Financial
Report 2021

Umicore Financial Report 2021

Umicore at a glance
Umicore INPUT
Financial

Cashflows
over

€ 1b

Market Cap€ 8.7b

BUSINESS MODEL
Revenues

€ 4b

0.77

(at 2021 FYR results
announcement
16/02/2022 closing)Global footprintclose toour customers

79%

46

Innovation

CAPEX€ 389mSales, marketing& other sites€ 245m

R&D sites

Environment

Employees

54%

secondarymaterials

Group employees

metals

11,050€ 22.7b
paid toSociety

18,000suppliers in87

countries

Water withdrawn

17%

megalitersof whichfrom renewableelectricity

22.5%
women

Customers

12,500in

101

countries

now-hotion kw
licapp

Chemistry
Material science
Metallurgy

10,103

metals recovered
across all recycling
activities

75

Platinum ecovadis
sustainability
ratingTop 1%

100%

green power supply

High performancefuel cells

Technologies
enabling industry
leading purity,
consistency &quality of cathodematerials

Scope 1
GHG emissions

Scope 2
GHG emissions

CO2emarket-based CO2e

New patentfamilies
registered69

material
solutions372,699 t 473,738 t
re c yc l i n g

Nationalities

Nysa site
Carbon neutral
as of start ofproduction with

28

ROCE

22.2%

15

8,308 TJ

of which,a

R&D

EnergyInput mix

€ 1.25m

Closing themetals loop...With a closed loop
business model delivering

33

Innovation at
the heart ofour sustainableproducts &services

Adjusted EBITDA

revenues fromclean mobility &recycling

We are a global materials
technology & recycling group...

Production sites

Operations

IMPACT ON SDGSOUTPUT

Net debt / LTM
adj. EBITDA

Retention rate

94%

Certified ethicalorigin of ourrechargeable
battery materials,
LBMA certifications,
RMI conformant
refiners & RJC
certification

Metal exposure
ratio

1.5%

(all biomarkers
aggregated)

Diffuse metal
emissions-35%

vs 2020 in
HobokenLost time
accidents

73

Avoided emissions
Taxes€ 202m
paid

2

35m t

CO2e from oure-mobility products& recycling services(2016 through 2020)

Umicore Financial Report 2021

Statements

3

Umicore Financial Report 2021

Financial statements
Consolidated income statement

5

F12 Income from other financial investments

35

F29 Environmental provisions

56

Consolidated statement of comprehensive income

6

F13 Income taxes

36

F30 Provisions for other liabilities and charges

57

Consolidated balance sheet

7

F14 Intangible assets other than goodwill

37

F31 Capital employed

58

Consolidated statement of changes in equity

8

F15 Goodwill

38

F32 Financial instruments by category

59

Consolidated statement of cash flow

9

F16 Property, plant and equipment

39

F33 Fair value of financial instruments (derivatives)

64

Notes of the financial statements

10

F17 Investments accounted for using the equity method

41

F34 Notes to the cash flow statement

68

F1

Basis of preparation

10

F18 Financial assets at fair value through oci and41

F35 Off-balance sheet rights and commitments

69

F2

Accounting policies

10

F36 Contingencies

70

F3

Financial risk management

20

F19 Inventories

42

F37 Related parties

70

F4

Critical accounting estimates and judgments

24

F20 Trade and other receivables

42

F38 Events after the reporting period

71

F5Group companies

26

F21 Tax assets and liabilities

44

F39 Earnings per share

71

F6

Foreign currency measurement

27

F22 Net cash and cash equivalents

45

F40 IFRS developments

72

F7

Segment information

28

F23 Currency translation differences and other reserves

46

F41 Auditors’ remuneration

72

F8

Business combinations and acquisitions of associates

31

F24 Financial debt

47

Parent company separate summarized

F25 Trade debt and other payables

48

financial statements

31

F26 Liquidity of the financial liabilities

50

Management responsibility statement

F10 Payroll and related benefits

34

F27 Provisions for employee benefits

52

F11 Finance cost – net

35

F28 Stock option plans granted by the company

56

and joint ventures
F9

Result from operating activities

loans granted

73

75

4

Umicore Financial Report 2021

Umicore Statements Backcover5

Consolidated income statement
Thousands of Euros

Notes

2020

2021

TurnoverF9

20,710,116

24,054,439

Other operating income

F980,602

176,919

20,790,718

24,231,358

Operating income
Raw materials and consumables

F9

Payroll and related benefits

F10(798,481)(853,140)

Depreciation and impairments

F9(362,496)(338,777)

Other operating expenses

F9(506,587)(517,313)

Operating expenses
Income (loss) from other financial assets(18,819,323) (21,644,346)(20,486,887) (23,353,576)
F12

RESULT FROM OPERATING ACTIVITIES

761

1,156

304,592

878,938

Financial income

F11

4,044

13,904

Financial expenses

F11(77,802)(80,716)

Foreign exchange gains and losses

F11(30,445)(23,480)

Share in result of companies accounted for using the equity method

F17(5,332)

17,347

195,057

805,993

PROFIT (LOSS) BEFORE INCOME TAX
Income taxes(59,130)(179,044)

PROFIT (LOSS) FROM CONTINUING OPERATIONS

F13

135,927

626,949

Profit (loss) of the period

135,927

626,949of which minority share

5,397

7,990

of which Group share

130,530

618,959(EUR)
Basic earnings per share from continuing operations

F39

0.54

2.57

Diluted earnings per share from continuing operations

F39

0.54

2.56

0.25

0.75

Dividend pay-out per share

On 30 April 2020 the ordinary shareholders’ meeting approved to reduce the dividend for 2019 to € 0.375
per share, which corresponded to the amount of the interim dividend for 2019 which had been alreadypaid out in the second half of 2019. Therefore, there was no dividend payout in the first half of 2020. The
Supervisory Board proposed a gross annual dividend for the financial year 2020 of € 0.75 per share at theAnnual General Meeting on 29 April 2021. Taking into account the interim dividend of € 0.25 per share paidout on 25 August 2020, a gross amount of € 0.50 per share was paid out on 5 May 2021 after shareholder
approval. Taking into account the interim dividend of € 0.25 per share paid out on 24 August 2021 andsubject to shareholder approval, a gross amount of € 0.55 per share will be paid out on 4 May 2022.

The notes F1(p. 10) through Parent company separate summarized financial statements(p. 73) are an
integral part of these consolidated financial statements.

Umicore Financial Report 2021

Umicore Statements Backcover

Consolidated statement of comprehensive income
Thousands of Euros

Notes

Profit (loss) of the period from continuing operations

2020

2021

135,927

626,949

Items in other comprehensive income that will not be reclassified to P&L
Changes due to remeasurements of post employment benefit obligations
Changes in deferred taxes directly recognized in other comprehensive income(25,198)

46,007

7,258(11,838)

Items in other comprehensive income that may be subsequently
reclassified to P&L
Changes in financial assets at FV through OCI reserves(4,193)43

Changes in cash flow hedge reserves

17,32165,732(3,456)(19,811)

Changes in deferred taxes directly recognized in other comprehensive income
Changes in currency translation differences
Other comprehensive income from continuing operations
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

F23(122,257)

86,663(130,525)

166,796

5,402

793,745of which Group share

2,952

784,177of which minority share

2,450

9,568

The deferred tax impact on the consolidated statement of comprehensive income is due to changes in the
cash flow hedge reserves for € -19.8 million and in the employee benefit reserves for € -11.8 million.
The notes F1(p. 10) through Parent company separate summarized financial statements(p. 73) are an
integral part of these consolidated financial statements.

6

Umicore Financial Report 2021

Umicore Statements Backcover

7

Consolidated balance sheet
31/12/2020

31/12/2021

Thousands of Euros

31/12/2020

31/12/2021

2,895,694

3,102,769

Equity of the Group

2,621,856

3,167,274

F14, F15

346,888339,848

Group shareholders' equity

2,557,182

3,112,882

Property, plant and equipment

F16

2,163,660

2,351,133

Share capital and premiums

1,384,273

1,384,273

Investments accounted for using the equity method

F17

139,839

155,140

Retained earnings

1,749,655

2,151,292(367,825)(196,370)

Treasury shares(208,921)(226,313)

Minority interest

64,67454,392

2,359,901

2,398,400

Thousands of Euros

Notes

Non-current assets
Intangible assets

Financial assets at fair value through Other
Comprehensive Income

F18

Loans granted

8,352

14,120

F18

3,252

2,608

Trade and other receivables

F20

11,765

20,672

Deferred tax assets

F21

Current assets

221,938

219,248

5,445,199

5,942,472

Loans granted

F18

80

169

Inventories

F19

2,718,092

2,869,071

Trade and other receivables

F20

1,677,167

1,832,033

Income tax receivables

F21

39,553

46,762

Cash and cash equivalents

F221,010,307

1,194,437

8,340,893

9,045,241

TOTAL ASSETS

Currency translation differences and other reserves

Notes

F23

Non-current liabilities
Provisions for employee benefits

F27

426,356

387,206

Financial debt

F24

1,705,154

1,724,037

Trade and other payables

F25

23,50547,361

Deferred tax liabilities

F21

22,84624,294

F29, F30

182,040

215,5023,359,136

3,479,567

Provisions
Current liabilities
Financial debt

F24

719,177

430,847

Trade and other payables

F25

2,418,929

2,807,966

F21

160,734

197,488

F29, F30

60,29643,266

8,340,893

9,045,241

Income tax payable
Provisions
TOTAL EQUITY & LIABILITIESThe notes F1(p. 10) through Parent company separate summarized financial statements(p. 73) are an
integral part of these consolidated financial statements.

Umicore Financial Report 2021

Umicore Statements Backcover8

Consolidated statement of changes in equity
Thousands of Euros
Balance at the beginning of 2020

Share capital & premiums

Reserves

Currency translation &other reserves

Treasury shares

Minority interest Total for continuing operations

1,384,273

1,678,348(284,453)(184,701)

66,997

Result of the period-

130,530

-

-

5,397

135,927

Other comprehensive income for the period--(127,578)-(2,947)(130,525)

Total comprehensive income for the period-

130,530(127,578)

-

2,450

5,402

Changes in share-based payment reserves--

10,108--

10,108

Convertible Bond - conversion rights*--

37,743--37,743

Capital increase

-

-

-

-

27

27

Dividends-(60,141)--(4,800)(64,942)

Transfers-

917(3,645)

2,727

-

-

Changes in treasury shares

-

-

-

(26,947)-(26,947)

Changes in scope

2,660,464

-

-

-

-

-

-

1,384,273

1,749,655(367,825)(208,921)

64,674

2,621,856

Result of the period-

618,959

-

-

7,990

626,949

Other comprehensive income for the period--

165,218-

1,578

166,796

Total comprehensive income for the period-

618,959

165,218-

9,568

793,745

Changes in share-based payment reserves--

14,255--

14,255

Convertible Bond - conversion rights*

-

-

-

-

-

-

Capital increase

-

-

-

-

-

-

Dividends-(180,530)--(6,008)(186,538)

Transfers

-

1,137

(5,904)

4,767

-

-

Changes in treasury shares

-

-

-

(22,159)-(22,159)

BALANCE AT THE END OF 2020

Changes in scope
BALANCE AT THE END OF 2021-

(37,930)(2,115)-(13,841)(53,885)

1,384,273

2,151,292(196,370)(226,313)

54,392

3,167,274

The legal reserve of €55.0million which is included in the retained earnings is not available for distribution. The share capital of the Group as at 31 December 2021 was composed of 246,400,000 shares with no par value.
*The conversion rights embedded in the € 500 million convertible bond issued on 23 June 2020 were valued at € 37.7 million net of transaction costs and deferred taxes. This value according to IFRS rules will not
be remeasured over time, nor at conversion nor at maturity.
The change in scope movements over the year are mainly related to the squeeze-out to acquire the remaining 8.8 % of the shares in Agosi (Allgemeine Gold- und Silberscheideanstalt AG, Germany) for € 53.9 million.
The notes F1(p. 10) through Parent company separate summarized financial statements(p. 73) are an integral part of these consolidated financial statements.

Umicore Statements Backcover

Umicore Financial Report 2021

9

Notes

2021

Consolidated statement of cash flow
Thousands of Euros

Notes

Profit (loss) from continuing operations
Adjustments for profit of equity companies
Adjustment for non-cash transactions

F34

Adjustments for items to disclose separately or under investing andfinancing cashflows

F34

Change in working capital requirement

F34

Cashflow generated from operations
Dividend received
Tax paid during the period
Government grants received

2021
626,949

Capital increase (decrease) minority

5,332(17,347)

Own shares

449,022399,936

Payment of lease liabilities

116,051

228,573(103,756)

167,154602,576

1,405,265

2,026

5,018

(78,955)(174,990)

2,673

23,287F34528,320

1,258,580

Acquisition of property, plant and equipment

F16(391,475)(379,572)

Acquisition of intangible assets

F14(44,060)(36,854)

Acquisition of new subsidiaries, net of cash acquired

F8

(156)

-

-

(53,870)

NET OPERATING CASHFLOW

Acquisition in additional shareholdings in subsidiaries
Acquisition of financial assets

F18(1,633)(5,014)

New loans extended

F18

(752)

(170)

Sub-total acquisitions(438,076)(475,480)

Disposal of property, plant and equipment

1,475

1,994

Disposal of intangible assets

6,620

623

518

1,417

Disposal of subsidiaries and associates, net of cash disposed
Sub-total disposals
NET CASHFLOW GENERATED BY (USED IN) INVESTING ACTIVITIES

F34

Thousands of Euros

2020
135,927

8,613

4,034

(429,463)(471,446)

F24Interest received
Interest paid
New loans and repayments

27-(26,947)(22,159)(19,801)(19,534)

3,392

12,098(59,689)(54,510)806,035(331,718)

Dividends paid to Umicore shareholders(60,141)(180,537)

Dividends paid to minority shareholders(4,800)(6,007)

638,076(602,367)

NET CASHFLOW GENERATED BY (USED IN) FINANCING ACTIVITIES

F24

2020

F34

Effect of exchange rate fluctuations

25,466(20,081)TOTAL NET CASHFLOW OF THE PERIOD

762,399

164,686

Net cash and cash equivalents at the beginning of the period forcontinuing operations

F22239,230

1,001,630

Net cash and cash equivalents at the end of the period forcontinuing operations

F22

1,001,630

1,166,316

1,010,307

1,194,437(8,678)(28,122)of which cash and cash equivalentsof which bank overdrafts

The notes F1(p. 10) through Parent company separate summarized financial statements(p. 73) are an
integral part of these consolidated financial statements.

Umicore Financial Report 2021

Umicore Statements Backcover10

Notes of the financial statements
The company’s consolidated financial statements and the management report prepared in accordancewith article 3:33 of the Belgian Companies and Associations Code set forth in the sections labelled About
us through Management Responsibility Statement(p. 75) for the year ended 31 December 2021 wereauthorized for issue by the Supervisory Board on 11 March 2022. They have been prepared in accordancewith the legal and regulatory requirements applicable to the consolidated financial statements of Belgiancompanies. They include those of the company, its subsidiaries and its interests in companies accounted
for using the equity method.

F1 Basis of preparation
The Group presents its annual consolidated financial statements in accordance with all International
Financial Reporting Standards (IFRS) adopted by the European Union (EU).
The consolidated financial statements are presented in thousands of euros, rounded to the nearest
thousand, and have been prepared on a historical cost basis, except for those items that are measured atfair value.
Umicore is a Société Anonyme - Naamloze vennootschap company with its registered office in Brussels,
Belgium at Rue du Marais 31 (Broekstraat 31) B - 1000 Brussels (Belgium) and has following LEI code
529900F3AIQECS8ZSV61 .
Umicore operates its business from Belgium. UmicoreNV-SA is the ultimate parent company of the
Umicore group.
Umicore group did not change his name compared to previous year.
Umicore is a global materials technology and recycling group. It focuses on application areas where
its expertise in materials science, chemistry and metallurgy makes a real difference. Its activities areorganised in three business groups: Catalysis, Energy & Surface Technologies and Recycling. Each businessgroup is divided into market-focused business units offering materials and solutions that are at the cuttingedge of new technological developments and essential to everyday life. Umicore generates the majorityof 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.

F2 Accounting policies
2.1 Principles of consolidation and segmentation
2.1.1 Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control.
The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They aredeconsolidated from the date that control ceases.
Note F5 lists all significant subsidiaries of the company at the closing date.
The Group applies the acquisition method to account for business combinations. The considerationtransferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities
incurred to the former owners of the acquiree and the equity interests issued by the Group. The
consideration transferred includes the fair value of any asset or liability resulting from a contingent
consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are measured initially at their fair values at the acquisition date. The group
recognizes any minority interest in the acquiree on an acquisition-by-acquisition basis, either at fair value
or at the minority interest’s proportionate share of the recognized amounts of acquiree’s identifiable net
assets. Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; anygains or losses arising from such re-measurement are recognized in profit or loss.
Any contingent consideration to be transferred by the Group is recognized at fair value at the acquisition
date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an
asset or liability is recognized in profit or loss. Contingent consideration that is classified as equity is not
re-measured, and its subsequent settlement is accounted for within equity.
Inter-company transactions, balances and unrealized gains on transactions between group companies
are eliminated. Unrealized losses are also eliminated. When necessary, amounts reported by subsidiaries
have been adjusted to conform with the Group’s accounting policies. The line “other operating income”
and “other financial income” of the income statements include, depending on the nature of the underlying
transactions, the currency translation differences due to intercompany transactions to be translated

Umicore Financial Report 2021

Umicore Statements Backcoverfrom the transaction currency into functional currency which may differ from euro for some entities
and regions.
IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations) does not specify the treatment
for the elimination of inter-company transactions between discontinued and continued operations. Asan accounting policy Umicore opts not to eliminate the intercompany transactions within the income
statement between the discontinued and continued operations. For the balance sheet presentation
however, IFRS 10 (Consolidated Financial Statements) overrides IFRS 5 and requires all intercompany
balances to be eliminated including between the discontinued and continued operations.

2.1.2 Changes in ownership interests in subsidiaries without change of control

Transactions with minority interests that do not result in loss of control are accounted for as equity
transactions – that is, as transactions with the owners in their capacity as owners.
The difference between fair value of any consideration paid and the relevant share acquired of thecarrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to minority
interests are also recorded in equity.

2.1.3 Disposal of subsidiaries

When the Group ceases to have control, any retained interest in the entity is remeasured to its fair value
at the date when control is lost, with the change in carrying amount recognized in profit or loss. The
fair value is the initial carrying amount for the purposes of subsequently accounting for the retainedinterest as an associate, joint venture or financial asset. In addition, any amounts previously recognizedin other comprehensive income in respect of that entity are accounted for as if the Group had directly
disposed of the related assets or liabilities. This may mean that amounts previously recognized in othercomprehensive income are reclassified to profit or loss.

2.1.4 Associates

Associates are all entities over which the Group has significant influence but not control, generallyaccompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates areaccounted for using the equity method of accounting. Under the equity method, the investment is initiallyrecognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of
the profit or loss of the investee after the date of acquisition.
The Group’s investment in associates includes goodwill identified on acquisition. If the ownership interest
in an associate is reduced but significant influence is retained, only a proportionate share of the amounts
previously recognized in other comprehensive income is reclassified to profit or loss where appropriate.
The Group’s share of post-acquisition profit or loss is recognized in the income statement, and its shareof post-acquisition movements in other comprehensive income is recognized in other comprehensive
income with a corresponding adjustment to the carrying amount of the investment. When the Group’s

11

share of losses in an associate equals or exceeds its interest in the associate, including any otherunsecured receivables, the Group does not recognize further losses, unless it has incurred legal orconstructive obligations or made payments on behalf of the associate. The Group determines at eachreporting date whether there is any objective evidence that the investment in the associate is impaired.
If this is the case, the Group calculates the amount of impairment as the difference between therecoverable amount of the associate and its carrying value and recognizes the amount adjacent to “shareof profit/(loss) of associates” in the income statement.
Profits and losses resulting from upstream and downstream transactions between the Group and its
associate are recognized in the Group’s financial statements only to the extent of unrelated investor’sinterests in the associates. Unrealized losses are eliminated unless the transaction provides evidenceof an impairment of the asset transferred. Accounting policies of associates have been changed where
necessary to ensure consistency with the policies adopted by the Group. Dilution gains and losses arisingin investments in associates are recognized in the income statement.

2.1.5 Joint arrangements

The Group applies IFRS 11 to all joint arrangements. Under IFRS 11 investments in joint arrangements areclassified as either joint operations or joint ventures depending on the contractual rights and obligations
each investor. The Group has assessed the nature of its joint arrangements and determined them to be
joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of
accounting, interests in joint ventures are initially recognized at cost and adjusted thereafter to recognize
the Group’s share of the postacquisition profits or losses and movements in other comprehensive income.
When the Group’s share of losses in a joint venture equals or exceeds its interests in the joint ventures(which includes any long-term interests that, in substance, form part of the Group’s net investment in the
joint ventures), the Group does not recognize further losses, unless it has incurred obligations or madepayments on behalf of the joint ventures.
Unrealized gains on transactions between the Group and its joint ventures are eliminated to the extent
of the Group’s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures
have been changed where necessary to ensure consistency with the policies adopted by the Group.

2.1.6 Segment reporting

Note F7 provides the Company’s segment information, in line with IFRS 8. Umicore is organized in business
units. Operating segments under IFRS 8 at Umicore are differentiated by their growth drivers in the areasof Catalysis, Energy & Surface Technologies, and Recycling.
The Catalysis segment provides automotive catalysts for gasoline and diesel light and heavyduty diesel
applications, including on-road and non-road vehicles. The business group also offers stationary catalysis

Umicore Financial Report 2021

Umicore Statements Backcoverfor industrial emissions control and produces precious metals based compounds and catalysts for use in
the pharmaceutical and fine chemicals industries.
The Energy & Surface Technologies segment is focused on products that are found in applications used in
the production and storage of clean energy and in a range of applications for surface technologies thatbring specific properties and functionalities to end products. All the activities offer a closed loop service
for the customers. The Recycling segment treats complex waste streams containing precious and otherspecialty metals. The operations can recover 20 of these metals from a wide range of input materials
ranging from industrial residues to end-of-life materials. Other activities include production of precious
metals-based materials that are essential for applications as diverse as high-tech glass production,
electrics and electronics.
Corporate covers corporate activities, shared operational functions and the Group’s Research,
Development & Innovation unit. Umicore’s minority share in Element Six Abrasives and Ieqsa is also
included in Corporate.
Operating segments are reported in a manner consistent with the internal reporting provided to thesupervisory board and the management board.
The segment results, assets and liabilities include items directly attributable to the segment as well as
those elements that can reasonably be allocated to a segment.
The pricing of inter-segment sales is based on an arm’s length transfer pricing system. In the absence of
relevant market price references, ‘cost plus’ mechanisms are used.
Associate companies are allocated to the business group with the closest fit from a market
segment perspective.

2.2 Inflation accounting

For the reported period, there is one subsidiary in the Umicore Group having a functional currency
belonging to a hyperinflationary economy in Argentina. However, in view of significance to the Group, thisis not material for IAS 29 to be applied.

2.3 Foreign currency translation

Functional currency: items included in the financial statements of each entity in the Group are measured
using the currency that best reflects the economic substance of the underlying events and circumstances
relevant to that entity. The consolidated financial statements are presented in euros which is thefunctional currency of the parent. To consolidate the Group and each of its subsidiaries, the financial
statements are translated as follows:12● Assets and liabilities at the year-end rate as published by the European Central Bank.
● Income statements at the average exchange rate for the year.
● The components of shareholders’ equity at the historical exchange rate.
Exchange differences arising from the translation of the net investment in foreign subsidiaries, joint
ventures and associated entities at the period-end exchange rate are recorded as part of the shareholders’equity under “currency translation differences”.
When a foreign operation is partially disposed of or sold, exchange differences that were recorded inequity are recognized in the income statement as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as local
currency assets and liabilities of the foreign entity and are translated at the closing rate.

2.4 Foreign currency transactions

Foreign currency transactions are recognized during the period in the functional currency of each entity
at exchange rates prevailing at the date of transaction. The date of a transaction is the date at which thetransaction first qualifies for recognition. For practical reasons a rate that approximates the actual rate at
the date of the transaction is used at some operations, for example, an average rate for the week or themonth in which the transactions occur.
Subsequently, monetary assets and liabilities denominated in foreign currencies are translated at theclosing rate at the end of the reporting period.
Gains and losses resulting from the settlement of foreign currency transactions, and from the translationof monetary assets and liabilities denominated in foreign currencies, are recognized in the income
statement as a financial result.
In order to hedge its exposure to certain foreign exchange risks, the Company has entered into certain
forward contracts (see Note F2.21, Financial instruments).

2.5 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is recorded at historical cost, less accumulated depreciation andimpairment losses. Cost includes all direct costs and appropriate allocation of indirect costs incurred tobring the asset to working condition for its intended use.
Borrowing costs that are directly attributable to investments are capitalized together with the costs of theassets in accordance with IAS 23. All borrowing costs that cannot be linked directly to an investment arerecognized as expenses in the period when incurred.

