulfils its mission: materials for a better life.

Umicore's industrial and commercial operations as well as R&D activities are located across the world to best serve its global customer base with more than 11,500 employees. The Group generated revenues (excluding metal) of € 3.9 billion (turnover of € 18.3 billion) in 2023.

A conference call and audio webcast for analysts and investors will take place today at 08:30 AM CET. Access the webcast here.