UmicoreRechargeable Battery MaterialsJune, 2014

Agenda

Introduction to Umicore

Umicore Rechargeable Battery Materials

Li-Ion Battery market trends

Introduction to Umicore

• We are a global materials technology & recycling company

• Our mission is to make “materials for a better life”

• The majority of our growth comes from clean technologies:

technologies that are specifically designed to optimize the use of natural resources and to reduce environmental impact

• We are listed on NYSE / Euronext Brussels with a market capitalization of some € 4 billion

3

Umicore, global leader in …

Automotive catalysts for passenger cars

Key materials for rechargeable batteries used in portable electronics and hybrid & electric cars

Germanium substrates and other materials which are used in new photovoltaic technologies

Recycling precious metals from old mobile phones, laptops, electronic scrap and spent catalyst material

4

Umicore’s business approach

• We transform metals into hi-tech materials

• We use application know-how to create tailor-made solutions in close collaboration with our customers

• We close the loop and secure supply by recycling production scrap and end-of-life materials

• We aim to minimize our environmental impact and be the best employer and neighbour

materialsolutionsMetals

Applicationknow-how

Recycling

Materialsolutions

ChemistryMaterial science

Metallurgy

5

Key megatrends for UmicoreMore stringent emission controlResource scarcity

Renewable energy Electrification of the automobile6

Umicore in figures

2013

Turnover € 9.8 bn

Revenues € 2.4 bn

REBIT € 304 m

REBITDA € 463 m

ROCE 13.6%

EPS € 1.96 / share

Dividend € 1.00 / share

7

Umicore Group structure

8

Agenda

Introduction to Umicore

Umicore Rechargeable Battery Materials

Li-Ion Battery market trends

Umicore Rechargeable Battery MaterialsFact Sheet

2014

Market Share 1 out of 5 batteries ever made contains Umicore material

15+ xEV platforms on the market in the next years

Track Record >60.000mT cathode material produced (accumulated)

>15 years in the market

Production 5 production sites (KR, JP, CN, BE)

TS16949, ISO9001, ISO14001

Portfolio Cathode: LCO, NMC, NCA, LFP

All Power/Energy ratios covered

R&D 3 R&D sites, 2 application labs

50% products sold are less than 3 years on the market

10

Umicore Global Li-ion Battery SetupClose to the (end-)customer

Applied Technology

• Battery Lab (KR, JP)

Customer Teams

• Dedicated teams • Sales & Marketing• Applied Technology

in EU, US, KR, JP, CN, TW

Production

• Precursor and Productin KR, CN, JP, BE

Worldwide activities in rechargeable battery materials

Research & Development•• Precursor and Product

R&D (KR, JP, BE)• Group R&D (BE)

11

Umicore’s unique experience

RBM has produced enough cathode materials to:

Provide a smartphone to every person on this planet

Power more than 1Million EV´s

12

Umicore’s position in the LIB Value ChainStable supply is key for our customers

• Strong application focused cathode material producer fully integrated for

strategic raw material supply, including recycling

13

Agenda

Introduction to Umicore

Umicore Rechargeable Battery Materials

Li-Ion Battery market trends

Li-Ion Battery market trends (1)

• LIB-production quite volatile over the year Portable electronics : device launches create erratic demand pattern Automotive : strong fluctuations but gradually growing Cylindrical cell business seems under stress except for the Tesla-business Polymer >> Prismatic > Cylindrical Structural overcapacity creates unhealthy price erosion at cell makers

• Gap between high-tech segment and mainstream/low end increasing High-tech segment : thin and flex form factor, high capacity, high power Top cell performance = combination of high-tech material solutions Low end is threatened by high technology solutions (4 x 3.2Ah iso 6 x 2.2Ah)

16

Li-Ion Battery market trends (2)

• New and growing LIB-applications are numerous : Mobile dataloggers, gardening tools, DIY-tools, boost power, medical

equipment, autonomous workstations, data transmission, 12V- and 48V-car systems, grid frequency regulation, back-up power, peakshaving, e-bikes,…

Personal mobile connectivity (smart phones, phablets, tablets,…)

• Declining applications exist as well : PC shipments decline significantly and so does 18650 demand Low feature phone shipments decline

• Automotive : diversification ! From Start-Stop to full Electric Vehicle From 18650, over large CYL and POL all the way to +30Ah Prismatic From LFP, over LMO/NCA all the way to NMC

1716

Specific priorities for different market segments

• Electronics : Wh/L, safety and low swelling• Power Tools : W/kg, safety, fast charging• Automotive : Wh/L + US$/kWh OR W/kg @ -20°C + US$• ESS : TCO per cycle, over 15yr horizon

Electronics Power Tools Automotive ESS

Design cycle < 1yr < 1yr 2-4yr 1-2yr

P/E Low High Low to High High

Cost Medium-High High Medium Low-Medium

Cathode LCO-NMC NMC-LMO NMC-LMO LFP-NMC

1817

Portable electronicsMore … in less …

Physical density (g/cc)Ele

ctro

chem

ical

per

form

ance

(Wh/

g)

LCO

NMC-family

Strictly Confidential 19

LiNiO2

LiCoO2 LiMnO2

Cellcore® MXNMC (1:1:1)

Automotive Gen.2 towards lower $/kWhThrough higher performance or lower cost

Two parallel paths depending on company knowhow and strategy

Higher Ni contentPushes energy density• Increase kWh/kg

• Maintaining cost/kg

⇒ Decreases cost/kWh

Lower Co contentReduces metal cost• Decrease cost/kg

• Maintaining kWh/kg

⇒ Decreases cost/kWh

Cost/kWh

NMC (1:1:1) 100%Low Co 75% - 80%High Ni 75% - 80%

20

Understanding ESS specific requirementsC

harg

e-D

isch

arge

freq

uenc

y

~20 times per yearCapacity Credit,Energy Back-up

4-8 hours storage

4*15 minutes of cycling* 250 days per year

= 1 000 cycles per yearFrequency regulation,

Windmills15 min – 1 hour storage

~20 times per yearPower quality,

Primary reserve15 min – 1 hour storage

1 cycle per day* 250 days/year

= 250 cycles per yearLoad Leveling, PV,

Arbitrage4-8 hours storage

(Minutes) Storage duration (Hours)20

Umicore Rechargeable Battery MaterialsSummary • Umicore Rechargeable Battery Materials serves a fast growing market

with a broad product portfolio

• Different market segments call for different product solutions and market segments are in a different stage of market development

Portable Electronics will remain the biggest LIB-application in next years

Use Li-ion in Automotive application is steadily growing and is expected to occupy a significant portion of the total material market towards the end of the decade

ESS application is the newest market segment but has also the potential to grow significantly as a result of increased renewable power generation and decentralized power generation

16

Thank you !