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The straight-line depreciation method is applied through the estimated useful life of the assets.
Useful life is the period of time over which an asset is expected to be used by the company.
Repair and maintenance costs are expensed in the period in which they are incurred, if they do notincrease the future economic benefits of the asset. Otherwise they are classified as separate components
of items of property, plant and equipment. Those major components of items of property, plant andequipment that are replaced at regular intervals are accounted for as separate assets as they have useful
lives different from those items of property, plant and equipment to which they relate. Umicore’s PPE,
being complex and highly customized industrial assets, typically do not have an individual resale value if
put outside the overall context of the operations. Therefore, no residual value is taken into account when
determining the depreciable value.
The typical useful life per main type of property, plant and equipment are as per table below. For
material newly acquired or constructed assets, the useful life is separately assessed at the moment of theinvestment request and can deviate from the above standards.

13

years
Land

Non-depreciable

Buildings- Industrial buildings

20- Improvements to buildings

10- Offices and laboratories

40

Plant, machinery and equipment

10- Furnaces

7- Small equipment

5

Furniture and vehicles- Vehicles- Mobile handling equipment

5
7- Computer equipment

3-5- Furniture and office equipment

5 - 102.6 Intangible assets & equity transaction expenses
2.6.1 Equity transaction expenses

Management determines the estimated useful lives and related depreciation charges for property, plantand equipment. Management uses standard estimates based on a combination of physical durability
and projected product life or industry life cycles. These useful lives could change significantly as a resultof technical innovations, market developments or competitor actions. Management will increase thedepreciation charge where useful lives are shorter than previously estimated, or it will write-off orwrite-down technically obsolete or non-strategic assets that have been abandoned or sold.

Goodwill represents the excess of the cost of an acquisition of a subsidiary, associate or jointly controlled
entity over the Group’s share in the fair value of the identifiable assets and liabilities of the acquired entity
at the date of acquisition. Goodwill is recognized at cost less any accumulated impairment losses.

Land use rights are part of the Property, Plant and Equipment and are typically amortized over thecontractual period.

Goodwill from associates and joint ventures is presented in the balance sheet on the line “Investments
accounted for under the equity method”, together with the investment itself.

Expenses for formation and capital increase are deducted from the share capital.

2.6.2 Goodwill

To assess impairment, goodwill is allocated to a cash generating unit (CGU). At each balance sheet date,these CGUs are tested for impairment, meaning an analysis is performed to determine whether the
carrying amount of goodwill allocated to the CGU is fully recoverable.
If the carrying amount is not fully recoverable, an appropriate impairment loss is recognized in the income
statement. These impairment losses are never reversed.
The excess of the Group’s interest in the fair value of the net identifiable assets acquired over the cost of
acquisition is recognized in the income statement immediately.

2.6.3 Research and development

Research costs related to the prospect of gaining new scientific or technological knowledge andunderstanding are recognized in the income statement as an incurred expense.

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Development costs are defined as costs incurred for the design of new or substantially improved products
and for the processes prior to commercial production or use. They are capitalized if, among others, thefollowing conditions are met:
● the intangible asset will give rise to future economic benefits, or in other words, the market potential
has been clearly demonstrated.
● the expenditures related to the process or product can be clearly identified and reliably measured.
In case it is difficult to clearly distinguish between research or development costs, the costs are considered
as being research. If development costs are capitalized they are amortized using a straight-line method
over the period of their expected benefit, in general five years.

2.6.4 CO2 emission rights

Within the framework of the Kyoto protocol, a third emission trading period started, covering 2013-2020
and the fourth phase started on January 1, 2021 (till 2030). Therefore, the Flemish Government granted
emission rights to the Flemish sites of certain companies, including Umicore. Each year, at the end of
February, one fifth of these emission rights is put on an official registry account. The release of emission
rights to this registry account entails the capitalization in the intangible assets, which is in line with theguidance of the Belgian Accounting Standards Commission. Gains on the recognition of emission rights
at fair value are deferred until the certificates are used. Emission rights owned are subject to impairment
testing but are not depreciated. If, at a certain closing date, it appears that the closing market price isbelow the carrying value, a write-down is booked. At each closing date, the Group estimates the actualuse of rights for the period and recognizes a provision for the rights that will have to be restituted to
the Government. The charge related to the impairment loss or the recognition of provisions are fullycompensated in the income statement by the release of deferred revenue. Historically, Umicore owns therequired rights to ensure its normal operating activities.

2.6.5 Other intangible assets

All the following types are recorded at historical cost, less accumulated amortization andimpairment losses:● Concessions, patents, licenses: are amortized over the period of their legal protection with a minimumof 5% (in general over 5 years).
● Customer portfolios: are typically amortized over a period of five years.
● ERP software is typically amortized over a period of ten years.
● Smaller software is typically amortized over a period of five years.
In case of an earn-out component, a remeasurement is foreseen, adapting the carrying amount of theasset and the amortization accordingly.

14

Umicore has currently no intangible asset with an indefinite useful live.

2.7 Lease

IFRS 16 sets out the principles for the recognition, measurement, presentation, and disclosure of leases
and requires lessees to account for all leases under a single on-balance sheet model, similar to theaccounting for finance leases under IAS 17. At the commencement date of a lease, lessees recognize alease liability (i.e. a liability to make lease payments), and a right-of-use asset (i.e. an asset representing
the right to use the underlying asset over the lease term).
The lease liabilities are recognized at the present value of the remaining lease payments (see note F24) in
non-current liabilities (including the current portion of the lease liabilities) which is considered immaterial
in view of the financial statements as a whole.
The right-of-use asset is depreciated over the term of the lease (see note F16). Interest expense isrecognized on the lease liability (see note F11). The lease liability is remeasured upon the occurrenceof certain events (e.g. a change in the lease term or a change in future lease payments resulting
from a change in index). Such remeasurements of the lease liability will generally be recognized as an
adjustment to the right-of-use asset.
The Group applies the lease recognition exemptions for short-term leases and leases for which theunderlying asset is of low value. The Group elects, by class of underlying asset, not to separate non-lease
components from lease components and instead accounts for each lease component and any associatednon-lease component as one single lease component.
The Group leases metals to and from third parties for specified periods for which the Group receives or
pays fees. Metal lease contracts are typically concluded for less than one year.
The metal leases from and to third parties are still reported as off-balance sheet commitments, as not in
the scope of IFRS 16.

2.8 Financial assets at fair value through oci, loans and non-current receivables

All movements in financial assets at fair value through OCI, loans and receivables are accounted for attrade date.
Financial assets at fair value through OCI are carried at fair value. Unrealized gains and losses from changes
in the fair value of such assets are recognized in equity as financial assets at fair value through OCI
reserves (Other Comprehensive Income). When the assets are sold or impaired, the accumulated fair value
adjustments are also included in the OCI. Financial assets are derecognized when the rights to receive
cash flows from the investments have expired or have been transferred and the Group has transferred
substantially all risks and rewards of ownership.

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Loans and receivables are carried at amortized cost less any impairment.
All write-downs are recorded on a separate account and are netted with the carrying amounts when all
chances of recovery are depleted. Own shares are deducted from equity.

2.9 Inventory

Inventories are classified as:
1. Base products (gross values)a. Permanently tied up metal inventories (not hedged)b. Commercially available metal inventories (hedged)c. Other base products inventories (not hedged)
2. Consumables (gross values)
3. Write down and impairments
4. Advances paid
5. Contracts in progress

15● On the commercially available metal inventories : These inventories are economically hedged. For thepart of the inventory where Umicore obtained IFRS 9 Fair Value hedge accounting, Umicore applies
the mark-to-market valuation principles. When IFRS 9 Fair Value hedge accounting cannot be obtained(see note F2.21.1 transactional risks – fair value hedging), LOCOM (lower of cost or net realizable value,
meaning the estimated selling price less the estimated costs of completion and the estimated cost
necessary to make the sale) is applied.
● On the other Base products, LOCOM and slow moving principles are applied. Any write-downs booked
are classified under the caption Write downs & Impairments.
Consumables (gross values) are products that are not used in a direct way in the manufacturing
processes (for example: packaging material). They are valued using the weighted-average cost method
and are submitting to LOCOM. Any write-downs booked are classified under the caption Write downs& Impairments
Write-downs & Impairments are any impairments or write downs booked on the Base products andConsumables are captured under this line item.

Inventories are carried at cost. Cost comprises direct purchase or manufacturing costs and an appropriate
allocation of overheads.

Advances paid are down-payments on transactions with suppliers for which the physical delivery has not
yet taken place and are booked at nominal value.

Base products (gross values) are mostly metal-containing products on which Umicore is exposed toprice ﬂuctuation risks. Most of these inventories follow Umicore’s metal accounting rules and are classified
in two inventory categories that reflect their specific nature and business use: the permanently tied up
metal inventories and the commercially available metal inventories. The latter inventories are subject
to an active and systematic hedging process to minimize the effects of market price ﬂuctuations on theﬁnancial performance of the Group. Conversely, the permanently tied up metal inventories are typicallynot hedged. Next to these categories, the other base product inventories consist of materials used in the
manufacturing processes to obtain the marketable basis products. These inventories are also typically nothedged. More details on the hedging mechanisms can be found in note F3.

Contracts in progress are valued using the percentage-of-completion method.

Individualized or weighted average valuation is applied on the initial at cost valuation per category of
inventory complemented with the following fair value principles:● On the permanently tied up metal inventories : In view of their permanent nature, Umicore opted
to apply the measurement and recognition rules of Property, Plant and Equipment (IAS 16) andImpairment of Assets (IAS 36). The valuation is based on the “historical cost less any accumulated
depreciation and accumulated impairment” principle. As the inventories are considered to have an
unlimited useful life, no depreciations are applied. Instead they are subject to Umicore’s annual
impairment testing of the CGUs carrying these inventories. Any impairments booked are classified
under the caption Write downs & Impairments.

2.10 Trade and other receivables

Trade and other receivables are measured at amortized cost, i.e. at the net present value of the receivableamount. Unless the impact of discounting is material, the nominal value is taken. Receivables are written
down for irrecoverable amounts. All write-downs are recorded on a separate account and are netted withthe carrying amounts when all chances of recovery are depleted.
Trade receivables of which substantially all the risks and rewards have been transferred are derecognizedfrom the balance sheet. The positive fair value of derivative financial instruments is included under
this heading.
Trade and other receivables are subject to an impairment methodology, referred to as the Expected Credit
Loss (ECL) model, measuring the expected credit losses based on shared credit risk characteristics. Umicore
has established an allowance matrix based on different customer and sector ratings, ageing balances,macro-economic and regional factors and historical loss patterns.
The Group may undertake certain linked contracts to sell or buy metal and commit to repurchase or sell themetal in the future. An asset representing the metal which the Group has committed to sell or a liability
representing the obligation to repurchase the metal are recognized in trade and other receivables orUmicore Financial Report 2021

Umicore Statements Backcovertrade and other payables, respectively. Accordingly, principal cash flows in respect of sale and repurchaseagreements are shown as cash flows from operating activities in the cash flow statement rather than cash
flows from financing activities as long the financing is short term in time and the underlying transactions
are not rolled over. Consistently interest paid and received are shown as cash flows from operating
activities and presented as other income in the income statement in line with lease and factoring fees.
No revenues are recognized in respect of the sale leg or costs are recognized in respect of the purchaseleg if it regards the same metals and quantities engaged with the same party.

2.11 Cash and cash equivalents

Cash includes cash-in-hand and cash with banks. Cash equivalents are short-term, highly liquid
investments that are readily convertible into known amounts of cash, have maturity dates of threemonths or less and are subject to an insignificant risk of change in value.
These items are carried in the balance sheet at nominal value or amortized cost. Bank overdrafts areincluded in the current liabilities on the balance sheet.

16

B. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction
from the proceeds of the issue, net of tax.
C. Dividends of the parent company payable on ordinary shares are only recognized as a liability following
approval by the shareholders.

2.14 Minority interests

Minority interests include a proportion of the fair value of identifiable assets and liabilities recognized
upon acquisition of a subsidiary that is attributable to third parties, together with the appropriate
proportion of subsequent profits and losses.
In the income statement, the minority share in the Group’s profit or loss is presented separately from theGroup’s consolidated result.

2.15 Provisions

Provisions are recognized in the balance sheet when:

2.12 Impairment of non-financial assets

Property, plant and equipment and other non-current assets, including intangible assets and financial
assets not held for trading, are reviewed for impairment whenever events or changes in circumstancesindicate that the carrying amount may not be recoverable. If any such indication exists, the recoverable
amount of the asset is estimated.
The recoverable amount is the higher of an asset’s net selling price and value in use. To estimate therecoverable amount of individual assets the company often determines the recoverable amount of the
cash-generating unit (CGU) to which the asset belongs.
Whenever the carrying amount of an asset exceeds its recoverable value, an impairment loss is recognized
as an expense immediately.
A reversal of impairment losses is recognized when there is an indication that the impairment losses
recognized for the asset or for the CGU no longer exist or have decreased. An impairment loss is reversed
only to the extent that the asset’s carrying amount does not exceed the carrying amount that would havebeen determined, net of depreciation or amortization, if no impairment loss had been recognized.

2.13 Share capital and retained earnings

A. Repurchase of share capital: When the company purchases some of its own shares, the consideration
paid, including any attributable transaction costs net of income taxes, is deducted from the total
shareholders’ equity as treasury shares. No gain or loss shall be recognized in profit or loss on thepurchase, sale, issue or cancellation of own shares. When such shares are subsequently sold or reissued,
any consideration received is included in shareholders’ equity.

● There is a present obligation (legal or constructive) as a result of a past event.
● It is probable that an outflow of resources will be required to settle the obligation.
● A reliable estimate can be made on the amount of the obligation.
A constructive obligation is an obligation that derives from company actions where, by an establishedpattern of past practice or published policies, the company has indicated that it will accept certain
responsibilities and, as a result, the company has created a valid expectation that it will discharge
those responsibilities.
The amount recognized as a provision is the best estimate of the expenditure required to settle thepresent obligation at the end of the reporting period and taking into account the probability of the possible
outcome of the event. Where the effect of the time value of money is material, the amount of a provision
is the present value of the expenditure expected to be required to settle the obligation. The result of theyearly discounting of the provision, if any, is accounted for as a financial result.
The main types of provision are the following:

2.15.1 Provisions for employee benefits (See note F2.16 - Employee benefits)
2.15.2 Environmental obligations

Environmental provisions are based on legal and constructive obligations from past events, in accordancewith the company’s environmental approach and applicable legal requirements.
The full amount of the estimated obligation is recognized at the moment the event occurs.

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When the obligation is production/activity related, the provision is recognized gradually depending on
normal usage/production level.

2.15.3 Other Provisions

These include provisions for litigation, onerous contracts, warranties, exposure to equity investments andrestructuring. A provision for restructuring is recognized when the company has approved a detailed andformal restructuring plan and the restructuring has either commenced or has been announced publicly
before the end of the reporting period. Any restructuring provision only includes the direct expenditurearising from the restructuring which is necessarily entailed and is not associated with the ongoing
activities of the Company.

2.16 Employee benefits

2.16.1 Short-term employee benefits

These include wages, salaries and social security contributions, paid annual leave and sick leave, bonuses
and non-monetary benefits, and are taken as an expense in the relevant period.

17

In Belgium, in line with the Belgian legislation applicable to 2nd pillar pension plans (so-called “Law
Vandenbroucke”), all Belgian Deﬁned Contribution plans, for which the legal minimum guaranteed returnis applicable have to be considered under IFRS as Deﬁned Beneﬁt plans. Liabilities and costs of these plans
are therefore calculated following the Projected Unit Credit Method.
In Germany two defined contribution pension plans exist which are externally financed via the“Pensionskasse Degussa” (PKD) or the support fund “Unterstützungskasse Degussa” (RUK).The PKD
and RUK plans secure only the inflation and guaranteed interest rate adjustments of the benefits. In recent
years, due to the low interest rate environment, there is a risk of shortfalls in the self-funding at the
DKP and RUK to honor these adjustments. In case of such shortfalls the PKD and RUK would call upon
Umicore to contribute the extra funding required. For this reason, the inflation and guaranteed interest
rate adjustments for the PKD and RUK plans are recognized as defined benefit obligation plans under IFRS.
Management applied a best estimate simplified method to calculate the shortfall risk and recognized thisas an additional obligation.
2.16.2.2 Defined contribution plans

All company managers are eligible for bonuses that are based on indicators including personal
performance and key financial targets. The amount of the bonus is recognized as an expense, based onan estimation made at the end of the reporting period.

The company pays contributions to publicly or privately administered insurance plans.
The payments are recognized as expenses as they fall due and as such are included in personnel costs.

2.16.2 Post-employment benefits (pensions, medical care)

The company has various pension and medical care schemes in accordance with the conditions andpractices of the countries it operates in. The schemes are generally funded through payments to insurancecompanies or trustee-administered funds.
2.16.2.1 Defined benefit plans
The company has accounted for all legal and constructive obligations both under the formal terms ofdefined benefit plans and under the company’s informal practices.
The amount presented in the balance sheet is based on actuarial calculations (using the projected unit
credit method) and represents the present value of the defined benefit obligations netted with the fairvalue of the plan assets.
The past service costs are immediately recognized in the income statement since IAS 19 revised.
All remeasurements as a result of changes in the actuarial assumptions of post-employment defined
benefit plans are recognized through other comprehensive income (OCI) in the period in which they occur
and are disclosed in the statement of comprehensive income as post-employment benefit reserves.

2.16.3 Other long-term employee benefits (jubilee premiums)

These benefits are accrued for their expected costs over the period of employment using an accounting
methodology similar to that for defined benefit pension plans. These obligations are in general valued
annually by independent qualified actuaries. All remeasurements as a result of changes in the actuarial
assumptions are immediately recognized in the income statement.

2.16.4 Termination benefits (pre-retirement plans, other termination obligations)

These benefits arise as a result of the company’s decision to terminate an employee’s employment before
the normal retirement date or of an employee’s decision to accept voluntary redundancy in exchange forthose benefits. When they are reasonably predictable in accordance with the conditions and practices of
the countries the company operates in, future obligations are also recognized.
These benefits are accrued for their expected costs over the period of employment, using an accounting
methodology similar to that for defined benefit pension plans. In general, these obligations are valued
annually by independent qualified actuaries. All remeasurements as a result of changes in the actuarial
assumptions are immediately recognized in the income statement.

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2.16.5 Equity and equity-related compensation benefits (share-based payments ifrs 2)

Different stock option and share programs allow company employees and company senior management
to acquire or obtain shares of the company.
The option or share exercise price equals the market price of the (underlying) shares at the date of the
grant. When the options are exercised, shares are delivered to the beneficiaries from existing own shares.
For the share programs, shares are delivered to the beneficiaries from existing own shares. In both cases,
the equity is increased by the amount of the proceeds received corresponding to the exercise price.
The options and shares are typically vested at the moment of the grant and their fair value is recognized as
an employee benefit expense with a corresponding increase in equity as share based payment reserves.
For the options, the expense to be recognized is calculated by an actuary, using a valuation model whichtakes into account all features of the stock options, the volatility of the underlying stock and an assumed
exercise pattern.
As long as the options granted have not been exercised, their value is reported in the Statement of
Changes in Equity as ‘share based payments reserve’. The value of the options exercised during the period
is transferred to ‘retained earnings’.

18

not remeasured, nor at conversion nor at maturity. Note, finally, that the convertible bond is a zero
coupon instrument.

2.18 Trade and other payables

Trade payables are measured at amortized cost, i.e. at the net present value of the payable amount.
Unless the impact of discounting is material, the nominal value is taken.
The Group may undertake certain linked contracts to sell or buy metal and commit to repurchase or sell themetal in the future. An asset representing the metal which the Group has committed to sell or a liability
representing the obligation to repurchase the metal are recognized in trade and other receivables ortrade and other payables, respectively. Accordingly, principal cash flows in respect of sale and repurchaseagreements are shown as cash flows from operating activities in the cash flow statement rather than cash
flows from financing activities as long the financing is short term in time and the underlying transactions
are not rolled over. Consistently interest paid and received are shown as cash flows from operating
activities and presented as other income in the income statement in line with lease and factoring fees.
No revenues are recognized in respect of the sale leg or costs are recognized in respect of the purchaseleg if it regards the same metals and quantities engaged with the same party.
The negative fair value of derivative financial instruments is included under this heading.

2.16.6 Presentation

The impact of employee benefits on results is booked under operating results in the income statement,
except for the interest and discount rate impacts which are classified under financial results.

2.17 Financial liabilities

All movements in financial liabilities are accounted for at trade date.

2.19 Income taxes

Taxes on proﬁt or loss of the year include current and deferred tax. Such taxes are calculated in accordancewith the tax regulations in effect in each country the company operates in.
Current tax is the expected tax payable on the taxable income of the year, using tax rates enacted at theend of the reporting period, and any adjustment to tax payable (or receivable) in respect of previous years.

Borrowings are initially recognized as proceeds received, net of transaction costs.
Subsequently they are carried at amortized cost using the effective interest rate method.
Amortized cost is calculated by taking into account any issue costs, and any discount or premium on
issue. Any differences between cost and redemption value are recognized in the income statement
upon redemption.
As from 2019, the financial debt also contains the lease liability as per IFRS 16 (see note F2.7).
The convertible bond is considered as a compound instrument. It contains a liability and a equity
component. This instrument is convertible into shares at the option of the holder. Each component
is, therefore, accounted for separately. The liability element is determined by fair valuing the cash
flows excluding any equity component. The residual is assigned to equity. The equity component is

The tax payable is determined based on tax laws and regulations that apply in each of the numerous
jurisdictions in which the Group operates. The income tax positions taken are considered by the Group to
be supportable and are intended to withstand challenge from tax authorities. However, it is accepted thatsome of the position can be uncertain and include interpretation of complex tax laws.
Tax provisions are recognized where the precise impact of the tax law and regulations on taxes payable
with respect to profit arising in those jurisdiction is unclear and could trigger a tax adjustment represented
by a future flow of funds to a tax authority or a consequent adjustment to a deferred tax asset. Uncertain
tax positions are assessed periodically, implying a detail assessment following the interpretation of IFRIC
23, considering uncertainties individually or collectively, based on which approach provided the best
predictions of the resolution of the uncertainties with the tax authorities; assuming that the tax authority
will examine the position (if entitled to do so) and will have full knowledge of all the relevant information;and recognizing an Uncertain Tax Position or UTP (or group of UTPs) using either the most likely amountUmicore Financial Report 2021

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or the expected value, depending on which is thought to give a better prediction of the resolution of each(group of) UTP(s), to reflect the likelihood of an adjustment being realised on examination. The estimationand judgements in relation to uncertain tax positions are reassessed if the facts and circumstances on
which those estimates and judgements were based have changed or as a result of new information that
affects the initial assessments. In the measurement of the Uncertain tax positions, the Group considers
the statute of limitation applicable in each jurisdiction, addionally interest and penalties are included in
the assessment.

For sales within Recycling, the vast majority of revenue is recognized at a point in time when the controlof the refined products or metal is back in the hands of the customers (refinery) or in the hands of thecustomers (sale of metal, including boni), embarked by the delivery.

Deferred taxes are calculated using the liability method on temporary differences arising between thetax base of assets and liabilities and their carrying amounts in the ﬁnancial statements. These taxes
are measured using the rate prevailing at the end of the reporting period or future applicable tax rates
formally announced by the government in the country the Company operates in.

Some of the contracts do contain commercial discounts and rebates, however frequency is relatively
low, and magnitude is not significant. If applicable, these are recognized in the same period the saleis established.

Deferred tax assets are only recognized to the extent that it is probable that future taxable proﬁt will beavailable against which the temporary differences can be utilized.
Deferred tax assets and liabilities are offset and presented net only if they relate to income taxes leviedby the same taxation authority on the same taxable entity.

2.20 Revenue recognition

2.20.1 Revenue recognition from contracts with customers

Despite the complexity of several processes within each business unit, the performance obligations arerather straightforward, those being:

For sales within Energy and Surface Technologies the revenue is recognized at a point in time when thecontrol is transferred to the customer, this moment being driven by the delivery of the products according
to the incoterms.

There are no additional warranty agreements sold to clients on top of legal requirements, therefore these
are not considered as a separate performance obligation.
Consequently, the transaction price identified within the agreement is allocated in full to theperformance obligation.
There are no significant contract balances where either the Group has performed the performanceobligation for which no billing occurred yet, or alternatively has received advance payments for which theperformance obligation has not been satisfied.
The revenue from contracts with customers is further detailed in note F7 and F9.

● Catalysis: the delivery of the goods in accordance with contract specifications. These specifications
have been predefined and validated through samples. This latter is not considered as a significant
stream for further analysis under IFRS 15.
● Recycling: the return of the refined metals back to the client in accordance with the contract either intheir pure metal content or as part of a (semi)finished product and the sale of metal (including boni)
towards the customers.
● Energy and Surface Technologies: the delivery of the products according to specification agreed in thesales order received.

The assessment in view of impairment losses is captured under the expected credit loss model as detailed
in note F20.

Umicore has carefully considered the satisfaction of the performance obligation and concludes that forsales within Catalysis the revenue is recognized at a point of time when the control transfers to thecustomer. Despite the products being customized, the considerations for over time have not been met
given that the customer does not control the production process nor has the Group the entitlement to be
paid prior to delivery of the goods. The control is therefore transferred based upon the usual delivery terms(incoterms) and the customer accepting the goods upon delivery.

2.21 Financial instruments

2.20.2 Government grants

A government grant is accounted for in the balance sheet initially as deferred income when there isreasonable assurance that it will be received and that the company will comply with the conditions
attached to it. Grants are recognized in the income statement over the period necessary to match themwith the costs they are intended to compensate.

The company uses derivative financial and commodity instruments primarily to reduce the exposure
to adverse fluctuations in foreign exchange rates, commodity prices, interest rates and other market
risks. The company uses mainly spot and forward contracts to cover the metal and currency risk, andswaps to hedge the interest rate risk. The operations carried out on the futures markets are not of a
speculative nature.

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2.21.1 Transactional risks – fair value hedging

Derivative ﬁnancial and commodity instruments are used for the protection of the fair value of underlying
hedged items (assets, liabilities and ﬁrm commitments) and are recognized initially at fair value at tradedate. The hedged items (physical commitments and commercially available inventory, primarily) are,under Umicore’s economical hedging policies, initially valued at fair value by applying mark-to-market.

Where possible Umicore documents hedge accounting according to the criteria set out in IFRS 9. The
bottom layer or the net position approach for the fair value hedge on groups of closed portfolios offoreign exchange risk and commodity risk exposures are applied. Under the bottom layer approach, a layer
representing the nominal amount of an exposure that has historically been present on a constant andcontinuous basis is defined. This layer is further split into smaller unit of accounts, sublayers, which aredesignated as hedged items. The sublayers are then hedged by hedging instruments that are designatedas hedging multiples of such sublayers.
Under the net position approach, hedging is applied based on a group of items with offsetting risk
positions, the net position being the hedged item hedged by a hedging instrument.
In both approaches, it regards closed hedged portfolios in which items cannot be added, removed or
replaced without treating each change as the transition to a new portfolio. In both approaches, theexposures cover a group of both on balance and off balance foreign exchange and commodity positions,that is, either trade payables, inventories and purchase commitments or trade receivables and salescommitments exposed to the variability of foreign currencies or commodity prices.
In the absence of reaching IFRS 9 hedge accounting as the bottom layer or net position criteria are not met
or when no market-based derivatives are available, Umicore recognizes the hedged items at cost. Since
under Umicore economical hedging policy, all transactional hedging positions are marked to market for
operational risk monitoring purposes, this consists in reversing any positive fair value on these hedged
items to keep them at cost (in case of inventories) or off-balance (in case of commitments). Hedges in thiscategory are labeled as economical hedges and are not considered speculative instruments.
When there is a consistent practice of trading of commodities through the use of commodity contracts
by a dedicated subsidiary or a cash generating unit (CGU) of the Group and by which the entity takes
delivery of the underlying commodity to sell it within a short period after delivery for the purpose ofgenerating a proﬁt from short-term ﬂuctuations in price or trading margins, the inventory is valued atfair value through the income statement and the related physical and / or commodity commitments areclassiﬁed as derivatives and measured at fair value through the income statement.

2.21.2 Structural risks – cash flow hedging

Derivative financial and commodity instruments used for the protection of future cash flows aredesignated as hedges under cash-flow hedge accounting. The effective portion of changes in the fair

20

value of hedging instruments which qualify as cash flow hedges are recognized in the shareholders
equity as hedging reserves until the underlying forecasted or committed transactions occur (i.e. affectthe income statement). At that time the recognized gains and losses on the hedging instruments aretransferred from equity to the income statement.
When the underlying hedged transactions are no longer probable or the hedges become ineffective, thecorresponding hedging instrument will immediately be terminated and all profits or losses including thosewhich were deferred in equity, are immediately recognized in the income statement.
In the absence of obtaining cash-flow hedge accounting at inception as defined under IFRS 9, then the fairvalue of the related hedging instruments is recognized in the income statement instead of the equity andthis prior to the occurrence of the underlying forecasted or committed transactions.

2.21.3 Embedded derivatives

Executory contracts (the “host contract”) may sometimes contain embedded derivatives.
Embedded derivatives cause some or all of the cash flows that would otherwise be expected from the hostcontract, to be modified according to a specified interest rate, financial instrument price, commodity price,foreign exchange rate, or another variable. If it is concluded that such a derivative is not closely related tothe host contract, it is separated from the host contract and accounted for under the rules of IFRS 9 (fairvalue through profit or loss). The host contract is accounted for using the rules applicable to executory
contracts, which effectively means that such a contract is not recognized in the balance sheet or profit andloss before delivery on the contract takes place.

2.22 Adjustments

The adjustments to the result relate to restructuring measures, impairment of assets linked torestructuring measures and other income or expenses arising from events or transactions that areclearly distinct from the ordinary activities of the company such as discontinuation of activities andenvironmental provisions that relate to historical pollution or linked to non-active sites.

F3 Financial risk management
Each of the Group’s activities is exposed to a variety of risks that are financial or non-financial in nature
but have the potential to impact the ﬁnancial performance of the Group. Financial risks include changes inmetal prices, in foreign currency exchange rates, in certain market-deﬁned commercial conditions, and ininterest rates as well as credit and liquidity risks. The Group’s overall risk management program seeks tomitigate risks and potential adverse effects on the ﬁnancial performance of the Group, including throughthe use of hedging and insurance instruments.

Umicore Financial Report 2021

Umicore Statements Backcover

3.1 Currency risk

Umicore’s currency risk can be split into three distinct categories: structural, transactional andtranslational risks.

3.1.1 Structural risk

A portion of Umicore’s revenues are structurally denominated in US dollar (USD), while many of the related
operations are located outside the USD zone (particularly in Europe and Asia).
Any change in the USD exchange rate against the EUR or other currencies which are not pegged to the USD
will have an impact on the results.
A large portion of such structural currency exposure derives from US dollar denominated metal prices
linked to the recycling and refining operations.

21

3.1.2 Transactional risk

The company is also subject to transactional risks in respect of currencies, i.e. the risk of currency
exchange rates fluctuating between the time the price is fixed with a customer or supplier and the time
the transaction is settled. The Group’s policy is to hedge the transactional risk to the maximum extent
possible, primarily through forward contracts.
In relation to the transactional risk, the Group assesses the hedge effectiveness through a critical terms
match between the hedged item (Balance sheet items and commitments) and the hedging instrument
including amount and maturity. The Group hedges transactional risks to the maximum extent up to 100 %.
Any ineffectiveness can arise from difference in maturity between hedged item and hedging instrument
or changes in exposure amounts, but this is not expected to be material.

3.1.3 Translational risk

An increasing portion of the structural risk exposure stems from non-metal related revenues denominatedin USD such as product premiums and refining charges. This increase is particularly related to theaccelerating growth in battery materials activities in Asia.

Umicore is an international company and has foreign operations which do not have the EUR as theirfunctional currency. When the results and the balance sheets of these operations are consolidated into
Umicore’s Group accounts the translated amount is exposed to variations in the value of such local
currencies against the EUR, predominantly the KRW, CNY, USD, BRL and ZAR. While Umicore does not
systematically hedge its translational currency exposures, it may enter into ad hoc translational hedges.

Next to the sensitivity USD vs EUR, there is also a structural and increasing sensitivity to certain othercurrency pairs such as the USD and EUR vs the Korean won (KRW), the Chinese yuan (CNY), the Canadiandollar (CAD), the Polish Zloty (PLN) and the Brazilian real (BRL).

3.2 Metal price risk

Umicore’s metal price risk can be split into three distinct categories: structural, transactional andinventory risks.

Structural currency hedging
Umicore’s hedging policy allows for hedging forward its structural currency exposure, either in conjunction
with the hedging of structural metal price exposure or in isolation, typically when a currency exchange
rate or a metal price denominated in EUR is above its historical average and at a level where attractive
margins can be secured.
In relation to the structural risk, the Group assesses the hedge effectiveness through a critical terms match
between the hedged item (future probable cash flows) and the hedging instrument including amount andmaturity. The Group applies a prudent approach in the application of structural hedging, never up to 100 %,avoiding thereby ineffectiveness arising from difference in maturity between hedged item and hedging
instrument or changes in exposure amounts.
At the end of 2021, Umicore had structural currency hedging in place relating to its non-metal related
currency sensitivity including the following pairs of currencies: EUR/USD, USD/KRW, USD/CNY, EUR/CNY,
EUR/PLN and USD/CAD.

In relation to the structural and transactional risk, for the purpose of assessing our hedge effectiveness weapply a critical terms match between the hedged item and the hedging instrument including in terms ofquantity and maturity. Hedge ratio is 100% whereby our sources of ineffectiveness could be a differencein maturity between hedged item and financial instrument or a change in exposure.

3.2.1 Structural risk

Umicore is exposed to structural metal related price risks. Those risks relate mainly to the impact thatmetal prices have on surplus metals recovered from materials supplied for treatment or any otherrevenue component that fluctuates with the metal price. Umicore’s policy allows hedging of such metal
price exposure, typically if forward metal prices expressed in the functional currency of the concernedbusinesses are above their historical average and at a level where attractive margins can be secured. The
extent to which metal price risk can be hedged depends on the availability of hedging instruments andsufficient associated market liquidity.
The Recycling segment recycles platinum, palladium, rhodium, gold and silver and a wide range of otherbase and specialty metals. In this segment the short-term sensitivity of revenues and operating proﬁts
to metals prices is particularly material. However, given the variability of the raw-material feed over

Umicore Financial Report 2021

Umicore Statements Backcovertime and the variable duration of the supply contracts negotiated, it is not suitable to provide a ﬁxed
sensitivity to any particular metal. In general terms, higher metals prices tend to be earnings enhancing
for the Recycling business (and vice versa). Umicore also has a metal price sensitivity in its other businesssegments (Catalysis, Energy & Surface Technologies) linked primarily to the revenue components thatare metal price related and depending on the metals used in these segments. Also, in these cases ahigher metal price tends to carry short term beneﬁts for the proﬁtability of each business (and vice versa).
However, other commercial conditions which are largely independent of the metal price, such as productpremiums, are also signiﬁcant and independent drivers of revenues and proﬁtability. Finally, sustained
high metal prices could in some cases increase other risks such as the risk of substitution or the risk of
supply chain disruptions.
Structural metal price hedging
For some metals Umicore hedges part of its forward metal exposure. This hedging is based on
documentation demonstrating a high probability of future metal price based cash ﬂows originating fromcommercial contracts. Umicore hedged part of its forward metal exposure. Over the course of 2021,
Umicore entered into additional forward contracts to cover a substantial part of its expected structural
price exposure to certain precious metals for 2022, 2023 and 2024. For 2022, based on the respective
currently expected exposures, the following lock-ins have been secured: close to two thirds for palladium,
more than half for gold, somewhat less than half for silver and close to one third for platinum and rhodium.
For 2023, the expected lock-in ratios are: close to a third for gold, silver and palladium and a minor portion
for platinum and rhodium. For 2024, only a minor portion was locked-in for the expected gold, silver andpalladium exposures. Finally, Umicore also has hedges in place for a portion of its expected lead andcopper exposure for 2022 and 2023.
In relation to the structural risk, the Group assesses the hedge effectiveness through a critical terms match
between the hedged item (future probable cash flows) and the hedging instrument amongst othersamount and maturity. The Group applies a prudent approach in the application of structural hedging, never
up to 100 %, avoiding thereby ineffectiveness arising from difference in maturity between hedged itemand hedging instrument or changes in exposure amounts.

22

Accordingly, there is a transactional exposure to any fluctuations in price between the moment raw
materials are purchased (i.e., when the metal is “priced in”) and the moment the products are sold (i.e.
when the metal is “priced out”).
The Group’s policy is to hedge the transactional risk to the maximum extent possible, primarily throughforward contracts.
In relation to the transactional risk, the Group assesses the hedge effectiveness through a critical terms
match between the hedged item (Balance sheet items and commitments) and the hedging instrument
amongst others amount and maturity. The Group hedges transactional risks to the maximum extent up to
100 %. Any ineffectiveness of such hedges can arise from difference in maturity between hedged itemand hedging instrument or changes in exposure amounts, but this is not expected to be material.
The accelerating growth in battery materials in recent years substantially increased the exposure to
specific related metals such as cobalt or nickel. Increasing volumes, the vulnerability to the associatedprice volatility and in the case of certain metals such as cobalt the absence of a liquid paper forward
market result in increased metal risks. For cobalt, Umicore’s transactional hedging policy aims to match
to a maximum extent the pricing in and pricing out of the contracted metal. Such physical back-to-backhedging allows management of transactional risks related to cobalt in a volatile market.
The Group’s economical transactional metal hedging policy prescribes that mark-to-market valuation
principles are initially applied on all elements of the transactional hedging position, hedging instruments
as well as hedged items. Where possible this happens under IFRS 9 hedge accounting criteria. When IFRS
9 hedge accounting cannot be applied or obtained, Umicore reverses positive mark-to-markets (see note
F2.21.1 – Transactional risks – fair value hedging).

3.2.3 Metal inventory risk

The Group faces metal price risks on its permanently tied up metal inventories. This risk is related to themarket metal price moving below the carrying value of these inventories.
Umicore tends not to hedge against this risk.

3.2.2 Transactional risk

The Group faces transactional price risks on metals. The majority of its metal-based transactions use third
party metal market references, such as the London Metal Exchange. If the underlying metal price were
to be constant, the price Umicore pays for the metal contained in the raw materials purchased would be
passed through to the customer as part of the price charged for the product. However, because of the lapseof time between the conversion of purchased raw materials into products and the sale of products, thevolatility in the reference metal price creates differences between the price paid for the contained metal
and the price received.

3.3 Interest rate risk

Interest rate risks arise from changes in prevailing market interest rates, which can lead to changes
in the fair value of fixed-rate debt instruments and in changes in interest payments for variable-rate
debt instruments. This risk is managed by regularly assessing the debt profile of the Group and byentering into interest rate swaps. At the end of December 2021, the Group’s gross ﬁnancial debt stood at€ 2,155 million, of which 1,621 million carrying a ﬁxed interest rate. The outstanding interest rate swaps
totaled € 40 million and will expire in 2023.

Umicore Financial Report 2021

Umicore Statements Backcover

3.4 Credit risk

Credit risk and concentration of credit risk

Credit risk is the risk of non-payment by any counterparty in relation to sales of goods or metallease operations. In order to manage its credit exposure, Umicore has determined a credit policy withcredit limit requests, approval procedures, continuous monitoring of the credit exposure and dunning
procedure in case of delays. The credit risk resulting from sales is, to a certain extent, covered by credit
insurance, letters of credit or similar secure payment means. Umicore entered into several credit insurance
agreements with different insurers. One global credit insurance contract has been put in place on aworld-wide basis. This contract protects the insured activities against insolvency, political and commercial
risks with an individual deductible per invoice of 5% and foresees an indemnification cap set at regionalor country levels. Umicore has determined that in a certain number of cases where the cost of credit
insurance is disproportionate in relation to the risk to be insured, no such global credit insurance coverage
will be sought. For those businesses, characterized by a significant level of customer concentration or
by a specific and close relationship with the customers, specific insurance contracts may be set up for acertain period. It should be noted that some sizeable transactions, such as the sales of precious metals by
Recycling, have a limited credit risk as payment before delivery is a widely accepted practice. Umicore may
further limit selected credit risks by entering into without recourse receivables discounting arrangementsor particularly in China by without recourse bank draft discounting. Regarding its risk exposure to financial
institutions such as banks and brokers, Umicore is also establishing internal credit lines. Specific limits areset, per financial instrument, covering the various risks to which the Group is exposed when transactingwith such counterparties. In accordance with IFRS 9, impairments for expected credit losses on receivables
are measured and recognized, applying a simplified approach.

3.5 Liquidity risk

Liquidity risk relates to the ability to service and refinance debt (including notes issued) and to fundoperations. The Group manages liquidity risk by maintaining adequate sources of funding, by ensuring
a very wide diversification of such funding sources (in terms of instruments, lending banks and otherinstitutions and in terms of geography), by matching as close as possible the maturity profiles of financial
assets and liabilities and by staggering the maturities of financing sources. Sources of funding include
a.o. operating cash flows, committed and uncommitted bank facilities including Chinese bank draft lines,
metal lease lines, commercial paper issuance and long term private debt placements.
Please refer to note F20 and F24 for further details.

3.6 Tax risk

The tax charge included in the financial statements is the Group’s best estimate of its tax liability but,until such time as audits by tax authorities are concluded, there is a degree of uncertainty regarding thefinal tax liability for the period. The Group’s policy is to submit tax returns within the statutory time limits
and engage tax authorities to ensure that the Group’s tax affairs are as current as possible and that any

23

differences in the interpretation of tax legislation and regulation are resolved as quickly as possible. Given
the scale and the international nature of the Group’s business, VAT, sales tax and intra- Group transfer
pricing are an inherent tax risk as it is for other international businesses. Changes in tax laws or in theirapplication with respect to matters such as transfer pricing, VAT, foreign dividends, R&D tax credits andtax deductions, could increase the Group’s effective tax rate and adversely affect its net results. Basedon these tax risks described, management performed a detailed assessment for uncertain tax positions
which resulted in provisions recorded for these uncertainties in line with IFRIC 23.

3.7 Capital risk management

The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern,
to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital
structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may for example adjust the amountof dividends paid to shareholders, return capital to shareholders, buy back its own shares or issue
new shares.
The Group monitors its capital structure primarily on the basis of the gearing ratio and the net financial
debt over adjusted EBITDA ratio. The gearing ratio is calculated as net financial debt divided by the sumof net financial debt and total Group equity. Net financial debt is calculated as non-current financial debt
plus current financial debt less cash and cash equivalents.
The figures for the presented periods are detailed under the note F24 on Financial Debt.
In an ordinary course of business operating environment, the group aims for a capital structure equivalent
to investment-grade credit rating status. The group could consider temporarily exceeding the equivalentlevel of indebtedness in the case of an extraordinary event, such as for example a major acquisition.

3.8 Strategic and operational risks

Umicore faces certain strategic and operational risks that are not necessarily ﬁnancial in nature but whichhave the potential to impact the ﬁnancial performance of the Group. These include a.o. technology risks,
supply risks, the risk of product substitution by customers, security of supply related risks (such as forselected critical metals), operational risks related to critical production installations, information system
availability and cyber security risks, risks from legal disputes and proceedings, risks related to metal
trading activities, asset impairment risks due to a change in the asset’s underlying business context &outlook, etc. In some cases a direct link exists between financial and operational risks. For example, apotential continuity of supply risk for certain critical raw materials or metals due to sudden or extreme
physical supply tightness could substantially enhance financial risks and in particular metal price-relatedrisks. In the past, certain metals such as for example rhodium or cobalt showed high price volatility

Umicore Financial Report 2021

Umicore Statements Backcover

related to supply tightness considerations. Please refer to the chapter about Managing Risk Effectively fora description of some of these risks and an outline of Umicore’s general approach to risk management.
We refer to our note on events after the reporting date (F38) for additional insight over the crisis in Ukraine.

3.9 COVID-19 related risks

The liquidity risks that arose in 2020 related to the Covid-19 pandemic gradually declined during 2021.
Consequently, and without hampering the wide diversity of accessible funding of Umicore, the Covid-19
specific short term fundings have not been extended beyond their original expiry dates in 2021. We refer
to note F24 for further details. Credit risks were closely monitored and the Group did not face material
credit losses.

F4 Critical accounting estimates and judgments
Estimates and judgments used in developing and applying the consolidated entity’s financial statements
are continually evaluated and are based on historical experience and other factors, including the
expectations of future events that may have a financial impact on the entity and that are believed to bereasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal
the related actual results.
Assumptions and estimates are applied when:● Assessing the need for and measurement of impairment losses.
● Accounting for pension obligations.
● Recognizing and measuring provisions for tax, environmental, warranty and litigation risks, productreturns, onerous contracts and restructuring.
● Determining inventory write-downs.
● Assessing the extent to which deferred tax assets will be realized.
● Useful lives of Property, Plant and Equipment and Intangible assets excluding goodwill.
The critical estimates and judgments that have a significant risk of causing a material adjustment to thecarrying amounts of assets and liabilities within the next financial year are listed below.

4.1 Impairment testing

The Group performs an impairment test on the carrying value of its cash generating units whenevercertain external or internal triggering events suggest a potential impairment risk for such unit. The
Group performs annual impairment tests on the goodwill carried by its cash generating units. An
impairment loss is recognized when the carrying value exceeds the recoverable amount in a structuralway. The recoverable amount is the higher of the fair value less costs to sell and its value in use inaccordance with the accounting policy. This value in use is calculated by discounting related future

24

free cash flows (DCF model) to calculate their present value. These calculations require the use of andare sensitive to estimates and assumptions such as discount rates, exchange rates, commodity prices,
future capital requirements and future operating performance. Internal estimates of future businessperformance are based on an analysis of a combination of factors including: market growth projections,market share estimates, competitive landscape, pricing and cost evolution. Such analysis combines bothinternally-generated estimates and data from external sources.
As at 31 December 2021, the carrying amount of the goodwill for the consolidated entity was€ 158.6 million (€ 156.0 million in 2020). We refer to note F15 Goodwill for more details on theannual goodwill impairment testing.

4.2 Rehabilitation obligations

Provision is made for the anticipated costs of future rehabilitation of industrial sites and surrounding
areas to the extent that a legal or constructive obligation exists in accordance with accounting policy 2.15.
These provisions include future cost estimates associated with reclamation, plant closures, waste site
closures, monitoring, demolition, decontamination, water purification and permanent storage of historicalresidues. These future cost estimates are discounted to their present value. The calculation of theseprovision estimates requires assumptions such as application of environmental legislation, plant closure
dates, available technologies and engineering cost estimates and specifically related to the Hoboken
Green Zone, the purchase cost of houses. A change in any of the assumptions used may have a material
impact on the carrying value of rehabilitation provisions.As at 31 December 2021, the carrying amount of
rehabilitation provisions was € 109.8 million (€ 108.2 million in 2020). We refer to note F29 Environmental
provisions for more details.

4.3 Defined benefit obligations

An asset or liability in respect of defined benefit plan is recognized on the balance sheet in accordancewith accounting policy 2.16. The present value of a defined benefit obligation is dependent upon a numberof factors that are determined on an actuarial basis.
The consolidated entity determines the appropriate discount rate to be used at the end of each year.
The consolidated entity’s employee benefit obligations are discussed in more detail in Note F27. At
31 December 2021, a liability with respect to employee beneﬁt obligations of € 387.2 million wasrecognized (€ 426.4 million in 2020).

4.4 Recovery of deferred tax assets

Deferred tax assets are recognized for deductible temporary differences, unused tax losses and fair value
reserves entries only if it is probable that future taxable profits (based on Group operational plans) areavailable to use those temporary differences and losses. The actual tax results in future periods may differ
from the estimate made at the time the deferred taxes are recognized.

Umicore Statements Backcover

Other assumptions and estimates are disclosed in the respective notes relevant to the item where theassumptions or estimates were used for measurement.

4.5 Provisions for other liabilities and charges

The fast growth of Umicore’s battery materials sales for transport applications in particular is increasing
the Group’s exposure to the automotive industry end market. This industry has a practice of applying
warranty and recall settlements related to potential product quality events (irrespective of whether any
legal obligation exists). In view thereof, Umicore continued in 2021 its dedicated provisioning model forbattery materials as introduced in 2018.
Additional significant provisions for other liabilities and charges are related to onerous contracts. An
onerous contract provision is recognised when the unavoidable cost of meeting the obligations under thecontract exceed the economic benefits expected to be received under it.
As at 31 December 2021, the carrying amount of the provisions for other liabilities and charges amount to€ 89.4 million (€ 80.1 million in 2020).

4.6 Provisions for uncertainty over income tax treatments

As mentioned under the note F.2.19, Umicore makes a detail assessment of all tax uncertainties within theGroup as per IFRIC 23. In the measurement of the uncertain tax positions, the Group has considered thestatute of limitation taking into account the tax law and regulations that are applied in the correspondent
country, resulting in a range of three to eight years. The resolution of the tax positions taken by the Group
can take considerable period of time to conclude and, in some cases, it is difficult to predict the outcome.
The estimates made reflects where the Group: is involved in routine tax audits; has identified potential tax
exposures related to transfer pricing ; or is involved in discussions with tax authorities. The estimation of
the tax liability and income tax expense includes the corresponding penalties and late payment interests.
Most of the uncertain tax positions are measured using the expected value, consisting to the sum of theprobability - weighted outcome of a range of potential outcomes, nevertheless the most likely amount
has also been used in a limited number of uncertain tax positions. The large majority of the provision for
uncertainty over tax treatments is related to various individual uncertainties whether the tax authority
will accept a certain applied transfer pricing methodology or to various individual uncertainties related tothe deductibility of an amount for tax purposes. Group provision for uncertainty over tax treatments at
December 2021 amounting to € 101.1 million (2020 : € 114.9 million) results in a decrease of those liabilitiesby € 13.8 million. This provision was booked under Income Tax Payable in the consolidated balance sheet.
The movement of the year corresponds from remeasurement and roll-forward of existing uncertain tax
positions; reversal of uncertain tax position based on mitigation actions taken and on the expiration of thestatute of limitation; and the recognition of newly uncertain tax positions. The decrease during the year
2021 mainly corresponds to conclusion of tax audits in Europe mainly related to Transfer Pricing.

Umicore Financial Report 2021

25

Umicore Financial Report 2021

Umicore Statements BackcoverF5 Group companies% interest in

Below is a list of the main operating companies included in the consolidated financial statements

26% interest in

2020

2021

FranceUmicore France S.A.S.

100.00100.00-Umicore IR Glass S.A.S.

100.00100.00% interest in% interest in-

Umicore Autocat France S.A.S.

100.00100.00

2020

2021

-

Umicore Specialty Powders France S.A.S.

100.00100.00-Umicore Marketing Services France S.A.S.

100.00100.00-Todini France S.A.S.

100.00100.00Germany

Umicore AG & Co. KG (*)

100.00100.00-Allgemeine Gold- und Silberscheideanstalt AG (**)

91.21

0.00

-

Agosi AG (**)

100.00100.00-Umicore Galvanotechnik GmbH

91.21

100.00-Todini Deutschland GmbH

100.00100.00-Umicore Shokubai Germany GmbH

60.00

60.00

Italy

Todini and CO. S.P.A.

100.00100.00India

Umicore Autocat India Pvt LTD

100.00100.00-Umicore India Private Limited

100.00100.00-Todini Metals and Chemicals India Private Limited

70.00

70.00

Japan

Umicore Japan KK

100.00100.00-Umicore Shokubai Japan Co Ltd

60.00

60.00

South Korea

Umicore Korea Ltd.

100.00100.00-Umicore Marketing Services Korea Co., Ltd.

100.00100.00-Umicore Catalysis Korea Co.,Ltd. (previously: Ordeg Co, Ltd,)

100.00100.00Liechtenstein

Umicore Thin Film Products AG

100.00100.00

Luxemburg

Umicore International

100.00100.00-Umicore Autocat Luxembourg

100.00100.00-Umicore Shokubai

60.00

60.00

MexicoTodini Atlántica S.A. de C.V.

70.00

70.00

Netherlands

Schöne Edelmetaal BV

91.21

100.00Philippines

Umicore Specialty Chemicals Subic Inc.

78.20

78.20

PolandUmicore Autocat Poland sp. z o.o.

100.00100.00For continuing operations
Argentina

Umicore Argentina S.A.

100.00100.00Australia

Umicore Marketing Services Australia Pty Ltd.

100.00100.00Austria

Oegussa GmbH

91.29

100.00Belgium

Todini (BE 0834.075.185)

100.00100.00-Umicore Financial Services (BE 0428.179.081)

100.00100.00-Umicore Marketing Services Belgium (BE 0402.964.625)

100.00100.00-Umicore Specialty Materials Brugge (BE 0405.150.984)

100.00100.00-Umicore Holding Belgium (BE 0731.571.921)

100.00100.00BrazilCoimpa Industrial Ltda

100.00100.00-Umicore Brasil Ltda

100.00100.00-Clarex S.A.

100.00100.00-Umicore Shokubai Brasil Industrial Ltda

60.00

60.00

-

Umicore Catalisadores Ltda.

100.00100.00

CanadaUmicore Canada Inc.

100.00100.00-Umicore Autocat Canada Corp.

100.00100.00-Umicore Precious Metals Canada Inc.

100.00100.00China

Umicore Marketing Services (Shanghai) Co., Ltd.

100.00100.00-Umicore Marketing Services (Hong Kong) Ltd.

100.00100.00-Umicore Autocat (China) Co. Ltd.

100.00100.00-Umicore Changxin Surface Technology ( Jiangmen) Co., Ltd.

80.00

80.00

-

Jiangmen Umicore Changxin New Materials Co., Ltd.

90.00

90.00

-

Umicore Shokubai (China) Co Ltd

60.00

60.00

-

Umicore Platinum Engineered Materials (Suzhou) Co., Ltd.

100.00100.00-Umicore Catalyst (China) Co., Ltd.

100.00100.00DenmarkUmicore Denmark ApS

100.00100.00Finland

Umicore Finland OY

100.00100.00Umicore Financial Report 2021

Umicore Statements Backcover% interest in% interest in

2020

2021

-

Todini Europe sp. z o.o.

70.00

70.00

-

Umicore Poland Sp. z o.o.

100.00100.00PortugalUmicore Marketing Services Lusitana Metais Lda

100.00100.00South Africa

Umicore Marketing Services Africa (Pty) Ltd.

100.00100.00-Umicore Catalyst South Africa (Pty) Ltd.

65.00

65.00

Spain

Todini Quimica Ibérica, S.L.

100.00100.00SwedenUmicore Autocat Sweden AB

100.00100.00

Switzerland

Allgemeine Suisse SA

91.21

100.00

TaiwanUmicore Thin Film Products Taiwan Co Ltd

100.00100.00ThailandUmicore Precious Metals Thailand Ltd.

91.21

100.00-Umicore Autocat (Thailand) Co., Ltd.

100.00100.00-Umicore Shokubai (Thailand) Co., Ltd.

60.00

60.00

United Kingdom

Umicore Coating Services Ltd.

100.00100.00-Umicore Marketing Services UK Ltd

100.00100.00USA

Umicore USA Inc.

100.00100.00-Umicore Autocat USA Inc.

100.00100.00-Umicore Precious Metals NJ LLC

100.00100.00-Umicore Precious Metal Chemistry USA LLC

100.00100.00-Umicore Precious Metals USA Inc.

100.00100.00-Umicore Optical Materials USA Inc.

100.00100.00-Umicore Shokubai USA Inc

60.00

60.00

-

Palm Commodities International

100.00100.00-Umicore Electrical Materials USA Inc.

100.00100.00-Umicore Catalyst USA, LLC

100.00100.00(*) Umicore AG & Co. KG, with its registered office in Hanau, Germany, is exempt from its obligation toprepare, audit and publish annual and consolidated financial statements and a management and groupmanagement report in accordance with sections 264b and 291 of the German Commercial Code (HGB).
(**) In 2021, Allgemeine Gold- und Silberscheideanstalt AG was merged with its shareholder Umicore
International AG after the acquisition of the remaining 8.8% of minority shares. Umicore International AG
was subsequently renamed into Agosi AG.

27

F6 Foreign currency measurement
For the main currencies applicable within the Group’s consolidated entities and investments, theprevailing rates used for translation into the Group’s presentation currency (€), are as set out below.
All subsidiaries, associates and joint-ventures have as functional currency the currency of the country inwhich they operate, except for Element Six Abrasives (United Kingdom) where the functional currency is
the US dollar.
CLOSING RATESAVERAGE RATES

2020

2021

2020

2021

American Dollar

USD

1.227

1.133

1.142

1.183

UK Pound Sterling

GBP

0.899

0.840

0.890

0.860

Canadian Dollar

CAD

1.563

1.439

1.530

1.483

Swiss Franc

CHF

1.080

1.033

1.071

1.081

Japanese Yen

JPY126.490130.380

121.846129.877

Brazilian Real

BRL

6.377

6.320

5.889

6.381

South African Rand

ZAR

18.02218.06318.76517.477

Chinese Yuan

CNY

8.023

7.195

7.875

7.628

Thai Baht

THB

36.72737.65335.70837.837

Korean Won (100)KRW

13.36013.46413.456

13.541

Polish Zloty

PLN

4.560

4.597

4.443

4.565

Umicore Financial Report 2021

Umicore Statements Backcover28

F7 Segment information

BUSINESS GROUP INFORMATION 2020
Catalysis

Energy & Surface Technologies

Recycling

Corporate & UnallocatedEliminations

Total Continued

Total segment turnoverThousands of Euros

Notes

5,916,870

2,811,050

13,903,640

25,676(1,947,120)

20,710,116

External turnover

5,783,840

2,750,410

12,150,190

25,676-

20,710,116

133,030

60,6401,753,450-(1,947,120)-

Total segment revenues (excluding metals)

1,364,210

1,045,040

836,000-(6,530)3,238,720

External revenues

1,362,640

1,044,940

831,140--

3,238,720

1,570

100

4,860

-

(6,530)-96,338(41,118)

310,900(61,528)-

304,592

Inter-segment turnover

Inter-segment revenues
Operating result

F9

Adjusted

153,688

70,422361,815(57,894)-

528,030

Adjustments(57,350)(111,539)(50,915)(3,634)-(223,438)(5,332)Equity method companies

-

4,874

-

(10,206)-

Adjusted

-

4,874

-

3,457

-

8,331

Adjustments

-

-

-

(13,663)-(13,663)299,260

EBIT

F996,338(36,244)

310,900(71,734)-

Adjusted

153,688

75,295361,815(54,437)-

536,361

Adjustments(57,350)(111,539)(50,915)(17,297)-(237,101)

80,496

110,457

62,94914,040-267,941

80,496

110,457

62,94914,040-267,941

176,834

74,213373,849(57,694)-567,201

234,184

185,752

424,764(40,397)-804,302

Consolidated total assets

3,447,098

3,376,191

1,643,894

1,568,336(1,694,627)

8,340,892

Segment assets

3,447,098

3,337,762

1,643,894

1,466,927(1,694,627)

8,201,054-

38,429-101,410-

139,839

1,814,687

1,260,177

1,215,316

3,123,485(1,694,627)

5,719,038

Depreciation and amortisation

F9

F9

Adjusted
EBITDA

F9

Adjusted

Investments in associates
Consolidated total liabilities
Capital Employed at 31/12 of previous year

F31

1,536,950

2,323,770

405,422

175,849-

4,441,991

Capital Employed at 30/06

F311,560,188

2,189,523

578,205

124,696-

4,452,611

Capital Employed at 31/12

F311,727,443

2,133,138

446,861

149,138-

4,456,580

Average Capital Employed in first half year

F31

1,548,569

2,256,646

491,813150,273-

4,447,301

Average Capital Employed in second half year

F31

1,643,815

2,161,330

512,533

136,917-

4,454,596

Average Capital Employed in the year

F31

1,596,192

2,208,988

502,173

143,595-

4,450,948

ROCE

F31

9.63%

3.41%

72.05%-37.91%

0.00%

12.05%

Capital expenditure

F34

63,798

251,688

71,577

16,105-403,169

Total R&D expenditureF9

138,742

58,26910,186

15,766-

222,964

R&D recognized in operating expenses

F9

125,275

43,636

10,186

11,499-190,596

R&D capitalized as intangible assets

F34

13,468

14,633

-

4,267

-

32,368

Umicore Financial Report 2021

Umicore Statements Backcover

29

BUSINESS GROUP INFORMATION 2021
Thousands of Euros

Notes

Catalysis

Energy & Surface Technologies

Recycling

Corporate & UnallocatedEliminations

Total Continued

Total segment turnover

8,154,850

3,533,830

15,609,350

34,849(3,278,440)

24,054,439

External turnover

7,989,680

3,478,360

12,551,550

34,849-24,054,439

165,170

55,4703,057,800-(3,278,440)-

Total segment revenues (excluding metals)

1,687,430

1,173,660

1,108,140-(5,920)3,963,310

External revenues

1,685,690

1,173,420

1,104,200--

3,963,310

1,740

240

3,940

-

(5,920)-307,811

132,841

528,640(90,355)-

878,938

Adjusted

326,365

131,522572,927(79,981)-950,833

Adjustments(18,554)1,319(44,287)(10,374)-(71,896)

-

7,659

-

9,688

-

17,347

Adjusted

-

7,659

-

12,884-

20,543Adjustments

-

-

-

(3,197)-(3,197)

307,811140,500

528,640(80,668)-

896,284

Adjusted

326,365

139,181572,927(67,097)-

971,377

Adjustments(18,554)1,319(44,287)(13,571)-(75,092)F975,180122,61366,921

14,811-

279,526

75,229122,61366,921

14,811-

279,576F9382,991

263,114595,562(65,856)-

1,175,810

Inter-segment turnover

Inter-segment revenues
Operating result

Equity method companies

EBIT

Depreciation and amortisation

F9

F9

F9

Adjusted
EBITDA
Adjusted

401,595

261,795

639,848(52,286)-

1,250,952

Consolidated total assets

3,356,473

4,364,500

1,426,498

1,825,075(1,927,305)

9,045,241

Segment assets

3,356,473

4,316,864

1,426,498

1,717,571(1,927,305)

8,890,101-

47,636-

107,504-

155,140

1,858,320

2,075,177

973,6142,898,161(1,927,305)

5,877,967

Investments in associates
Consolidated total liabilities
Capital Employed at 31/12 of previous year

F31

1,727,443

2,133,138

446,861

149,138-

4,456,580

Capital Employed at 30/06

F31

1,846,061

2,191,046

236,82977,507-

4,351,443

Capital Employed at 31/12F311,551,494

2,275,465

460,723

89,213-

4,376,895

Average Capital Employed in first half year

F31

1,786,752

2,162,092

341,845

113,323-

4,404,011

Average Capital Employed in second half year

F31

1,698,778

2,233,255

348,776

83,360-4,364,169

Average Capital Employed in the year

F31

1,742,765

2,197,674

345,310

98,341-

4,384,090

ROCE

F31

18.73%

6.33%

165.92%-68.23%0.00%

22.16%

Capital expenditure

F34

70,052

218,674

83,097

16,774-

388,596

Total R&D expenditure

F9141,592

63,518

13,16426,939-245,213

R&D recognized in operating expenses

F9

132,726

49,903

13,164

21,590-217,383

R&D capitalized as intangible assets

F34

8,867

13,614

-

5,349

-

27,830Umicore Financial Report 2021

Umicore Statements BackcoverSegment information is presented in respect of the Group’s business segments as defined below.

GEOGRAPHICAL INFORMATION 2020
Thousands of Euros

Notes

Europeof which
Belgium Asia-PacificNorth
AmericaSouth
America

AfricaTotal

Total segment turnover

11,115,296

156,181

5,016,465

3,881,278

561,411

135,667

20,710,116

Total non current assets

1,389,895

564,209

1,109,045

112,075

45,5904,726

2,661,333

274,403

100,914104,880

8,829

14,750306

403,169

Employee compensation& benefits

573,311317,820

124,557

72,255

20,1398,220

798,481

Income taxes

44,445596

1,776(6,601)

16,447

3,064

59,131

Capital expenditure

F34

Notes

Total segment turnoverEuropeof which
Belgium Asia-PacificNorth
AmericaSouth
America

AfricaTotal

3,761,205 1,010,605

183,991

24,054,439

12,676,355

213,0036,422,284

1,487,101

592,688

1,200,470

122,993

51,2294,283

2,866,076

253,053

102,104

108,851

16,984

9,213

496

388,596

Employee compensation& benefits

613,163

329,680

138,417

71,916

21,4978,147

853,140

Income taxes

88,60342,06640,374

17,44028,5574,070

179,044

Total non current assets
Capital expenditure

F34

The segment results, assets and liabilities include items directly attributable to the segment as well as
those elements that can reasonably be allocated to a segment.
The pricing of inter-segment sales is based on an arm’s length transfer pricing system. In the absenceof relevant market price references, ‘cost plus’ mechanisms are used. Segment turnover and revenue(without metals) is taking into account intragroup operations. Those are mainly related to recycling
services and sales of refined metal from the recycling segment to the other group segments and areimportant to assess the performance of the segments concerned.
Since these transactions cannot be considered as external operations, they are eliminated at the Grouplevel, to present a net position.

GEOGRAPHICAL INFORMATION 2021
Thousands of Euros

30

The Group’s business segments have no single external customer that amounts to 10 per cent or more of
the Group’s revenue.
Umicore determined segments as the accurate level of detail to split the product sales since theunderlying business, competences and technologies, application and product characteristics and customer
portfolio within each individual segment are similar. Moreover, obtaining information at a moredisaggregated level would result in excessive costs and efforts compared to the added value for an
external reader of the consolidated financial statements.

BUSINESS GROUPSThe Group is organized into the following reporting segments:

CATALYSISThe segment in 2021 includes the Automotive Catalysts, Precious Metals Chemistry and Fuel Cell &Stationary Catalysts business units. Catalysis provides automotive catalysts for gasoline and diesel lightand heavy-duty diesel applications, including on-road and non-on road vehicles. The business group alsooffers stationary catalysis for industrial emissions control and produces precious metals-based compounds
and catalysts for use in fuel cell applications and in the pharmaceutical and fine chemicals industries.

ENERGY & SURFACE TECHNOLOGIESThe segment includes the Cobalt & Specialty Materials, Electro-Optic Materials, Metal Deposition Solutions
and Rechargeable Battery Materials business units. Energy & Surface Technologies’ products are found inapplications used in the production and storage of clean energy and in a range of applications for surface
technologies that bring specific properties and functionalities to end products. All the activities offer aclosed loop service for the customers. This segment includes the associates Ganzhou Yi Hao Umicore
Industries and Jiangmen Chancsun Umicore Industry.

RECYCLING
The segment consists of the business units Precious Metals Refining, Jewelry & Industrial Metals andPrecious Metals Management. Recycling treats complex waste streams containing precious and otherspecialty metals. The recycling operations can recover 20 of these metals from a wide range of input
materials ranging from industrial residues to end-of-life materials.

31

Umicore Financial Report 2021

Umicore Statements BackcoverF8 Business combinations and acquisitions of associates and joint
ventures
There were no business combination during the year 2021.

F9 Result from operating activities
2020

2021

Sales

20,565,648

23,901,842

Services

144,468

152,597

Turnover20,710,116

24,054,439

Re-invoicing of costs to third parties

42,65461,307

Operating grants

19,86526,031

Royalties and license fees

6,168

11,264Emission rights income

5,207

8,945

Insurance recovery

21,58018,406

Corporate covers corporate activities, shared operational functions and the Group’s Research,
Development & Innovation unit. Umicore’s shareholdings in Element Six Abrasives and Ieqsa are also
included in Corporate.

Various interests and penalties for late payments

1,167

880

Gains on disposals of assets

2,647

1,057

(25,567)(1,361)In the geographical segment information, the ﬁgures presented as non-current assets exclude theamounts for long term investments, non-current loans granted, deferred tax assets and assets for
employee beneﬁts as required by IFRS 8. Performance of the segments is reviewed by the chief
operating decision maker based on the adjusted EBIT/ operating result. As illustrated in the table above,the difference between the adjusted operating result and the operating result as presented in theConsolidated income statement consists of the adjustments for which deﬁnitions are given in the glossary.

Tax credit

Other activities include production of precious metals-based materials that are essential for applications
as diverse as high-tech glass production, electrics and electronics.

CORPORATE

Associate companies are allocated to the business group with the closest fit from a market
segment perspective.

Thousands of Euros

Translation difference on intercos Elimination
Tax incentive
Other
Other operating income

4,247

5,294

-

39,779

2,633

5,318

80,602

176,919

OPERATING INCOME OF CONTINUING OPERATIONS

20,790,718

24,231,358

Raw materials and consumables used

(18,819,323)(21,644,346)

Payroll and related benefits(798,481)(853,140)

Depreciation of fixed assets(267,941)(279,526)

Impairment loss on fixed assets(87,543)(48,504)

Inventory and bad debt provisions(7,013)(10,747)

Depreciation and impairment results(362,497)(338,777)

Services and outsourced refining and production costs(370,526)(422,798)

Royalties, licence fees, consulting and commissions(41,606)(57,820)

Taxes other than income taxes(19,332)(22,960)

Provisions (increase/use and reversals)(74,128)(13,477)

Capital losses on disposal of assets
Other operating expenses
OPERATING EXPENSES OF CONTINUING OPERATIONS

(996)

(258)

(506,588)(517,313)(20,486,888)(23,353,576)

Turnover refers to turnover from customers as per IFRS 15. The further disaggregation is detailed in note
F7. As described in the accounting policy 2.20, the revenue from contracts with customers are recognizedUmicore Financial Report 2021

Umicore Statements Backcoverat a point in time. The increase in turnover in 2021 is mainly related to the increase of metal prices anda volume effect.
Services mainly include the revenues from tolling contracts.

32

The line provisions contains the movements in the environmental provisions and in the provisions forother liabilities and charges which are detailed in the notes F29 and F30.

R&D EXPENDITURE

Tax credit in 2021 mainly concerns the tax credit received in Brazil resulting from a landmark ruling by theBrazilian Supreme Court in May of this year covering multiple years.
The increase in raw materials and consumables used is mainly related to the increase of metal prices
and a volume effect. Raw materials and consumables used include primarily the value of the purchased
metals. Utilities (water, gas and electricity) represent for € 144.2 million in 2021 (€ 99.7 million in 2020)
for continuing operations.
The impairment losses of fixed assets have decreased compared to 2020. In 2021, those impairments aremainly related to the decision to stop a development program in Precious Metals Chemistry linked to thesemiconductor industry and to impairment of Intellectual Properties linked to the closure of Automotive
Catalysts' heavy-duty diesel operations in Frederikssund, Denmark.

Thousands of Euros

Notes

R&D recognized in Other operating expenses
R&D capitalized as intangible assets

F14

TOTAL R&D EXPENDITURE FORCONTINUING OPERATIONS

2020

2021

190,596

217,383

32,36827,830222,964

245,213

Total R&D expenditure for continuing operations was € 245.2 million in the fully consolidated companies
in 2021 (€ 223.0 million in 2020). The part of the R&D expenditures that is directly recognized in operating
expenses amounts to € 217.4 million in 2021 (€ 190.6 million in 2020).

ADJUSTMENTS INCLUDED IN THE RESULT
2020
Thousands of Euros

Notes

2021

Total

Adjusted

Adjustments

Total

Adjusted

20,710,116

20,710,116-

24,054,439

24,054,439-

80,602

79,494

1,108

176,919

137,133

39,786

Operating income

20,790,718

20,789,611

1,108

24,231,358

24,191,572

39,786

Raw materials and consumables used

(18,819,323)(18,781,872)(37,451)(21,644,346)(21,644,346)-

Payroll and related benefits(798,481)(798,131)(350)(853,140)(852,147)(993)

Depreciation and impairment results(362,496)(274,435)(88,062)(338,777)(298,187)(40,590)(267,941)(267,941)-(279,526)(279,576)

50(506,587)(407,485)(99,102)(517,313)(446,256)(71,057)(20,486,887)(20,261,923)(224,964)(23,353,576)(23,240,935)(112,641)

761

342

419

1,156

196

959

304,592

528,030(223,438)

878,938

950,833(71,896)

Turnover
Other operating incomeof which depreciation and amortisation
Other operating expenses
Operating expenses
Income from other financial investments
Result from operating activities
Net contribution from equity method companies
EBIT
EBITDA

Adjustments(5,332)8,331(13,663)

17,347

20,543(3,197)299,260

536,361(237,101)

896,284

971,377(75,092)(75,142)

567,201

804,302(237,101)

1,175,810

1,250,952

Finance cost

F11(104,202)(104,202)-(90,292)(99,586)

9,294

Income taxes

F13(59,131)(102,729)

43,598(179,044)(196,309)

17,266(48,533)

Net result

135,927

329,430(193,503)

626,949

675,482of which minority shares

5,397

7,023

(1,626)

7,990

7,990

-

of which group shares

130,530

322,407(191,877)

618,959

667,492(48,533)

Umicore Financial Report 2021

Umicore Statements Backcover

33

ADJUSTMENTS PER SEGMENT AND NATURE INCLUDED IN THE RESULT
2020

Thousands of Euros

Total

Catalysis

Energy &SurfaceTechnologies

2021

Recycling

Corporate &Unallocated

Total

Catalysis

Energy &SurfaceTechnologies

Recycling

Corporate &Unallocated

Other operating income

1,108

-

1,108

-

-

39,78630,312

1,877

7,597

-

Operating income

1,108

-

1,108

-

-

39,78630,312

1,877

7,597

-

(37,451)-(37,451)

-

-

-

-

-

-

-

(350)

-

(350)

-

-

(993)

(993)

-

-

-

Depreciation and impairment results(88,062)(36,565)(51,161)

27

(362)

(40,590)(40,406)

-

(185)

-

Other operating expenses(99,102)(20,785)(23,781)(50,942)(3,594)(71,057)(7,467)(1,522)(51,699)(10,370)

Operating expenses(224,964)(57,350)(112,743)(50,915)(3,957)(112,641)(48,866)(1,522)(51,883)(10,370)

419

-

96

-

322

959

-

964

-

(4)

(223,438)(57,350)(111,539)(50,915)(3,634)(71,896)(18,554)1,319(44,287)(10,374)

Raw materials and consumables used
Payroll and related benefits

Income from other financial investments
Result from operating activities
Net contribution from equity method companies(13,663)---(13,663)(3,197)---(3,197)

EBIT(237,101)(57,350)(111,539)(50,915)(17,297)(75,092)(18,554)1,319(44,287)(13,571)

Related to restructuring(128,190)(22,702)(99,960)-(5,528)(33,879)(31,281)41

110(2,749)Related to environment(55,788)--(50,915)(4,873)(58,251)--(48,836)(9,415)

Related to asset impairments(45,303)(28,628)(8,219)-(8,456)(17,857)(17,585)

-

-

(272)

Other

(7,820)(6,020)(3,360)-1,560

34,89530,312

1,278

4,439

(1,134)

Adjustments had a negative impact of € 75 million on EBIT of which € 39 million was already accounted
for in the first half. Environmental-related provisions took up € 58 million of this total with additional
provisions for the creation of a green zone neighboring the Hoboken plant accounting for the bulk. This
reflects the success of the voluntary offer to purchase neighboring houses. The creation of the green
zone is a key building block of the site’s plan to further reduce the impact on its neighbors. Taking into
account the use of the provision over the period, the total provision for the creation of the green zone as
at 31 December 2021 amounted to € 44 million.
EBIT adjustments also include € 34 million of restructuring charges of which € 23 million have beenaccounted for in the second half and are mainly related to a decision to stop a development program in
Precious Metals Chemistry linked to the semiconductor industry.
Impairment charges took up € 18 million of the total EBIT adjustments and were close to entirely
accounted for in the first half and were mostly linked to the closure of Automotive Catalysts’ heavy-duty
diesel operations in Frederikssund, Denmark as well as the impairment of certain related IP.
A positive EBIT adjustment of € 40 million was recognized related to a tax credit in Brazil resulting froma landmark ruling by the Brazilian Supreme Court in May of this year covering multiple years.

Including positive adjustments to financial and tax items of € 9 million and € 17 million respectively,
the total adjustments to the Group's net result over the period corresponded to a negative impact of€ 49 million.

Umicore Financial Report 2021

Umicore Statements Backcover

F10 Payroll and related benefits

SHARE-BASED PAYMENTS
Thousands of Euros

Thousands of Euros

2020

2021

Wages, salaries and direct social advantages(589,707)(640,870)

Other charges for personnel(50,594)(28,834)

Temporary staff(7,607)(10,189)

Share-based payments(10,108)(14,255)

Employee salaries(658,016)(694,148)

Employer's social security(97,698)(108,765)

Defined benefit contributions(21,438)(20,581)Contribution to defined contribution plan

(10,299)(16,893)

Employer's voluntary contributions (other)(4,381)(3,064)

Pensions paid directly to beneficiaries(3,486)(3,628)Provisions for employee benefits (-increase / + use and reversals)(3,164)(6,063)Pensions and other benefits
PAYROLL AND RELATED BENEFITS OF CONTINUING OPERATIONS

34(42,768)(50,229)(798,481)(853,140)

AVERAGE HEADCOUNT IN CONSOLIDATED COMPANIES

Notes

Date of grant

2020

2021

10-02-2020

11-02-2021
47.47

Share price at the date of grant (Belgium& Other)

F28

42.05

Share price at the date of grant (France)

F28

NA

NA

Number of stock options granted

F28

1,168,375

1,108,500

Valuation model

Present Economic Value

Assumed volatility (% pa)

25.00

27.50

Risk-free interest rate (% pa)(0.620)(0.710)

Dividend increase (% pa)

10.00

10.00

Rate of pre-vesting forfeiture (%pa)

NA

NA

Rate of post-vesting leaving (%pa)

7.50

5.00

Minimum gain threshold (% pa)

15.00

15.00

Proportion who exercise given minimum gain
achieved (% pa)

100.00100.00Fair value per granted instrument determinedat the grant date (EUR)

6.46

8.56

Total fair value of options granted

7,548

9,489

52.000 shares granted at 42,05 EUR

2,187

-

10.000 shares granted at 37,33 EUR

373-

10.000 shares granted at 49,72 EUR

-

497

2020

2021

Executives and managerial staff

2,009

2,045

52.000 shares granted at 47,08 EUR

-

2,448

Non managers

8,997

8,910

48.500 shares granted at 37,55 EUR

-

1,821

Total for continuing operations

11,006

10,955

Total fair value of shares granted

2,560

4,767

10,10814,255SHARE-BASED PAYMENTS

The Group recognized a share-based payment expense of € 14.3 million during the year forcontinuing operations.
The part of this expense related to stock options is calculated by an external actuary using the Present
Economic Value model which takes into account all features of the stock option plans and the volatilityof the underlying stock. This volatility has been determined using the historical volatility of the Group
shareholders’ return over different averaging periods and different terms. For the calculation of the option
value based on the lattice model, weekly steps were introduced, therefore focusing on a weekly term ofvolatility. The retained volatility assumption was set at 27.5% to reflect the increase of observed volatility.
No other market condition has been included in the basis of calculation of fair market value.

Umicore Financial Report 2021

Umicore Statements Backcover

The free share part of the expense is valued at the market price of the shares at the grant date. In 2021,
shares have been granted mainly to top management resulting in an extra charge of € 4.8 million forcontinuing operations.
The defined contribution plans of the Group in some countries like the USA, Canada, South Africa andGermany are directly recognized in the Consolidated income statement under the line “Contribution todefined contribution plans”.
The cash discounts that the authorities give back to Umicore Belgium on the social security contributions,relating to incentives regarding a.o. shift premiums, overtime and R&D are disclosed under the item
“Employer’s social security”.

F11 Finance cost – net
Thousands of Euros

2020

2021

Interest income

3,749

12,962

Interest expenses(61,659)(64,460)

Discounting of non-current provisions(3,146)(3,046)

Foreign exchange gains and losses(30,445)(23,480)

Other financial income

295

942

Other financial expenses(12,996)(13,210)(104,202)(90,292)

TOTAL OF CONTINUING OPERATIONS

All interest income and expenses are recognized using the effective interest rate method.
The 2021 interest income reached € 13.0 million benefiting from the € 9.3 million impact related to theinterests on the tax credit in Brazil , resulting from a landmark ruling by the Brazilian Supreme Court in
May 2021 and covering multiple years. Those related interests have been taken in adjustments (see noteF9). The interest expenses amounted to € 64.5 million. Those expenses included € 10.0 million of interest
expenses (theoretical phantom interests) on the debt component of the convertible debt (€ 5.2 million in2020) and € 1.0 million of interests related to leases as per IFRS 16.
The discounting of non-current provisions relates mainly to employee beneﬁts provisions and to a lesser
extent to environmental provisions. This amount is inﬂuenced by the present value of these liabilities,
which in turn is inﬂuenced by changes in the discount rate, by the cash-out proﬁle and by the recognitionof new non-current liabilities. Most of the discounting results in 2021 were booked in Germany and to alesser extent in Belgium.

35

Foreign exchange results, mainly explained by the cost of forward points in hedging instruments, include
realized exchange results and the unrealized translation adjustments on monetary items using the closing
rate of the period. They also include fair value gains and losses on other currency ﬁnancial instruments(see Note F33).
Other ﬁnancial expenses include payment discounts, bank expenses and other ﬁnancial fees incurred.

F12 Income from other financial investments
Thousands of Euros

2020

2021

Capital gains and losses on disposal of financial investments

517

946

Dividend income

230

210

Interest income from financial assets

14-

TOTAL FOR CONTINUING OPERATIONS

761

1,156

Umicore Financial Report 2021

Umicore Statements Backcover

F13 Income taxes
Thousands of Euros

2020

2021

Current income tax(115,672)(201,870)

Deferred income tax

56,542

22,826(59,131)(179,044)

Result from operating activities

304,592

878,938

Financial result(104,202)(90,292)

Profit (loss) before income tax of consolidated companies forcontinuing operations

200,390788,646

25.48

24.77

(51,055)(195,312)

Expenses not deductible for tax purposes(4,383)(7,395)Tax-exempted revenues

3,457

303

Dividends from consolidates companies & Associates

(267)

(66)

Income tax expense
Recognized in the income statement

Total tax expense for continuing operations
RELATIONSHIP BETWEEN TAX EXPENSE (INCOME) AND ACCOUNTING PROFIT

Weighted average theoretical tax rate (%)
Income tax calculated at the weighted average theoretical tax rate forcontinuing operations
Tax effect of :Gains & Losses taxed at a reduced rate

37

36

Tax incentives and tax holidays

14,563

26,903

Tax computed on other basis(1,657)563

Utilisation of previously unrecognized tax losses

4,349

4,130

Write down (or reverse of previous write down) of DTA

6,050(6,475)

Change in applicable tax rate

(31)

(300)

Other tax credits (excluding R&D tax credits)

958

1,058

Non recoverable foreign withholding taxes(12,003)(7,943)

Previous years adjustments

988(3,299)Other (including IFRIC 23)(20,135)

8,753

TAX EXPENSE AT THE EFFECTIVE TAX RATE FOR THE YEAR

(59,129)(179,044)

The weighted average theoretical tax rate evolved from 25.5% in 2020 to 24.8% in 2021 for the continuing
operations. Excluding the impact of adjustments, the adjusted effective tax rate for 2021 was 23.1%. This
compares to the 24.2% in 2020.

36

Umicore Financial Report 2021

Umicore Statements Backcover37

F14 Intangible assets other than goodwill
Thousands of Euros

Development expenses capitalized

Concessions, patents, licences, etc.

Software

CO2 emission rights

Other intangible assets

Total

At the beginning of previous year
Gross value

151,880

101,229

149,792

19,213

85,216507,329

Accumulated amortisation(98,113)(46,499)(122,842)-(25,721)(293,176)

Net book value at the beginning of previous year

53,76854,73026,94919,21359,494

214,154

-

82

40

-

(23)

98

13,784

50

5,404

-

24,82144,060. acquisition through business combinations. additions. disposals-(2,336)(3)(4,009)(217)(6,564). amortisation charged (included in "Depreciation and impairments")(12,708)(9,334)(8,267)-(4,901)(35,209). impairment losses recognized (included in "Depreciation and impairments")(17,299)(8,529)(1,485)--(27,313)

-

-

-

697

-

697

(450)

(6)

(346)

(3)

(908)

(1,712). emission rights allowances. translation differences. other movements

1,422

50

4,401

(0)

(3,186)

2,687

At the end of previous year

38,517

34,707

26,694

15,89875,081

190,897

Gross value

157,704

98,840150,989

15,898103,637

527,068

Accumulated amortisation(119,187)(64,134)(124,295)-(28,556)(336,172)

Net book value at the end of previous year

38,517

34,707

26,694

15,89875,081

190,897. additions

8,867

842

1,435

8

25,70236,854. disposals

(553)

-

(26)

0

(45)

(623)

. amortisation charged (included in "Depreciation and impairments")(9,424)(8,890)(8,119)-(4,691)(31,123). impairment losses recognized (included in "Depreciation and impairments")(5,099)(17,381)

(274)

-

(214)

(22,968)

-

-

-

1,979

-

1,979

. translation differences

(145)

5

329

(1)

533

722

. other movements

3,843

3,507

8,463

0

(10,287)

5,526
181,263. emission rights allowances

At the end of the year

36,006

12,79028,503

17,88486,079Gross value

156,213

104,755

158,921

17,884116,012553,785

Accumulated amortisation(120,207)(91,965)(130,418)-(29,932)(372,522)

NET BOOK VALUE FOR CONTINUING OPERATIONS

36,006

12,79028,503

17,88486,079181,263

In 2021, additions amounted to € 36.9 million and mainly contain capitalized expenses in internallygenerated developments for € 27.8 million (see note F9), of which € 19.0 million included in “Other
intangible assets” as “Intangible assets under construction”. Additions also contain capitalized expenses(studies, project costs, IT) related to the new cathode materials plant in Poland for around € 4.0 million.
Impairment losses are mainly linked to impairment of IP's following the closure of Automotive Catalysts'
heavy-duty diesel operations in Frederikssund, Denmark. Net increase of emission right allowances
amounts to € 1.9 million in 2021 (new grants € 7.8 million and settlement €-5.9 million). Other movements
mainly include the transfer between intangible assets in progress (included under “other intangible
assets”) and the other categories of intangible assets and transfers from tangible assets. The otherintangible assets category contains intangible assets in progress for € 69.2 million (mainly capitalized
development costs) but also some business portfolio and customers’ list acquired for € 16.3 million. There
are no pledges on, or restrictions to, the title on intangible assets, other than disclosed in note F35.

Umicore Financial Report 2021

Umicore Statements Backcover

F15 Goodwill
Thousands of Euros

31/12/2020

31/12/2021

Gross value

169,915

165,627

Accumulated impairment losses(13,210)(9,637)

Net book value at the end of previous year

156,705

155,990

At the end of the previous year

. acquisition through business combinations

1,499

-

. translation differences(2,214)

2,595

At the end of the year

155,990

158,585

Gross value

165,627

168,915

Accumulated impairment losses
NET BOOK VALUE FOR CONTINUING OPERATIONS(9,637)(10,330)

155,990

158,585

This table includes goodwill related to fully consolidated companies only. Goodwill relating to companies
accounted for using the equity method is detailed in note F17.
The change of the period relates only to translation differences.
The goodwill accounted in each of the CGU groups, but summarized by segment, is as follows:

Thousands of Euros

Catalysis

Energy &SurfaceTechnologies

RecyclingTotal

31/12/2020

49,99987,737

18,254

155,990

31/12/2021

49,98890,264

18,333

158,585

Management tests annually whether goodwill has suffered any impairment in accordance with theaccounting policy stated in note F2. Such impairment tests are performed at a cash generating unit level,
which may vary in scope from a total business unit to an individual plant but never a full segment scope.
The recoverable amounts of cash-generating units to which goodwill is allocated have been determinedbased on value-in-use calculations by means of discounted cash ﬂow modelling on the basis of theGroup’s operational plans which typically look forward 5 years, followed by a long term projection. On
macroeconomic and external indicators such as currency and metal prices, the testing uses typicallyprevailing market conditions at the time the plans are drafted. The rates used are typically the ones
observed on international exchanges in the last quarter of the year. The 2021 goodwill impairment testing
indicated sufficient headroom in the respective cash generating units and hence no goodwill impairments
were recognized. The 2021 impairment testing used an average tax rate of 25.0% (unchanged versus

382020) and a weighted average cost of capital post-tax of 7% (unchanged versus 2020) . A uniform WACC
rate was applied across cash generating units with unit-specific risk factors considered to be reflectedin the underlying cash flow projections. Terminal values were determined on the basis of a perpetual
growth rate of on average 2% (same as in 2020). Inflation rates were based on guidance from national
and international institutes such as the NBB or ECB.

Umicore Financial Report 2021

Umicore Statements Backcover39

F16 Property, plant and equipment
Thousands of Euros

Land and buildings

Plant, machineryand equipment

Furniture and vehicles

Other tangible assets

Construction in progress andadvance payments

Total

At the beginning of previous year without leasing
Gross value

1,189,490

2,402,378

242,362

15,070461,369

4,310,669

Accumulated depreciation(530,148)(1,553,922)(166,862)(13,950)-(2,264,881)

Net book value at the beginning of previous year without leasing

2,045,788

659,343

848,457

75,5001,120

461,369. acquisition through business combinations

3,510

(798)

548

-

876

4,136

. additions

20,66332,5887,852

364

330,009391,475. disposals

(10)

(938)

(176)

(20)

(134)

(1,278). depreciations (included in "Depreciation and impairments")(43,501)(148,434)(19,154)(194)-(211,282). net impairment losses recognized (included in "Depreciation and impairments")(15,053)(44,416)

(654)

(312)

-

(60,435). translation differences(18,017)(20,505)(2,321)(54)(16,266)(57,164). other movements

88,832

154,71420,807-(267,820)(3,466)

695,767

820,668

82,403903

508,033

2,107,775

At the end of previous year without leasing
At the beginning of the year without leasing
Gross value

1,242,294

2,478,662

260,590

23,522508,033

4,513,101

Accumulated depreciation(546,526)(1,657,994)(178,187)(22,619)-(2,405,326)

Net book value at the beginning of the year without leasing

695,767

820,668

82,403903

508,033

2,107,775. additions

76,36142,34914,97916,148229,435

379,272. disposals

(446)

(207)

(111)

(312)

(113)

(1,189)(47,462)(159,613)(20,906)(331)-(228,312). depreciations (included in "Depreciation and impairments"). net impairment losses recognized (included in "Depreciation and impairments")(462)(24,543)

(743)

312

-

(25,436). translation differences

16,70519,803600

39

24,674

61,822. other movements

50,119183,342

10,74640(249,089)(4,842)At the end of the financial year without leasing

790,583

881,799

86,96916,799512,941

2,289,090

Gross value

1,382,096

2,703,328

276,986

39,340512,940

4,914,690

Accumulated depreciation(591,513)(1,821,529)(190,017)(22,540)-(2,625,599)

NET BOOK VALUE FOR CONTINUING OPERATIONS WITHOUT LEASING

790,583

881,799

86,97016,799512,940

2,289,091

Umicore Financial Report 2021

Umicore Statements Backcover

40

Land and buildings

Plant, machineryand equipment

Furniture and vehicles

Other tangible assets

Construction in progress andadvance payments

Gross value

47,341

135

18,175500-

66,152

Accumulated depreciation(11,496)(58)(5,713)--(17,268)

Net book value at the beginning of previous year for leasing

48,884

Thousands of Euros

Total

35,84577

12,462500-. additions

17,901

1,034

8,578

144

-

27,657. depreciations (included in "Depreciation and impairments")(12,726)(724)(6,765)(142)-(20,357). translation differences(1,133)

(10)

(99)

(0)

-

(1,242)

979

(35)

-

-

-

944

40,866342

14,176502-

55,886Gross value

67,193

1,055

24,865637-

93,750

Accumulated amortisation(26,327)(713)(10,689)(135)-(37,864)

Net book value at the beginning of the year for leasing

55,886. transfer
At the end of previous year for leasing
Leasing at begining of the year

40,865342

14,176502-. additions

16,638

1,274

7,662

-

-

25,573. depreciations (included in "Depreciation and impairments")(11,907)(771)(7,330)(105)-(20,113). translation differences

1,336

2

40

0

-

1,378

. transfer

(681)

-

1

-

-

(680)

46,251847

14,549397-

62,043At the end of the financial year for leasing
Gross value

68,9582,310

28,436625-

100,329

Accumulated amortisation(22,707)(1,463)(13,888)(228)-(38,286)

NET BOOK VALUE FOR LEASING

46,251847

14,549397-

62,044

Tangible asset including leasing
Gross value

1,451,054

2,705,637

305,423

39,965

512,940

5,015,019

Accumulated amortisation(614,220)(1,822,992)(203,904)(22,769)-(2,663,885)

NET BOOK VALUE FOR CONTINUING OPERATIONS INCLUDING LEASING

836,834

882,646

101,519

17,196

512,940

2,351,134

Capital expenditures totaled € 389 million (including additions on intangible assets but without thecapitalized R&D costs as per Umicore's capital expenditures definition), compared with € 403 million
the previous year. Energy & Surface Technologies accounted for close to 60 % of the Group's capital
expenditures, driven by Rechargeable Battery Materials’ European expansion investments. This implies
a temporary slow-down in Energy & Surface Technologies’ capital expenditures compared to 2020. In
Catalysis and Recycling, capital expenditures only slightly increased compared to the low spending
levels of 2020. In Catalysis, Automotive Catalysts continued to focus on production footprint optimization
investments and targeted capacity expansions. In Recycling, the capital expenditures increase was
earmarked for environmental and safety-related investments in Precious Metals Refining.

Impairments on property, plant and equipment are mainly related to a decision to stop a development
program in Precious Metals Chemistry linked to the semiconductor industry.
The line ‘other movements’ mainly includes the transfer between tangible assets in progress and theother categories and to a lesser extent transfer to intangible assets.
There are no pledges on, or restrictions to, the title on property, plant and equipment, other than disclosed
in note F35.

Umicore Financial Report 2021

Umicore Statements Backcover

Umicore’s share in the aggregated balance sheet and profit and loss items of the associates and joint
ventures would have been as follows:

F17 Investments accounted for using the equity method
The investments in companies accounted for using the equity method are composed mainly of thefollowing associates and joint ventures:
Measurement
currency

Country

Percentage

Percentage

2020

2021

For continuing operations

Thousands of Euros

31/12/2020

31/12/2021

Assets214,719

270,781

Liabilities

101,894

143,037

Turnover

195,889

261,159

Net result(5,332)

17,347In the above table, there are no more assets and liabilities related to joint ventures.

Associates
IEQSA

Peru

Ganzhou Yi Hao Umicore Industries
Element Six Abrasives
Jiangmen Chancsun Umicore Industry Co.,LTD

PEN

40.00

40.00

China

CNY

40.00

40.00

United Kingdom

USD

40.22

40.22

China

CNY

40.00

40.00

The elements recognized in Other Comprehensive Income for investments accounted for using the equity
method are mainly related to employee benefits reserves and translation reserves.

F18 Financial assets at fair value through oci and loans granted

Thousands of Euros

Investments in associates are accounted for in accordance with the equity method and represent
approximately 1.7% of Umicore’s consolidated balance sheet total. Umicore has no individual material
investments in associates. Considering the objectives of the IFRS 12 disclosure requirements, the mostsigniﬁcant associate is Element Six Abrasives, in which Umicore holds 40.22%. Element Six Abrasives
is a synthetic diamond materials group, part of De Beers Group, its majority shareholder. The group
operates worldwide with primary manufacturing facilities in Ireland, Germany, the UK, the US and South
Africa. Element Six Abrasives is on an adjusted results basis a proﬁtable group, generating positive cash
ﬂow. The group’s functional currency is USD. Umicore is represented in the Board of Directors and theaudit committee of Element Six Abrasives. Besides its equity share in this company, Umicore has noother commitments, guarantees or obligations arising from its involvement in this associate. Adjustments
and material contingencies, if any, in respect of the ﬁnancial statements of Element Six Abrasives, areseparately disclosed under the relevant captions of Umicore’s consolidated ﬁnancial statements (see note
F36 for pending file qualified as contingent liability at Element Six Abrasives and note F9 for adjustments).
Net book value

Goodwill

Total

At the end of previous year

94,68345,156

139,839. profit for the year

17,347-

17,347. dividends(4,808)-(4,808). change in other reserves(3,114)-(3,114). translation differences

5,449

427

5,877

109,557

45,583

155,140

AT THE END OF THE YEAR FOR
CONTINUING OPERATIONS

Financial assets at FV
through OCI

Loans granted

10,897

2,192

1,633

753

Non-current financial assets
At the beginning of previous year

Thousands of Euros

41. increase. reversals of impairment losses (included in"Income from other financial instruments"). translation differences. fair value recognized in equity

2

-

(45)

(79)

(4,193)

-

59

386

8,352

3,252

5,014

39

. translation differences

78

36. fair value recognized in equity

(43)

-

. other movements

719

(719)

14,1202,608. other movements
At the end of previous year
. increase

AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONSCURRENT FINANCIAL ASSETSAt the end of the preceding financial year-80

. increase-132. translation differences-1. other

-

(44)

-

169

AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONSIn 2021, the movements in non-consolidated entities include, amongst other, the equity investment in adeveloper of next-generation solid state batteries.

Umicore Financial Report 2021

Umicore Statements Backcover

F20 Trade and other receivables

F19 Inventories
Thousands of Euros

Thousands of Euros

31/12/2020

31/12/2021

2,706,918

2,874,788.Permanently tied up metal inventories (not hedged)

775,213834,372.Commercially available metal inventories (hedged) (*)

1,477,096

1,364,202454,609676,214TOTAL FOR CONTINUING OPERATIONS.Other base products inventories (not hedged)

Notes

31/12/2020

31/12/2021

Non current

Analysis of inventories
Base products - gross value

42

Cash guarantees and deposits

8,370

9,737

Other receivables maturing > 1 year

2,574

10,217

Assets employee benefits

820

718

11,764

20,672

1,366,686

1,394,540

Consumables - gross value

102,163

111,128

Current

Write-downs(105,715)(118,279)

Trade receivables (at cost)

Advances paid

7,222

12,059Trade receivables (write down)(22,319)(18,771)

Contracts in progress

7,503(10,626)

Other receivables (at cost)

177,008

243,7462,718,092

2,869,071

TOTAL INVENTORIES FOR CONTINUING OPERATIONS* applying Umicore's transactional metal hedging - see note F2.21.1 and F3.2.2

Inventories have increased by € 151.0 million compared with December 2020. This increase is mainly due
to higher metal prices impacting the value of the commercially available metal inventories. The increaseof permanently tied up inventories is mainly linked to the battery materials activities, where ramp-up of
production capacity and commissioning of new production lines requires higher quantities of permanent
metal inventory.
The total gross book value of Umicore’s permanently tied-up metal inventories at 31 December 2021
compares to a value of € 3,298 million when applying the 31 December market prices (€ 3,008 million at
end December 2020).
As per the accounting policy with regards to permanently tied-up metal inventories (see Chapter 2.9), thepermanently tied-up metal inventories are considered to have an unlimited useful life (no depreciations
are applied) and are instead subject to Umicore’s annual impairment testing of the CGU’s carrying theseinventories. Applying the LOCOM principle on permanently tied-up metal inventories on 31 December 2021
would have given rise to a non-cash impairment charge of € 0.9 million for the Group.
The change in inventory recognized in Raw Materials and Consumables in the consolidated income
statement is a positive amount of € 76 million (representing the cash movements on inventory balances).
The net write-down of inventory recorded in the consolidated income statement in 2021 amounts to€ 10 million.
There are no pledges on, or restrictions to, the title on inventories.

Other receivables (write down)

(207)

(207)

Interest receivable

495

1,439

Fair value receivable financial instruments held for
cash-flow hedging

F33

45,09180,452

Fair value receivable - financial instruments related
to FV hedging (IFRS 9 hedge accounting)F33

21,511

9,868

Fair value receivable - financial instruments related
to FV hedging (economic hedging)

1,931

3,977

Deferred charges and accrued income

86,973116,989

TOTAL FOR CONTINUING OPERATIONS

1,677,167

1,832,033

Compared to 31 December 2020, trade receivables substantially increased driven mainly by higher sales
volumes and higher metal prices.

Umicore Financial Report 2021

Umicore Statements Backcover

Overdue between
Thousands of Euros

Total

Not due

0-30 days

30-60 days

60-90 days

> 90 days

Trade receivables (w/odoubtful and securitizedreceivables) - at cost

1,328,476

1,161,303

137,088

21,569

4,384

4,131

Other receivables - at cost

177,007

176,020

-

-

223

765

Loss allowance

14,888

9,412

1,291

334

240

3,611

Expected loss rate

0.99%

0.70%

0.94%

1.55%

5.20%

73.75%

Ageing balance analysis
at the beginning of
the year

Ageing balance analysis
at the end of year
Trade receivables (w/odoubtful and securitizedreceivables) - at cost

1,357,690

1,222,865

111,435

12,724

6,021

4,645

Other receivables - at cost

243,746

236,195

2,940

1,186

252

3,173

Loss allowance

16,595

10,006

1,465

270

692

4,162

Expected loss rate

1.04%

0.69%

1.28%

1.94%

11.03%

53.24%CREDIT RISK – TRADE RECEIVABLES
Thousands of Euros
At the beginning of previous year

Trade receivables (write­ Other receivables (write­
down)
down)

Total

(22,983)(207)(23,190). Impairment losses recognized in P&L(3,943)342(3,602). Reversal of impairment losses

4,328

-

4,328

. Impairment written off against asset
carrying amount. Other movements

48

-

48

(408)

(346)

(755)

. Translation differences

639

5

644

At the end of previous year

(22,320)(207)(22,526)

At the beginning of the financial year

(22,320)(207)(22,526). Impairment losses recognized in P&L(1,761)-(1,761). Reversal of impairment losses

1,535

-

1,535

. Impairment written off against asset
carrying amount

4,564

4,564

-

. Other movements

129

-

129

. Translation differences

(918)

0

(917)

(18,771)(207)(18,978)

AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONS

43

The Group applies the IFRS 9 simplified approach to measure expected credit losses which uses a
lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, tradereceivables have been grouped based on shared credit risk characteristics and the days past due. The
expected loss rates are based on historical payment profiles of sales and the corresponding credit losses
experienced. The historical loss rates are adjusted to reflect current and forward-looking information on
macro-economic factors affecting the ability of the customers to settle the receivables. The Group has
identified macro-economic factors, Probability of Default (PD) and Loss Given Default (LGD) to be themost relevant factors, and accordingly adjusts the historical loss rates based on expected changes inthese factors.
In principle, Umicore uses credit insurance as a means to mitigate the credit risk related to tradereceivables. In 2021, two main credit insurance policies with two different insurers were in place. At
closing, € 462 million of the Group's outstanding invoices were covered by a policy where indemniﬁcationin case of non-payment amounts to 95% with an indemniﬁcation cap set at regional or country level.
The other policy covered € 262 million of trade invoices with a global annual deductible of € 5 million, amaximum indemnity per year of € 100 million and an indemnification in case of non-payment of 90%.
The Group also managed credit exposure by selling invoices to financial institutions without recourse(€ 410 million end of 2021 compared to € 301 million end of 2020), partly covered by the above credit
insurance policies. Under one of these facilities, the carrying amount of receivables sold before thetransfer amounts to € 220 million while total carrying amount of the assets that the entity continues
to recognize and the related continuing involvement liability equal to € 17.6 million as of 31 December
2021. The latter consist mainly of non-transferred credit risk as well as late payment risk over the relevant
portfolio. Other facilities amounted to € 190 million are derecognized in their entirety.
Specifically in China, Umicore reduces credit risk by discounting bank acceptance drafts it receives fromits customers without recourse (and hence derecognized) (€ 290 million end of year 2021 compared to€ 245 million end of 2020).
Finally, some of our businesses function without credit insurance and instead internal credit limits are set
based on available ﬁnancial information and business knowledge. Theses limits are duly reviewed andapproved by management.

Umicore Financial Report 2021

Umicore Statements Backcover

F21 Tax assets and liabilities

AssetsThousands of Euros

Thousands of Euros

31/12/2020

31/12/2021

39,553

46,762

Tax assets and liabilities
Income tax receivables
Deferred tax assets

221,938

219,248

Income tax payable(160,734)(197,488)

Deferred tax liabilities(22,846)(24,294)

AssetsThousands of Euros
At the end of preceding
financial year
Deferred tax recognized in
the P&L
Deferred tax recognizedin equity

2020
168,927
59,688

Liabilities
2021
221,938
18,1192020(11,461)(3,146)(22,846)
4,707

2020
157,466
56,542

Goodwill on fully
consolidated companies

22,14425,797(11,043)(6,392)

11,101

19,405

11,506

11,848(29,644)(29,662)(18,138)(17,814)

1,371

141

(181)

(470)

1,190

(329)

Inventories

41,534

77,332(33,159)(27,804)

8,375

49,528Trade and other receivables

8,212

15,529(25,600)(58,640)(17,388)(43,111)

Group Shareholder's equity-

105(6,148)(3,959)(6,148)(3,854)

199,092

Long Term Financial Debt
and other payable

11,68815,743(18,023)(24,307)(6,335)(8,564)

22,826

Provisions
Employee Benefits

89,76477,506(8,267)(7,299)81,49770,207

Provisions for Environment

26,15029,969

(378)

(205)

25,772

29,764

Provisions for otherliabilities and charges

12,96822,889

(583)

(658)

12,38522,231

Current Financial Debt

40

1,224

(1,080)(4,858)(1,040)(3,634)

1,969

1,969

-

-

1,969

1,969

2021

-

(359)

-

(359)

-

Translation adjustments(6,199)

5,359

218

(84)

(5,981)

5,275

Transfer

11,722(2,085)(11,722)

2,085

-

-

8

(761)

(8)

-

-

(761)

199,092

Intangible assets

Long term receivables-(24,294)

2021

(556)

(31,478)(22,846)

2020

(514)

(8,576)219,248

2021

(556)

(8,156)

221,938

2020

(514)

3,632

AT THE END OF
FINANCIAL YEAR FOR
CONTINUING OPERATIONS

2021

-

(23,322)

Other movements

2020

Deferred tax in respectof each type of
temporary difference-(12,208)

Acquisitions throughbusiness combination

Net

Property, plantand equipment

Net
2021

Liabilities

44

194,954

Current Provisions
for Environment
Current Provisions for Other
Liabilities & Charges

9,952

4,281

(8)

(8)

9,944

4,273

Trade and other payables

67,076

60,570(1,309)(877)

65,767

59,693

Total deferred tax due totemporary differences

304,374

344,903(135,937)(165,695)

168,437

179,208

Tax losses tocarry forward

70,25780,051--

70,25780,051

867

650

-

-

867

650

3,389

2,236

-

-

3,389

2,236

Deferred tax assets
not recognized(43,858)(67,191)--(43,858)(67,191)

Total tax
assets/liabilities(135,937)(165,695)

199,092

194,954

199,092

194,954

Investments deductions
Other

335,029

360,649

Compensation of assets andliabilities within same entity(113,091)(141,401)

113,091

141,401

NET AMOUNT

221,938

219,248(22,846)(24,294)

Umicore Financial Report 2021

Umicore Statements BackcoverThousands of Euros

2020

2021

2020

2021

Base

Base

Tax

Tax

Amount of deductible temporary differences, unused
tax losses or tax credits for which no deferred tax asset
is recognized in the balance sheet
Expiration date with no time limit

F22 Net cash and cash equivalents
Thousands of Euros

158,635

249,850

43,85867,191

The changes of the period in temporary differences are charged to the consolidated income statement
except those arising from events that were recognized directly in the consolidated statement ofcomprehensive income.

Deferred tax assets are only recognized to the extent that their utilization is probable, i.e. if a tax beneﬁt is
expected in future periods. The Group assesses a recoverability in a range of 5 to 10 years. The actual tax
results in future periods may differ from the estimate made at the time the deferred taxes are recognized.
Unrecognized deferred tax assets of € 67.2 million mainly arise from tax losses (€ 61.6 million).
In accordance with IAS 12, a deferred tax liability on untaxed reserves of the Belgian companies,
amounting potentially to € 37.5 million, has not been recognized as management anticipates that thisliability will not be incurred in a foreseeable future.
Group current income tax payable at 31 December 2021 amounting € 197.5 million (2020 : € 160.7 million)
include uncertain tax positions of € 101.1 million (€ 114.9 million in 2020).

31/12/2020

31/12/2021

373,904

272,965

Cash and cash equivalents
Short-term investments : bank term deposits
Short-term investments : term deposits (other)
Cash-in-hands and bank current accounts
Total cash and cash equivalents
Bank overdrafts
NET CASH AS IN CASH FLOW STATEMENT FOR CONTINUING OPERATIONS

The main movements in deferred tax recognized directly in the consolidated statement of comprehensive
income are deferred taxes generated by temporary differences included within the lines "Trade and otherreceivables" (negative by € 8.3 million), “Provisions for employee beneﬁts” (negative by € 12.7 million)and “Trade and other payables” (negative by € 10.7 million).

45

5

43

636,397

921,428

1,010,307

1,194,437

8,678

28,1221,001,629

1,166,315

All cash and cash equivalents are fully available for the Group.
Liquidity risk management implies maintaining sufficient cash and marketable securities, the availabilityof funding through an adequate amount of committed and uncommitted credit facilities and the ability
to close out market positions.
Due to the dynamic nature of the underlying businesses, the Group aims to maintain funding flexibility
through committed credit lines. Excess liquidities are invested for very short periods and are spread overa limited number of banks, all enjoying a satisfactory credit rating.

Umicore Financial Report 2021

Umicore Statements Backcover46

F23 Currency translation differences and other reserves
The detail of the Group’s share in currency translation differences and other reserves is as follows:

Thousands of Euros
Balance at the beginning of previous year
Remeasurements recognized in other comprehensive income

Conversion
rights Financial assets Cash flow hedge Cash flow hedge
recognized in
at FV throughreserves reserves - Cash flow hedge
equityOCI reserves
Commodities
Currencies reserves - IRS

Changes in post
employment
Deferred taxes benefits, arising
directly from changes inrecognized in
actuarial
OCI
assumptions

-

1,141

(33,865)

5,493

(687)

87,094(298,028)

Share-based
payment
reserves

Currencytranslationdifferences

Total

37,271(82,873)(284,454)-(4,198)(20,951)

7,972

(84)

(513)

(27,632)--(45,406)

50,324

-

-

-

-

-

-

10,108-60,432Remeasurements derecognized out of other comprehensive income--

27,054

2,707-(8,057)---

21,704

Transfer from/to retained earnings

-

-

-

-

-

-

-

(2,737)-(2,737)

Other movements

-

-

-

-

-

868

(1,775)

-

-

(908)

Exchange differences

-

5

74

549

-

(204)

2,403

-

(119,284)(116,457)

BALANCE AT THE END OF PREVIOUS YEAR

50,324(3,052)(27,688)

16,721(771)

79,187(325,033)

44,642(202,157)(367,826)

Balance at the beginning of the year

Remeasurements recognized in equity

50,324(3,052)(27,688)

16,721(771)

79,187(325,033)

44,642(202,157)(367,826)

Remeasurements recognized in other comprehensive income-

269,150(16,354)(1,971)(25,487)

48,082--73,423Remeasurements recognized in equity

-

-

-

-

-

-

-

14,255-

14,255Remeasurements derecognized out of other comprehensive income--

28,949(14,165)-(6,044)

(0)

-

-

8,740

Transfer from/to retained earnings

-

-

-

-

-

-

-

(5,904)-(5,904)

Change in scope

-

-

-

-

-

912

(3,026)--(2,114)

Exchange differences

-

40

393

150

(143)

(176)

(2,107)-84,89883,05550,324(3,009)70,804(13,649)(2,885)48,392(282,084)

52,994(117,259)(196,370)

BALANCE AT THE END OF THE YEAR

The net gains recognized in the OCI regarding cash ﬂow hedges (€ 50.8 million) are the changes in fair value of new cash ﬂow hedging instruments or existing ones at opening but which have not yet expired atyear end. The net losses derecognized from OCI (€ 14.8 million) are the fair values of the cash-ﬂow hedging instruments existing at the opening which expired during the year. The total impact incurred at expirationof the cash-flow hedges during the year represents a loss of € 3.6 million, recognized in the income statement. This amount includes the mentioned net losses derecognized from OCI (€ 14.8 million) and the fairvalue changes incurred in the course of the year on expired existing cash-flow hedges and on new instruments contracted during the year (€ 11.2 million).
New net remeasurements as a result of changes in the actuarial assumptions on the deﬁned post-employment beneﬁt plans have been recognized in OCI for € 48.1 million (refer to Note 27 on Provisions for employee
benefits). The 2021 shares and stock option plans have led to a share-based payment reserve increase of € 14.3 million (refer to note F10 on employee beneﬁts). € 5.9 million, linked to exercised options and freeshares plans, have been transferred to retained earnings.
The movements on exchange differences are mainly related to the strengthen of the USD, CNY, HKD and BRL compared to EUR. The total exchange differences are mainly impacted by the following currencies : BRL,
KRW, PLN, CNY, ZAR, CAD, ARS and USD.

Umicore Financial Report 2021

Umicore Statements BackcoverF24 Financial debt
Thousands of Euros

Bank loans

Lease liability

Other loans

Total

Non-current
At the beginning of previous year

1,101,266

46,262

3,555

1,151,083. Increase

125,000

27,657494,360

647,017. Decrease-(19,801)(304)(20,105)(146)(1,251). Translation differences. Transfers(21,120). Conversion rights recognized in equity-

At the end of previous year

1,205,000

5(1,392)(4)(21,124)(50,324)(50,324)

52,865447,289

1,705,154. Increase-

25,57332,10957,682. Decrease-(19,534)(824)(20,358). Translation differences

-

1,400

(0)

1,400

. Transfers
At the end of the financial year for continuing operations

-

2,588

(22,430)(19,842)

1,205,000

62,892456,145

1,724,037

Current portion of long-term financial debts
At the end of the preceding financial year

21,790-158

21,948. Increase / decrease(22,144)-

1,785(20,359). Translation differences

354

-

(40)

314

-

-

18,09718,097--20,00020,000

Short term bankloans Bank overdrafts

Short termloan :
commercial
paper. Transfers
At the end of the financial year for continuing operations

Thousands of Euros

Other loans

Total

Current
At the end of the preceding
financial year

554,266

8,678

134,2824

697,230. Increase / decrease(204,601)

19,093(126,277)(1,786)(313,571). Transfers. Translation differences
At the end of the financial year forcontinuing operations

-

-

-

1,745

1,745

25,055351-

38

25,444

374,720

28,1228,005

1410,847

Net financial debt at 31 December 2021 stood at € 960.4 million, down compared with € 1,414.0 million
at the start of the year.

47

The financial debt includes the US private debt placements issued in 2019 (€ 390 million; fair valueof € 396.4 million) and in 2017 (€ 360 million; fair value € 377.9 million), the Schuldschein issued in2017 (€ 330 million; fair value € 336.6 million), the European Investment Bank (EIB) loan issued in 2020(€ 125 million; fair value € 122.0 million) and the convertible bond issued in 2020 (€ 500 million ; fair value€ 456.1 million).
On December 31, 2021, an amount of € 5 million was outstanding on the French NEU CP program and an
amount of € 20 million was outstanding on the French NEU MTN program (out of € 600 million available
under each program).
An amount of € 3 million was outstanding on the Belgian Commercial Paper program (out of € 600 million
available under the program).
On December 31, 2021, there were no outstanding advances neither under the € 500 million SyndicatedBank Credit Facility renewed in 2021 and maturing in October 2026, nor under the € 495 million SyndicatedBank Credit Facility maturing in April 2025.
The aforementioned Syndicated Bank Credit Facilities and the long term debt instruments require theCompany to comply with certain ﬁnancial covenants. Umicore has not faced any breach of those covenantsin 2021 or in previous years.
The long-term debts mainly consist in debt instruments in EUR.
The average interest rate on the average gross debt amounted to 2.23% for full year 2021 (1.91% for fullyear 2020).
The line "new loans and repayment of loans" in the consolidated statement of cash flow do not include
the movements on bank overdrafts and the currency translation differences, nor the theoretical phantom
interests on the debt component part of the convertible debt (€10.0 million in 2021) which is non cash.
The net gearing ratio (see definition in Glossary) end of 2021 of 23.3% (35.0% in 2020) and the net financial
debt over adjusted EBITDA ratio of 0.77x (compared to 1.76x end of 2020) position the Group well within
its targeted capital structure limits.

Umicore Financial Report 2021

Umicore Statements BackcoverThousands of Euros

Type of Interest

Due within 1 Due between 1
year
and 5 years

Due beyond 5
years

Total

Gross Financial debt of previous year
Lease Liabilities-

40,47812,38752,865Credit Institutions

Fixed/Floating

584,895

3,190-

588,085

Commercial Papers

Floating

134,282--

134,282

Schuldschein

Fixed/Floating-

287,000

43,000330,000

US Private Placement

Fixed

-

-

750,000

750,000

EIB Loan

Fixed

-

-

125,000

125,000

Convertible Bond

Fixed

TOTAL

Thousands of Euros

Type of Interest-

444,100-

444,100

779,177

774,768

930,3872,424,332

Due within 1 Due between 1
year
and 5 years

Due beyond 5
years

Total

48

Gross outstanding debt
Short term bank loans

17.4%Long term bank loans

55.9%

Commercial paper

0.4%Bank overdrafts

1.3%

Lease liability

2.9%

Convertible Bond

21.2%

Other bank facilities

0.9%

Millions of Euros

2020

Net financial debt

1,414.0

960.4

Equity2,621.9

3,167.3

Total

4,035.9

4,127.7

35.0

23.3

31/12/2020

31/12/2021

Gearing ratio (%)

2021

Gross Financial debt of the year
Lease Liabilities-

45,20917,68362,892Credit Institutions

Fixed/Floating

402,847--

402,847

Commercial Papers

Floating

28,000--28,000Schuldschein

Fixed/Floating-

287,000

43,000330,000

US Private Placement

Fixed

-

50,000700,000

750,000

EIB Loan

Fixed-

125,000-

125,000

Convertible Bond

Fixed

-

456,145-456,145

430,847

963,354760,683

2,154,884

TOTAL

F25 Trade debt and other payables
Thousands of Euros

Notes

Non-current
Other long-term debts

5,682

6,540

Investment grants and deferred income from grants

17,82340,821

Total for continuing operations

23,50547,361

Current
Thousands of Euros

EUR

Total

Analysis of long term debts by currencies (including current portion)
Bank loans
Other loans
NON-CURRENT FINANCIAL DEBTS (INCLUDING CURRENT PORTION)
Thousands of Euros
Non current financial debt
Current portion of non current financial debt
Current financial debt

1,205,000

1,205,000

476,145476,145

1,681,145

1,681,145

2020

2021

1,705,154

1,724,037

21,94820,000697,230

410,847

Cash and cash equivalents(1,010,307)(1,194,437)

NET FINANCIAL DEBT

1,414,024

960,447

Trade payables

1,896,099

2,196,225

Advances received on contracts in progress

32,18029,851

Tax payable (other than income tax)

38,31732,885

Payroll and related charges

135,835

168,014

Other amounts payable

39,73367,708Dividends payable

11,618

11,612

Accrued interest payable

9,109

10,326

Fair value payable financial instrument held for cash
flow hedging

F33

57,95724,504

Fair value payable - financial instruments related to
FV hedging (IFRS 9 hedge accounting)F33

18,70831,874

Fair value payable - financial instruments related to
FV hedging (economical hedging)

19,589433

Accrued charges and deferred income

159,784

234,534

2,418,928

2,807,966

Total for continuing operations

Umicore Statements BackcoverCompared to 31 December 2020, trade payables increased, driven mainly by more purchase volumes athigher metal prices with longer payment terms. Trade payables include bank acceptance drafts issued
by Umicore in China. Bank acceptance drafts are a commonly used form of payment in China, often
preferred by suppliers in view of their transferrability, their use as financing collateral or their ability to
be discounted. End of 2021, Umicore issued € 260 million of bank acceptance drafts in China (compared to€ 280 million end of 2020). Trade payables end of 2021 include contracted metals to be repurchased for
an amount of € 136 million (compared to € 230 million end of 2020). The tax payables (other than incometax) mainly include VAT payables.
Umicore has no global supply chain programme. However, some suppliers have agreements in placewith banks through which Umicore is expected to provide confirmation that suppliers invoices are correct
and will be settled on the due date. At the end of 2021, such confirmations were provided for a total
outstanding payable amount of € 242 million.

Umicore Financial Report 2021

49

Umicore Financial Report 2021

Umicore Statements Backcover50

F26 Liquidity of the financial liabilities
PREVIOUS FINANCIAL YEAR
Earliest contractual maturity
Thousands of Euros< 1 Month

1 to 3 Months

3 Months to 1 Year

1 to 5 Years> 5 years

Total

Financial debt

274,765

90,870353,542774,766

930,3872,424,330

Current

274,765

90,870353,542--

719,177

231,384

55,590267,293--554,266

Bank overdrafts

8,678

-

-

-

-

8,678

Short-term loan: commercial paper

25,00035,25074,032--

134,282

Short term bank loans

Other loans

-

4

-

-

-

4

Current portion of long-term bank loans

9,691

-

12,099--21,790Current portion of other long-term loans

13

26

119

-

-

158

-

-

-

774,766

930,387

1,705,153

Bank loans

-

-

-

287,000

918,000

1,205,000

Lease liability

-

-

-

40,47812,38752,865

Other loans

-

-

-

447,2880447,288

TRADE AND OTHER PAYABLES

1,377,057

362,626

659,330

32,008

11,4092,442,430

Current

1,377,057

362,626

659,330

19,912-

2,418,925

1,105,279

246,622544,198--

1,896,099

Advances received on contracts in progress

13,58618,199395--

32,180

Tax payable (other than income tax )35,188

2,591

539

-

-

38,317

Payroll and related charges

38,663

41,76555,407--

135,835

Other amounts payable

28,760

4,627

6,346

-

-

39,733

Dividends payable

11,618----

11,618

Accrued interest payable, third parties

6,960

1,653

496

-

-

9,109

Fair value payable financial instrument held for cash
flow hedging

471

9,324

28,631

19,527-

57,953

Fair value payable - financial instruments related to FV
hedging (IFRS 9 hedge accounting)

9,405

6,075

2,844

385

-

18,708Non-current

Trade payables

Fair value payable - financial instruments related to FV
hedging (economical hedging)
Accrued charges and deferred income
Non-current

6,715

11,827

1,047

-

-

19,589120,413

19,943

19,428--

159,784
23,505---

12,096

11,409Other long-term debts

-

-

-

1,182

4,500

5,682

Investment grants and deferred income from grants

-

-

-

10,914

6,909

17,823

Umicore Financial Report 2021

Umicore Statements Backcover51

FINANCIAL YEAR
Earliest contractual maturity(EUR thousand)< 1 Month

1 to 3 Months

3 Months to 1 Year

1 to 5 Years> 5 years

Total

Financial debt

252,20969,764

108,874

963,354760,683

2,154,884

Current

252,20969,764

108,874--

430,847

Short term bank loans

216,083

69,764

88,873--374,720

Bank overdrafts

28,122----

28,122

Short-term loan: commercial paper

8,005

-

-

-

-

8,005

Other loans

-

-

1

-

-

1

Current portion of other long-term loans--

20,000--20,000Non-current

-

-

-

963,354760,683

1,724,037

Bank loans

-

-

-

462,000

743,000

1,205,000

Lease liability

-

-

-

45,20917,68362,892Other loans

-

-

-

456,1450456,145

Trade and other payables

1,868,161

583,445

342,920

48,27812,522

2,855,327

Current

1,868,161

583,445

342,920

13,439-2,807,966

1,539,519

463,937

192,769--

2,196,225

Advances received on contracts in progress

16,545

9,155

4,151

-

-

29,851

Tax payable (other than income tax )26,481

6,186

218

-

-

32,885

Payroll and related charges

50,94342,202

74,869--168,014

Other amounts payable

26,12027,63913,949--67,708Dividends payable

11,612----

11,612

Accrued interest payable, third parties

6,777

139

3,410

-

-

10,326

Fair value payable financial instrument held for cash
flow hedging

1,949

1,831

10,942

9,782-

24,504

Fair value payable - financial instruments related to FV
hedging (IFRS 9 hedge accounting)

8,974

12,550

6,693

3,657

-

31,874

Trade payables

Fair value payable - financial instruments related to FV
hedging (economical hedging)
Accrued charges and deferred income
Non-current

-

-

433

-

-

433

179,242

19,80635,487--

234,534
47,361---

34,83912,522Other long-term debts

-

-

-

1,178

5,362

6,540

Investment grants and deferred income from grants

-

-

-

33,661

7,161

40,821

Umicore Financial Report 2021

Umicore Statements Backcover

F27 Provisions for employee benefits
The Group has various legal and constructive defined benefit obligations, the vast majority of them being“final pay” plans linked to the Belgian and German operations.

Thousands of Euros
At the end of the previous year

Postemployment
benefits,
Postemployment
pensions andsimilar benefits - otherTermination
benefits early Other long-term
employeeretirement &similarbenefits

Umicore deﬁned beneﬁt pension schemes for the 2 major countries are the following:
Total

380,834

2,633

27,08715,802426,356

38,091

252

6,635

2,887

47,864. Reversal (included in "Payroll andrelated benefits")

659

-

-

(48)

611

(35,968)(130)(5,322)(1,010)(42,430). Interest and discount rate impacts(included in "Finance cost - Net"). Translation differences. Transfers. Recognized in othercomprehensive income
AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONS

Thousands of Euros

3,092

7

6

93

3,198

3

(4)

(129)

(10)

(141)

927

-

(689)

(295)

(57)

(48,255)

60

(0)

(0)

(48,196)339,383

2,817

27,58817,418387,206

31/12/2020

Movements 2021

Belgium

95,573(18,512)77,061

Germany

300,743(20,316)

280,427

Subtotal

396,316(38,828)

357,488

30,040(322)

29,718426,356(39,150)

387,206

Other entities
TOTAL FOR CONTINUING OPERATIONS

The defined contribution plans of the Group in some countries like in the USA, Canada, South Africa andGermany are not part of this note as the amounts are directly recognized in the income statement under
the line “Contribution to defined contribution plans” (see note F10).
The following disclosure requirements under IAS 19 amended were derived from the reports obtained
from external actuaries.

. Increase (included in "Payroll andrelated benefits"). Use (included in "Payroll andrelated benefits")

52

31/12/2021

The ﬁrst table shows the balances and the movements in provisions for employee beneﬁts of the fully
consolidated subsidiaries only.
The termination benefits mainly concern some severance pay schemes in Korea and Belgian pre­retirement plans. Other long-term benefits mainly concern jubilee premium in Belgium and Germany.
The lines “Increase”, “Reversal” and “Use” of employee benefits provisions can be linked with the line
“Provisions for employee benefits” of the note F10. The amount recognized in other comprehensive
income originates mainly from an increase in discount rates on the pension plans. A reconciliation with
the note F23 and the consolidated statement of comprehensive income is provided in the tables below.

Umicore Financial Report 2021

Umicore Statements Backcover

BELGIUM

Characteristics of the Defined Benefit plans Umicore companies in Belgium operate deﬁned beneﬁtplans that provide retirement or long-term employee beneﬁts which are related to salary and age or
length of service. These retirement and long term benefit plans represent a deﬁned beneﬁt obligationof € 309.2 million and assets for € 232.1 million. They foresee in lump sum or monthly payments uponretirement or pre-retirement and beneﬁts in case of reaching a number of years of service or in case ofdeath or disability prior to retirement.
The net provisions for pension of € 77.1 million can be broken down in post-employment defined benefit
plans (€ 54.0 million of which € 167.3 million is the obligation and € 113.3 million relates to plan assets),
termination benefits plan (€ 4.8 million of obligation not funded), jubilee premium (€ 3.5 million, notfunded) and post-employment defined contributions plans and bonus saving plans with guaranteed returnand therefore treated as Defined Benefit plans (€ 14.8 million of which € 133.6 million is the obligationand € 118.8 million relates to plan assets).
Funding The post-employment plans are externally funded through either insurance companies or aself-administrated institution for occupational retirement provision (“IORP”). For the IORP, the necessary
governance processes for risk management are in place. One of the risk measures is to perform on aregular basis a “Continuity Test” in which the consequences of strategic investment policies are analyzed
in terms of risk- and-return proﬁles and solvency measures. A statement of investment principles andfunding policy are derived from this. The purpose is to have a well-diversiﬁed asset allocation to control
the risk.
Fair values of plan assets The fair values of the equity and debt instruments are determined based onquoted market prices in active markets (level 1 fair value classification). The plans hold no direct positionsin Umicore shares or bonds, nor do they own any property used by an Umicore entity. Investments are welldiversified so that the failure of any single investment would not have a material impact on the overalllevel of assets.

GERMANY

Characteristics of the Defined Benefit plans The post-employment beneﬁts are mainly unfundedpension plans of deﬁned beneﬁt type providing retirement, disability and death beneﬁts. All beneﬁt plans
are based on ﬁnal or ﬁnal average pay excluding the deferred compensation plans. The beneﬁts of thedeferred compensation plan are based on annual converted salary and provide a guaranteed interest of
3.0% p.a. (6.0% p.a. for salary conversions before 2014). All post-employment plans represent a deﬁned
beneﬁt obligation of € 288.2 million and assets for € 7.8 million.
The net provisions for pension of € 280.4 million mainly includes the Degussa pension defined benefit
plans, including the contribution plan where the inflation and interest rate adjustments of the benefits areguaranteed (€ 207.4 million), the closed and open compensation plans (€ 57.4 million), a jubilee premium
plan (€ 8.5 million) and other termination benefits (€ 7.1 million).
Funding As mentioned above, the post-employment benefits are mainly unfunded plans. A minor partis funded by pledged reinsurance contracts.
Fair values of plan assets All plan assets relate to pledged insurance contracts and have no quoted
market price.

The most significant risks related to the defined benefit plans are:
● Asset volatility: The plan liabilities are calculated using a discount rate set with reference to corporatebond yields; if plan assets underperform this yield, this will create a deficit.

53● Changes in bond yields: A decrease in corporate bond yields will increase plan liabilities, although thiswill be partially offset by an increase in the value of the plan’s bond holdings.
● Salary risk: The majority of the plans’ benefit obligations are calculated by reference to the futuresalaries of plan members. As such, any salary increase of plan members higher than expected will leadto higher liabilities.
● Longevity risk: All pension plans beside the new deferred compensation plan as from 2014 provide
life annuities which involve the risk of longevity i.e. the risk that the payment period of the pension
increases due to the increase in life expectancy. The company uses mortality rates which depend on
the year of birth to include this risk in the pension obligation.
● Risk of cash outflow: Since death as active and disability benefits are provided there is a risk of cash
outflow before retirement.
● Legislation risks: If the law which define the benefit changes, it can result in a change ofthe obligations.
Some additional risks are related to Germany only:● In Germany two defined contribution pension plans exist which are externally financed via the“Pensionskasse Degussa” (PKD) or the support fund “Unterstützungskasse Degussa” (RUK). With
respect to the required pension adjustments of pensions paid by these plans, there is a risk that theseadjustments cannot be fully borne by the PKD or RUK and therefore can result in additional unfundedpension obligations. This part of the PKD and RUK plans is therefore considered as a Defined Benefit
Plan and the risk of the additional obligation expected until end of 2023 has been included in thedefined benefit obligation and is yearly reviewed (additional obligation of € 4.8 million for PKD and€ 0.7 million for RUK at the end of 2021).
● The closed deferred compensation plan provides a guaranteed interest rate of 6% which increases therisk for a pension cost in addition to the converted salary. The plan was closed at 31 December 2013
and replaced by a plan with no signiﬁcant risk in this respect.
And some risks are related to Belgium only:● Because of the Belgian legislation applicable to 2nd pillar pension plans (so-called “Law
Vandenbroucke”), all Belgian Defined Contribution plans have to be considered under IFRS as Defined
Benefit plans. Law Vandenbroucke states that in the context of defined contribution plans, theemployer must guarantee a minimum return of 3.75% on employee contributions and 3.25% on
employer contributions. However, shortly before year-end 2015, a change in the Belgian Law wasenacted resulting in a decrease of the guaranteed return from 3.25 % to a minimum interest rate
defined based upon the Belgian 10-year interest rate but within the range 1.75% – 3.25%. The new rate
(currently 1.75%) applies for the years after 2015 on future contributions and also on the accumulated
past contributions as at 31 December 2015 if the financing organization does not guarantee a certain
result on contributions until retirement age. If the organization does guarantee such a result, the rates

Umicore Financial Report 2021

Umicore Statements Backcover

3.25/3.75% still apply on the accumulated past contributions as at 31 December 2015. Because of thisminimum guaranteed return, the employer is exposed to a financial risk: further contributions could
be required if the return on assets would not be sufficient to reach the minimum benefits to be paid.
The Group has plans that are financed through insurance contract as well as one plan financed throughan IORP. The related defined benefit obligations have been aggregated with the other obligations
for defined benefit plans. The Projected Unit Credit (PUC) methodology has been used. Total defined
benefit obligations related to those plans amounts to € 133.6 million as at the end of December 2021
and related plan assets to € 118.8 million.

54

2020

2021

Defined benefit obligations

697,222677,967

Fair value of plan assets

271,690

291,479

Funded Status

425,532

386,488

NET LIABILITY (ASSET)

425,532

386,488

Current service cost

34,591

43,641

Interest cost

6,246

5,904

Interest income on plan assets(2,349)(2,069)(920)

Thousands of Euros
Amount recognized in the balance sheet

Components of pension costs
Amounts recognized in profit and loss statement

Thousands of Euros

2020

2021

Change in benefit obligation
Benefit obligation at beginning of the year

651,685

697,222

Remeasurement of Other Long Term Benefits

277

Current service cost

34,591

43,641

Administrative expenses and taxes

51

55

Interest cost

6,246

5,904

Total pension cost recognized in P&L account38,816

46,611

270,082

299,829

28,004(48,196)

37

27

Plan Participants' Contributions

905

843

Amounts recognized in other comprehensive income

Remeasurements - changes in demographic assumptions

1,556

(831)

Cumulative remeasurements at opening

Remeasurements - changes in financial assumptions

29,185(37,337)

Remeasurements - experience adjustments

2,942

723

Benefits paid from plan/company(26,873)(30,537)

Other movements

1,775

-

Expenses paid

(1,819)(2,479)Exchange differences

(69)

4

Plan combinations
Exchange rate changes
BENEFIT OBLIGATION AT END OF THE YEAR

Thousands of Euros

157-(1,353)

818

697,222677,967

Remeasurements of the year
Minorities

Change in scope
Total recognized in the OCI at subsidiaries
Remeasurements at associates and joint ventures

25,202

27,396

325,030

282,084

Remeasurements recognised in Other comprehensive income as per Note F23(w/o Minorities)(27,632)

48,082

2,403(2,107)2021

259,952

271,690

Expected return on plan assets

2,349

2,069

Reameasurements related to Minorities (including ctd's on Minorities )Remeasurements on plan assets

5,398

11,671

Total Remeasurement shown in OCI

Employer contributions

32,47337,350.Currency translation differences as per Note F23 (w/o Minorities)

Member contributions

905

843

Benefits paid from plan/company(26,873)(30,537).Remeasurements related to equity companies

Expenses paid

(1,870)(2,534)TOTAL REMEASUREMENTS SHOWN IN NOTE F27

Fair value of plan assets at the beginning of the year

Net transfer in/(out) (including the effect of any businesscombinations/divestitures)

(76)

-

Exchange rate changes

(568)

927

271,690

291,479

FAIR VALUE OF PLAN ASSETS AT THE END OF THE YEAR

Pension plans mainly in Belgium, Korean, Liechtenstein and Japan are wholly or partly funded with assets
covering a substantial part of the obligations. All other plans have no material funding or are unfunded.

3,026
254,689

TOTAL RECOGNIZED IN THE OCI
2020

Change in plan assets

299,829

Currency translation differences as per Note F23 (w/o Minorities).Currency translation differences related to Minorities

32

32(25,198)

46,007(2,403)

2,107

5

(5)

(409)

87

(28,004)

48,196

Remeasurements (recognized in other comprehensive income)
Effect of changes in demographic assumptions

1,433

(805)

Effect of changes in financial assumptions

29,124(37,103)

Effect of experience adjustments

2,677

1,404

(Return) on plan assets (excluding interest income)(5,230)(11,692)

TOTAL REMEASUREMENTS INCLUDED IN OTHER COMPREHENSIVE INCOME

28,004(48,196)

Umicore Financial Report 2021

Umicore Statements Backcover

The interest cost and return on plan assets as well as the remeasurement impact on the non postemployment benefit plans, are recognized under the finance cost in the income statement (see note F11).
All other elements of the expense of the year are classified under the operating result in the “wages,salaries and direct social advantages”.
Remeasurements of the year recognized in other comprehensive income originate mainly from a change
in discount rates on the pension plans and differences between the expected and actual return onplan assets.

Other plan assets are predominantly invested in insurance contracts and bank term deposits. The expectedlong-term rate of return on assets assumptions is documented for the individual plans as recommended
by the local actuaries.
2021
Valuation
trend +0,25%

Valuation
trend -0,25%

640,901

687,587

13.33

14.92

648,639622,105

670,622652,617

2020

2021

Balance sheet liability (asset) as of previous year

391,734

425,529

Pension expense recognized in P&L in the financial year

38,816

46,611

Amounts recognized in SoCI

28,004(48,196)

Employer contributions via funds in the financial year

(20,633)(25,572)

Employer contributions paid directly in the financial year

(11,840)(11,771)

Sensitivity to trend rate assumptions on discount rate
Present value of defined benefit obligation

2020

2021

Weighted average duration of benefit obligation (in years)

PRINCIPAL ACTUARIAL ASSUMPTIONS

Sensitivity to trend rate assumptions on inflation rate

Weighted average assumptions to determine benefit obligations atyear end

Sensitivity to trend rate assumptions on salary increase rate

Present value of defined benefit obligation

Discount rate (%)

0.78

1.17

Rate of compensation increase (%)

2.55

2.62

Rate of price inflation (%)

1.75

1.80

Rate of pension increase (%)

1.30

1.27

Discount rate (%)

0.95

0.78

Rate of compensation increase (%)

2.60

2.55

Rate of price inflation (%)

1.78

1.75

Rate of pension increase (%)

1.30

1.30

Weighted average assumptions used to determine net cost

Present value of defined benefit obligation

Thousands of Euros
BALANCE SHEET RECONCILIATION

Amounts recognized due to plan combinations
Other

2021

Exchange rate adjustment - (gain)/loss(109)
386,489

Provisions for employee benefits in non current liabilites as per Balance Sheet

426,356

387,206

(820)

(718)

22,062

22,062

Asset employee benefit in non current asset (note F20)

Equity instruments

66,26966,269Other

93,787NET OBLIGATION ON BALANCESHEET

93,787
6,738

6,738

Assets held by insurance company

94,29080,983

Other

8,333

7,322

291,479

277,161

TOTAL PLAN ASSETS(7)-

425,529

386,488

At 31 December
Thousands of Euros
Present value of defined benefit obligation

Assumptions are recommended by the local actuaries in line with the IAS19 revised. The standard
reference for the Eurozone is iBOXX AA Index yield and similar indexes are used for the other regions.
Mortality tables used are country specific.

(3)

(785)

Cash and cash equivalents

Real estate-

425,529

Fair value of allplan assets

Debt instruments

233

BALANCE SHEET LIABILITY (ASSET) AS OF END OF THE YEAR

Fair Value of plan
assets with quoted
market pricePlan assets

55

2017

2018

2019

2020

2021

552,021549,052

651,685

697,222677,967

Fair value of plan assets

209,774

216,101

259,952

271,690

291,479

Deficit (surplus) in the plan

342,247

332,951

391,733

425,532

386,488

Experience adjustments on plan assets(5,286)

4,410(17,138)(5,398)(11,671)

Experience adjustments on plan liabilities

4,611

5,967

3,032

2,942

723

Umicore Financial Report 2021

Umicore Statements BackcoverThousands of Euros

2021

EXPECTED CASH FLOWS FOR FOLLOWING YEAR
Expected employer contributions

The stock options, which are typically vested at the time of the grant, are foreseen to be settled withtreasury shares. Options which have not been exercised before the expiry date elapse automatically.

36,912

Expected total benefit payments

2020

Year 130,310Year 248,062

Year 320,078Year 431,508Year 528,122

Next 5 years

119,823F28 Stock option plans granted by the company

Plan
ISOP 2015

Expiry date
09/02/2022

56

Exercise priceEUR (the exercise
price may be higher Number of options
Exercise in certain countries) still to be exercised
all working days of Euronext Brussels

17.29

39,000

18.90

2,500

19.50

3,000
44,500248,750

Number ofshare options

2021
Weighted
Weighted
average
Number of
average
exercise price share options exercise price

DETAILS OF THE SHARE OPTIONS OUTSTANDING DURING
THE YEAR
Outstanding at the beginning of the year

5,641,250

27.42

5,785,190

32.00

Granted during the year

1,168,375

42.05

1,108,500

47.08

Exercised during the year

1,024,435

18.25

1,692,190

22.72

OUTSTANDING AT THE END OF THE YEAR

5,785,190

32.00

5,201,500

38.23

Exercisable at the end of the year

5,785,190

32.00

5,201,500

38.23

The options outstanding at the end of the year have a weighted average contractual life until January 2026.
The details concerning the calculation of the fair value of the options granted are detailed under note F10
on Payroll and related Benefits.

F29 Environmental provisions

ISOP 201604/02/2023

all working days of Euronext Brussels

16.63

ISOP 201713/02/2024

all working days of Euronext Brussels

25.50

413,500

27.04

23,750Thousands of Euros

437,250

At the end of previous year

248,750ISOP 201808/02/2025

all working days of Euronext Brussels

40.90

973,125

ISOP 201910/02/2026

all working days of Euronext Brussels

34.08

1,216,000

36.78

5,000

973,125

1,221,000
ISOP 2020

09/02/2027

all working days of Euronext Brussels

42.05

1,168,375
1,168,375

ISOP 2021

10/02/2028

all working days of Euronext Brussels

47.08

1,108,500
1,108,500

TOTAL

5,201,500

ISOP refers to “Incentive Stock Option Plan” (worldwide plan for senior managers and above).

. Increase (included in "Other
operating expenses"). Reversal (included in "Other
operating expenses")

Provisions for soil clean­
Other
up & site rehabilitation environmental provisions

Total

108,238

13,136

121,374

58,98914,37773,367

(471)

(159)

(630)

. Use (included in "Other operating expenses")(57,081)(6,519)(63,600). Discounting (included in "Finance cost -Net")

(152)

-

(152)

. Translation differences

256

-

256

109,780

20,836130,615

106,247

11,146

117,393

3,533

9,689

13,222

AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONSOf which - Non Current
Of which - Current

Provisions for environmental legal and constructive obligations are recognized and measured by reference
to an estimate of the probability of future cash outﬂows as well as to historical data based on the facts

Umicore Financial Report 2021

Umicore Statements Backcoverand circumstances known at the end of the reporting period. The actual liability may differ from theamounts recognized.
Provisions increased overall by € 9.2 million, with additional provisions which are higher than the uses
and reversals of existing provisions.
The new provisions for soil and groundwater remediation are mainly related to new provisions taken
in Belgium at the Hoboken and Olen sites. In Hoboken, additional provisions for the creation of a green
zone neighboring the Hoboken plant have been taken for € 45.6 million. This reflects the success of thevoluntary offer to purchase neighboring houses. The creation of the green zone is a key building block of
the site’s plan to further reduce the impact on its neighbors. Taking into account the use of the provision
over the period (€ 51.2 million), the total provision for the creation of the green zone at December 31
amounted to € 44.4 million.
Early 2020, the Federal Agency for Nuclear Control issued guiding principles for the permanent
remediation and storage of the legacy radioactive material related to Umicore’s Olen site in Belgium.
Joint working groups have been established, including governmental agencies such as NIRAS/ONDRAF,
OVAM, FANC and Umicore to elaborate a roadmap describing the different steps that need to be taken
to reach a permanent storage solution. Going forward, the joint working groups will provide updates ofthe estimated future remediation and storage costs and the dedicated existing environmental provisions.
Developing and implementing this detailed roadmap is currently expected to take several years. Umicore
will in the meantime continue the monitoring works to guarantee that no risks are emanating from thoseremnants, neither for the workers on site, nor for the surrounding population.
The movements of the other environmental provisions are mainly related to the need for and adjustmentof CO2 emission rights in Belgium.
Management expects the most signiﬁcant cash outﬂows on these projects for non-current elements totake place within 10 years.

57

F30 Provisions for other liabilities and charges

Thousands of Euros

Provisions forreorganisation& restructuring

Provisions for Provisions for
Provisions foronerous other liabilities
litigation contracts IFRS 9
and charges

Total

At the end of the previous year

40,856

2,686

19,96357,454

120,958. Increase (included in "Other
operating expenses")

8,147

84

-

47,39655,626. Reversal (included in "Other
operating expenses")(1,530)-(20,267)(247)(22,045). Use (included in "Other
operating expenses")(10,451)(228)-(18,506)(29,185). Translation differences

912

3

305

765

1,984

. Transfers

(2)

(18)

-

6

(14)

. Other movements

823

-

-

-

823

AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONS

38,754

2,527-

86,869128,148

Of which - Non Current

27,226

801-

70,081

98,108

Of which - Current

11,5291,725-

16,79030,044

Provisions for reorganization and restructuring and other liabilities and charges are recognized andmeasured by reference to an estimate of the probability of future outﬂow of cash as well as to historical
data based on the facts and circumstances known at the end of the reporting period. The actual liability
may differ from the amounts recognized.
Provisions increased overall by € 7.2 million.
Additional provisions for reorganization and restructuring have been mainly taken for the restructuringinitiatives linked to the closure of Automotive catalysts's heavy duty diesel operation in Frederikssund(Denmark) and in Cobalt & Specialty Materials in Belgium. The uses of provision for reorganization
and restructuring mainly relate to the execution of the previously announced restructurings in Cobalt &Specialty Materials in Belgium and in the USA and in Catalysis in Denmark and in the USA.
The provisions for litigation are not including the tax provisions related to IFRIC 23 as those are booked
under the line Income tax payable.
The provisions for onerous contracts related to IFRS 9 were linked to the introduction of IFRS 9 for fair value
hedging. Those provisions were taken when IFRS 9 hedge accounting could not be applied or obtained,
Umicore previously offset under IAS 37 principles any material positive mark-to-markets with provisions
for onerous contracts and reclassified the negative mark-to-markets under the provisions for onerous
contracts. In 2021, Umicore has decided to directly reverse the material positive mark-to-markets and toUmicore Financial Report 2021

Umicore Statements Backcoverabandon the provisions for onerous contracts logic for IFRS 9, resulting in a reversal of last year taken
provision. From the provision of € 20.0 million for 2020, € 10.0 million could be reversed in 2021 as hedge
accounting was obtained, as explained in note 2.21.1.
Additional other provisions for liabilities and charges include other onerous contracts provisions of€ 22.0 million and provisions for warranty and quality recall risks of € 22.7 million that are mainly linked torisks related to automotive end market applications in both Catalysis and Energy & Surface Technologies(the latter referring to the dedicated provisioning model for battery materials introduced in 2018). The useof provisions related to other onerous contract provisions amounts to € 15.4 million in 2021.
No reliable estimation could be made regarding the expected timing of cash outflows related to thenon-current part of the provisions for other liabilities and charges.

F31 Capital employed
Thousands of Euros

Notes

Intangible assets

F14,F15

346,888

344,025

339,849F16

2,163,661

2,236,527

2,351,134

Investments accounted for under the equity method

F17

139,839150,052

155,140

Financial assets at FV through OCI

F18

8,352

15,125

14,120Inventories

F19

2,718,092

3,081,161

2,869,071

Non current receivable (excluding assets employee benefits)

F20

Property, plant and equipment

Adjusted current accounts receivable
Income tax receivable
Assets included in capital employedNon-current trade and other payables

F25

Adjusted current accounts payable
Translation reserves

31/12/2020

30/06/2021

31/12/2021

10,945

12,378

19,954

1,611,461

2,013,295

1,750,174

39,55344,147

46,762

7,038,790

7,896,710

7,546,203

23,50532,77447,3602,360,975

3,149,457

2,783,459

F23(202,148)(149,920)(117,250)

Non-current provisions

F29,F30

182,040

221,178

215,502

Current provisions

F29,F30

60,29657,85743,266

160,734

236,935

197,488

Liabilities included in capital employed

2,585,401

3,548,280

3,169,825

Capital employed

4,453,389

4,348,430

4,376,378

3,191

3,012

517

4,456,580

4,351,443

4,376,895

Income tax payable

Eliminations
CAPITAL EMPLOYED AS PUBLISHED
Average Capital Employed in half year preceding closing date

4,454,596

4,364,169

Average Capital Employed in year preceding closing date

4,450,948

4,384,090

536,361

971,377

12.05%

22.16%

Adjusted EBIT in year preceding closing date
ROCE in year preceding closing date

F958

The adjusted current account receivables included in the “Capital Employed” do not take into account themargin calls (€ 1.4 million at the end of 2021) and the gains booked on the mark-to-market value ofstrategic hedging instruments (€ 80.5 million in 2021). The adjusted current account payables includedin the “Capital Employed” do not take into account the losses booked on the mark-to-market value ofstrategic hedging instruments (€ 24.5 million at the end of 2021).
Average capital employed for the half years is calculated as the average of the capital employed at the endof the period and at the end of the preceding period. Average capital employed for the year is calculated
as the average of the capital employed of both half years.

Umicore Financial Report 2021

Umicore Statements Backcover59

F32 Financial instruments by category
AS AT THE END OF PREVIOUS YEAR
Carrying amount
Fair value

Held for trading economic hedging

Fair value
hedge accounting

Cash Flowhedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI

8,352

-

-

-

-

8,352

8,352

-

-

-

-

8,352

3,332

-

-

-

3,332

-

3,332

-

-

-

3,332

-

1,688,931

1,931

21,51145,091

1,620,398-

Cash guarantees and deposits

8,370

-

-

-

8,370

-

Other receivables maturing in more than 1 year

2,574

-

-

-

2,574

-

820

-

-

-

820

-

Thousands of EurosLevel

ASSETS
Financial assets at fair value through Other Comprehensive Income
Financial assets at fair value through Other Comprehensive Income - Shares

1

Loans granted
Loans to associates and non consolidated affiliates
Trade and other receivables
Non-current

Assets employee benefits
Current
Trade receivables (at cost)

1,366,686---

1,366,686-

Trade receivables (write-down)(22,319)---(22,319)-

Other receivables (at cost)

177,008---

177,008-

Other receivables (write-down)

(207)

-

-

-

(207)

-

Interest receivable

495

-

-

-

495

-

Fair value of financial instruments held for cash-flow hedging

245,091--45,091--

Fair value receivable - financial instruments related to FV hedging

223,442

1,931

21,511---

86,973---

86,973-

1,010,306---

1,010,306-

373,904---

373,904

-

5

-

-

-

5

-

Cash-in-hand and bank current accounts

636,397---

636,397-

TOTAL OF FINANCIAL INSTRUMENTS (ASSETS)

2,710,921

1,931

21,51145,091

2,634,036

8,352

Deferred charges and accrued income
Cash and cash equivalents
Short-term investments: bank term deposits
Short-term investments: term deposits (other)Umicore Financial Report 2021

Umicore Statements Backcover60

Carrying amount
Fair value

Held for trading economic hedging

Fair value
hedge accounting

Cash Flowhedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI

2,495,431---

2,424,331-

Bank loans

1,276,100---

1,205,000-

Lease liability

52,865---52,865-

Other loans

447,289---

447,289-

576,056---

576,056

-

8,678

-

-

-

8,678

-

134,282---

134,282

-

162

-

-

-

162

-

2,442,433

19,58918,70857,9572,346,180-

Other long term debts

5,682

-

-

-

5,682

-

Investments grants and deferred income from grants

17,823---

17,823-Thousands of Euros

Level

LIABILITIESFinancial debt
Non-current

Current
Short term bank loans
Bank overdrafts
Short term loan: commercial paper
Other loans
Trade and other payables
Non-current

Current
Trade payables

1,896,099---

1,896,099-

Advances received on contracts in progress

32,180---32,180-Tax - other than income tax - payable

38,317---38,317-

Payroll and related charges

135,835---

135,835-

Other amounts payable

39,733---39,733-

Dividends payable

11,618---

11,618-

Accrued interest payable

9,109

-

-

-

9,109

-

Fair value financial instrument held for cash flow hedging

257,957--

57,957--

Fair value payable - financial instruments related to FV hedging

238,296

19,58918,708---

Accrued charges and deferred income

159,784---

159,784-

TOTAL OF FINANCIAL INSTRUMENTS (LIABILITIES)

4,937,864

19,58918,70857,9574,770,511-

Umicore Financial Report 2021

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61

AS AT THE END OF THE FINANCIAL YEAR
Carrying amount
Fair value

Held for trading economic hedging

Fair value
hedge accounting

Cash Flowhedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI

14,120----14,12014,120----14,120

2,777

-

-

-

2,777

-

2,777

-

-

-

2,777

-

1,852,705

3,977

9,868

80,452

1,758,408-

Cash guarantees and deposits

9,737

-

-

-

9,737

-

Other receivables maturing in more than 1 year

10,217---

10,217

-

718

-

-

-

718

-

Thousands of EurosLevel

ASSETS
Financial assets at fair value through Other Comprehensive Income
Financial assets at fair value through Other Comprehensive Income - Shares

1

Loans granted
Loans to associates and non consolidated affiliates
Trade and other receivables
Non-current

Assets employee benefits
Current
Trade receivables (at cost)

1,394,540---

1,394,540-

Trade receivables (write-down)(18,771)---(18,771)-

Other receivables (at cost)

243,746---

243,746-

Other receivables (write-down)

(207)

-

-

-

(207)

-

Interest receivable

1,439

-

-

-

1,439

-

Fair value of financial instruments held for cash-flow hedging

280,452--80,452--

Fair value receivable - financial instruments related to FV hedging

213,845

3,977

9,868

-

-

-

116,989---

116,989-

1,194,436---

1,194,436-

272,965---

272,965

-

43

-

-

-

43

-

Cash-in-hand and bank current accounts

921,428---

921,428-

TOTAL OF FINANCIAL INSTRUMENTS (ASSETS)

3,064,038

3,977

9,868

80,452

2,955,621

14,120

Deferred charges and accrued income
Cash and cash equivalents
Short-term investments: bank term deposits
Short-term investments: term deposits (other)Umicore Financial Report 2021

Umicore Statements Backcover

62

Carrying amount
Fair value

Held for trading economic hedging

Fair value
hedge accounting

Cash Flowhedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI

2,182,852---

2,154,884-

Bank loans

1,232,968---

1,205,000-

Lease liability

62,892---62,892-Other loans

456,145---456,145-

Short term bank loans

374,720---374,720-

Bank overdrafts

28,122---

28,122-

Short term loan: commercial paper

8,005

-

-

-

8,005

-

Other loans

20,001---

20,001-

2,855,327

433

31,87424,504

2,798,516-

Other long term debts

6,540

-

-

-

6,540

-

Investments grants and deferred income from grants

40,821---40,821-Thousands of Euros

Level

LIABILITIESFinancial debt
Non-current

Current

Trade and other payables
Non-current

Current
Trade payables

2,196,225---

2,196,225-

Advances received on contracts in progress

29,851---

29,851-

Tax - other than income tax - payable

32,885---32,885-

Payroll and related charges

168,014---

168,014-

Other amounts payable

67,708---67,708-Dividends payable

11,612---

11,612-

Accrued interest payable

10,326---

10,326-

Fair value financial instrument held for cash flow hedging

224,504--24,504--

Fair value payable - financial instruments related to FV hedging

232,307433

31,874---

Accrued charges and deferred income

234,534---

234,534-

TOTAL OF FINANCIAL INSTRUMENTS (LIABILITIES)

5,038,179

433

31,87424,504

4,953,400-

Loans and debt have been issued at market rates which would not create any major differences with effective interest expenses. All categories of financial instruments of Umicore are at fair value except the
non-current bank loans for which the carrying amounts differ from the fair value (see note F24). The fair value of financial instruments traded in active markets is based on quoted market prices at the end of thereporting period. The fair value of financial instruments that are not traded in an active market is determined using valuation techniques, mainly discounted cash-flow, using market assumptions prevailing at the endof the reporting period. In particular, the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows. The fair value of forward foreign exchange, metal and energy contracts
is determined using quoted forward exchange, metal and energy rates at the end of the reporting period. The fair value of quoted financial assets held by the Group is their quoted market price at the end of thereporting period. The fair value of financial liabilities is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.

Umicore Financial Report 2021

Umicore Statements Backcover

32.1 Fair value hierarchy

The Group adopted the amendment to IFRS 7 for financial instruments which are measured in the balance
sheet at fair value, with effect from January 2009. This amendment requires disclosures of fair value
measurements by level, based on the following fair value measurement hierarchy:● Level 1: fair value based on quoted prices in active markets for identical assets or liabilities.
● Level 2: fair value based on inputs other than quoted prices that are observable for the asset or liability,
either directly or indirectly.
● Level 3: fair value for the asset or liability valuation are based on unobservable inputs.
In the Group, the fair values on financial assets at fair value through OCI are measured as level 1.
All the metal, energy and foreign currency derivatives are measured as level 2.
During the year, there were no transfer between levels in the fair value hierarchy.

32.2 Sensitivity analysis on financial instruments

Umicore is sensitive to commodity prices, foreign currency and interest rate risk on its financial
instruments. The fair values of the financial instruments reflect the difference between the contract rates
and the closing rates. The sensitivity calculations are performed by stressing the closing rates (being
commodity prices, currency exchange rates, electricity and gas prices and interest rates) with 10% up anddown. The market values in the stressed scenario’s are then compared to the original market values.

32.2.1 Commodity prices

The fair value on ﬁnancial instruments related to cash ﬂow hedging sales would have been € 14.4 million
lower/higher if the metal prices would strengthen/weaken by 10%.
The fair value on ﬁnancial instruments related to cash ﬂow hedging purchases would have been
€ 6.5 million higher/lower if the energy prices would strengthen/weaken by 10%. The fair value on
ﬁnancial instruments related to cash ﬂow hedging purchases would have been € 4.7 million higher/lower
if the metal prices would strengthen/weaken by 10%.
The fair value on other commodity sales hedge compliant ﬁnancial instruments would have been€ 26.1 million lower/higher and the fair value on other commodity purchases hedge compliant ﬁnancial
instruments would have been € 8.7 million higher/lower if the metal prices would strengthen/weakenby 10%.
The fair value on other commodity sales ﬁnancial instruments according to economic logic would havebeen € 5.7 million lower/higher and the fair value on other commodity purchases ﬁnancial instruments

63

according to economic logic would have been € 5.9 million higher/lower if the metal prices would
strengthen/weaken by 10%.

32.2.2 Foreign currency

The fair value of forward currency contracts related to cash ﬂow hedging would have been € 28.7 million
higher if the EUR would strengthen against USD by 10% and would have been € 35.1 million lower if the
EUR would weaken against USD by 10%.
The fair value of forward currency contracts related to cash ﬂow hedging would have been € 10.6 million
lower if the USD would strengthen against KRW by 10% and would have been € 10.6 million higher if the
USD would weaken against KRW by 10%.
The fair value of forward currency contracts related to cash flow hedging would have been € 5.7 million
higher if the EUR would strengthen against CNY by 10% and would have been € 6.9 million lower if
EUR would weaken against CNY by 10%.
The fair value of forward currency contracts related to cash flow hedging would have been € 9.8 million
lower if the USD would strengthen against CNY by 10% and would have been € 5.7 million higher if USD
would weaken against CNY by 10%.
The fair value of forward currency contracts related to cash flow hedging would have been € 6.4 million
lower if the USD would strengthen against BRL by 10% and would have been € 6.4 million higher if USD
would weaken against BRL by 10%.
The fair value of forward currency contracts related to cash flow hedging would have been € 2.5 million
lower if the USD would strengthen against CAD by 10% and would have been € 3.1 million higher if USD
would weaken against CAD by 10%.
The fair value of forward currency contracts related to cash flow hedging would have been € 2.6 million
lower if the EUR would strengthen against PLN by 10% and would have been € 3.2 million higher if
EUR would weaken against PLN by 10%.
The fair value of other forward currency contracts sold would have been € 40.5 million higher if the
EUR would strengthen against USD by 10% and would have been € 49.5 million lower if the EUR would
weaken against USD by 10%.
The fair value of other forward currency contracts bought would have been € 9.5 million lower if the
EUR would strengthen against USD by 10% and would have been € 11.7 million higher if the EUR would
weaken against USD by 10%.

Umicore Financial Report 2021

Umicore Statements Backcover64

The fair value of net position of current assets and liabilities exposed to USD would have been € 5.5 million
lower if the EUR would strengthen against USD by 10% and would have been € 6.8 million higher if the
EUR would weaken against USD by 10%.

The fair value of net position of current assets and liabilities exposed to KRW would have been € 9.9 million
lower if the EUR would strengthen against KRW by 10% and would have been € 12.1 million higher if the
EUR would weaken against KRW by 10%.

The fair value of other forward currency contracts sold would have been € 13.0 million higher if the
EUR would strengthen against CNY by 10% and would have been € 15.8 million lower if the EUR would
weaken against CNY by 10%.

32.2.3 Interest rate

The fair value of net position of current assets and liabilities exposed to CNY would have been
€ 33.2 million lower if the EUR would strengthen against CNY by 10% and would have been € 40.6 million
higher if the EUR would weaken against CNY by 10%.

F33 Fair value of financial instruments (derivatives)

The fair value of other forward currency contracts sold would have been € 17.3 million higher if the CNY
would strengthen against USD by 10% and would have been € 18.2 million lower if the CNY would weaken
against USD by 10%.
The fair value of other forward currency contracts bought would have been € 4.3 million lower if the
EUR would strengthen against PLN by 10% and would have been € 5.2 million higher if the EUR would
weaken against PLN by 10%.
The fair value of net position of current assets and liabilities exposed to PLN would have been€ 12.2 million higher if the EUR would strengthen against PLN by 10% and would have been € 14.9 million
lower if the EUR would weaken against PLN by 10%.
The fair value of other forward currency contracts sold would have been € 8.1 million higher if the
EUR would strengthen against HKD by 10% and would have been € 9.9 million lower if the EUR would
weaken against HKD by 10%.
The fair value of net position of current assets and liabilities exposed to HKD would have been € 8.1 million
lower if the EUR would strengthen against HKD by 10% and would have been € 9.9 million higher if the
EUR would weaken against HKD by 10%.
The fair value of other forward currency contracts sold would have been € 5.5 million higher if the KRW
would strengthen against USD by 10% and would have been € 5.5 million lower if the KRW would weaken
against USD by 10%.
The fair value of other forward currency contracts bought would have been € 4.2 million higher if the KRW
would strengthen against USD by 10% and would have been € 4.2 million lower if the KRW would weaken
against USD by 10%.

The fair value of long term loans would have been € 1 million lower if interest rate levels would increaseby 10% and € 1 million higher if interest rate levels would decrease by 10%.

Umicore hedges its structural and transactional commodity (metal and energy), currency and interest raterisks using respectively commodity derivatives (mainly quoted on the London Metal Exchange), currency
derivatives and Interest Rate Swaps with reputable brokers and banks.

33.1 Financial instruments related to cash-flow hedging
Notional or Contractual amountThousands of Euros

Fair value

Change in fairvalue

31/12/2020

31/12/2021

31/12/2020

31/12/2021

31/12/2021

Forward commodities sales

131,855

156,750(49,786)

11,241

61,027

Forward commodities purchases(86,877)(52,394)

22,09959,564

37,465

Forward currency contracts sales

641,320

681,471

12,606(16,315)(28,921)

Forward currency contracts purchases(79,688)(57,804)

2,986

4,621

1,635

Forward IRS contracts

40,000396,600(771)(3,164)(2,393)
68,813

Total fair value impact subsidiaries(12,866)

55,947

recognized under trade and other receivables

45,09180,452

recognized under trade and other payables(57,957)(24,504)

Total fair value impact associates andjoint ventures
Total

1,114

(1,953)(11,752)

53,995The principles and documentation on the hedged risks as well as the timing related to the Group’s cash
flow hedging operations are included in note F3 Financial risk management.
The fair values of the effective hedging instruments are in the first instance recognized in the fairvalue reserves recorded in equity and are derecognized when the underlying forecasted or committed
transactions occur (see note F23).
The forward commodities sales contracts are set up to hedge primarily the following commodities: gold,
silver, palladium, platinum nickel, lead and copper. The forward commodity purchase contracts are set

Umicore Financial Report 2021

Umicore Statements Backcover

up to hedge primarily the electricity, gas and fuel oil price risks and the commodity nickel. The forward
currency contracts are set up to hedge USD towards EUR, KRW, CNY, BRL and CAD as well as EUR towards
PLN and CNY. The terms and conditions of the forward contracts are common market conditions.
Umicore did not face any ineffectiveness on cash flow hedging in P&L in 2020 and 2021.
The fair values of the hedging instruments reflect the difference between the contract rates and theclosing rates. The total fair value of financial instruments for cash-flow hedging has a positive impact on
the fair value reserves in equity at end of 2021. This positive impact is most significant for commodities
purchased, while forward currency contracts offset part of this positive impact. All of the hedging
instruments have their maturity within the next three years.

33.2 Financial instruments related to fair value hedging
Notional or Contractual amountThousands of Euros
Forward commodities sales (IFRS 9hedge accounting)
Forward commodities sales(economic hedging)
Forward commodities purchases (IFRS 9hedge accounting)Fair value

Change in fairvalue

31/12/2020

31/12/2021

31/12/2020

31/12/2021

31/12/2021-

259,702-(14,858)(14,858)

303,729

59,432(19,549)

1,984

21,533-(82,064)

-

4,934

4,934

Forward commodities purchases(economic hedging)(33,687)(58,194)

1,891

1,560

(331)

Forward currency contracts sales

1,532,188

1,216,640

5,342(12,232)(17,575)

Forward currency contracts purchases(536,554)(494,154)(2,539)

150

2,689

(14,854)(18,462)(3,609)recognized under trade and other receivables(IFRS 9- hedge accounting)

21,511

9,868

recognized under trade and other receivables(economic hedging)

1,931

3,977

recognized under trade and other payables(IFRS 9- hedge accounting)(18,708)(31,875)

Total fair value impact subsidiaries

recognized under trade and other payables(economic hedging)(19,589)

(433)

Total

(14,854)(18,462)

65

The principles and documentation related to the Group’s transactional hedging are included in note
F3 “Financial Risk Management”. Under Umicore’s economical hedging policy, financial instruments for
currency and commodity hedging are used to protect the fair value of underlying hedged items (assets,
liabilities and firm commitments) and are recognized at fair value at closing date. Umicore obtained forthe fair value hedging of its currency risk exposures hedge accounting under the criteria of IFRS 9 (seenote F2.21.1).
For the fair value hedging of its commodity risk exposures, Umicore did not obtain hedge accounting
under the criteria of IFRS 9 for some metals. Hedge accounting principles are accepted for copper, leadand nickel. In the absence of hedge accounting, the financial instruments are measured at fair value as
if they were held for trading. However, such instruments are being used to cover existing transactions,considered as hedged items under Umicore transactional hedging risk policy (primarily inventory andfirm commitments) and so these commodity hedging instruments held for trading are not speculativein nature.
The fair values are immediately recognized in the income statement under Other Operating income for thecommodity instruments and the Net Finance cost for the currency instruments. The adjustments for thehedged items as well as the hedging instruments are recorded in the following caption of the statementof financial position: "trade and other receivables" and "trade and other payables".
The fair values of the hedging instruments reflect the difference between the contract rates and themarket closing rates. In view of the intent of the Group policy on transactional hedging, the net impact
on operating income of fair value movements on both hedging instruments and hedged items is neutral.
The booking of the fair value movements on financial instruments under fair value hedging had a negative
impact on the operating income at the end of 2021. Most of the fair values of the hedging instruments are
not significant as the closing rates do not materially differ from the strike rates. Only for the commodities
sold the fair values are significant. These concern metal hedging instruments of which most have theirmaturity within the next year. The forward commodities sales contracts are set up to hedge primarily thefollowing commodities: nickel, lead and copper. The forward commodity purchase contracts are set up to
hedge primarily nickel, lead and copper. The forward currency contracts are set up to hedge mainly USD
towards EUR, KRW, CNY, BRL and CAD as well as EUR towards CNY, HKD, KRW, JPY, THB, DKK and PLN.
The forward contracts following the economic logic are contracts to hedge following commodities: silver,
gold, platinum and palladium.

Umicore Financial Report 2021

Umicore Statements Backcover

66

Fair value hedged items and hedging instruments compliant with IFRS 9 hedge accounting
31/12/2020
Thousands of Euros
Transactional metal hedges

31/12/2021

Fair Value Hedged Items

Fair Value
Hedging Instruments

Fair Value
Hedged Items

Fair Value
Hedging Instruments

Change in Fair Value
Hedged Items

Change in Fair Value
Hedging Instruments

Ineffectiveness

14,499(5,614)18,905(12,031)

4,406(6,417)(2,011)

The main source of hedge ineffectiveness on the fair value hedging originates from forward curve impacts on the base metals, in particular the negative impact from backwardation curve on copper and nickel. With
respect to the fair value currency hedges, the hedged items are mirroring the hedging instruments and are included in various sections of the balance sheet. The total fair value on these transactional currency hedges
amounted to a loss of € 12.1 million. The ineffectiveness on currency hedges is immaterial.

AS AT THE END OF PREVIOUS YEAR
Earliest contractual maturity (undiscounted) - notional amounts
Thousands of Euros< 1 Month

1 to 3 Months

3 Months to 1Year

1 to 5 Years

Earliest contractual maturity (undiscounted) - fair value
Total< 1 Month

1 to 3 Months

3 Months to 1Year

1 to 5 Years

Total

FINANCIAL INSTRUMENTS ASSETS (FAIR VALUE)
Commodity risk
Total forward sales (CFH)

-

249

661

743

1,653

-

6

7

(4)

9

Total forward purchases (CFH)

2,719

5,547

35,851

42,76086,877

1,007

2,081

10,155

8,855

22,099Total forward purchases (FV economic hedging)

15,741

14,752--30,493

1,151

780

-

-

1,931

Forward currency contracts sales (CFH)

32,26955,116260,213204,150

551,748

1,452

2,436

11,856

4,254

19,997

Forward currency contracts purchases (CFH)

3,336

6,807

28,82433,226

72,194

103

210

1,042

1,632

2,986

Forward currency contracts sales (FV - IFRS 9 Hedge Accounting)594,604

522,845

173,820-

1,291,269

6,530

5,360

5,008

-

16,897

Forward currency contracts purchases (FV - IFRS 9 Hedge Accounting)

98,242

10,145

1,786

630

110,803

4,478

124

4

8

4,614

-

-

-

40,00040,000

-

-

-

(771)

(771)

FX Risk

FINANCIAL INSTRUMENTS LIABILITIES (FAIR VALUE)
Interest Rate Risk
Interest rate swaps
Commodity risk
Total forward sales (CFH)

288

15,24746,86767,800130,202(13)(8,268)(24,383)(17,131)(49,795)

Total forward sales (FV economic hedging)

44,004

162,083

97,642-

303,729(6,675)(11,827)(1,047)-(19,549)

Total forward purchases (FV economic hedging)

3,195

-

-

-

3,195

(40)

-

-

-

(40)

FX Risk
Forward currency contracts sales (CFH)

3,148

8,156

34,11239,75085,167

(458)

(927)

(4,381)(1,626)(7,391)

Forward currency contracts sales (FV - IFRS 9 Hedge Accounting)

92,962

56,711

91,247-240,920(7,111)(3,228)(1,216)-(11,555)

Forward currency contracts purchases (FV - IFRS 9 Hedge Accounting)

211,408

144,148

51,452

18,743425,751(2,293)(2,847)(1,628)(385)(7,153)

Umicore Financial Report 2021

Umicore Statements Backcover67

AS AT THE END OF THE FINANCIAL YEAR
Earliest contractual maturity (undiscounted) - notional amounts

Earliest contractual maturity (undiscounted) - fair value< 1 Month

1 to 3 Months

3 Months to 1Year

1 to 5 Years

Total< 1 Month

1 to 3 Months

3 Months to 1Year

1 to 5 Years

Total

-

-

-

121,600

121,600

-

-

-

47

47

Total forward sales (CFH)

10,14033,66643,23155,937

142,974

191

(254)

(509)

12,444

11,872

Total forward purchases (CFH)

2,475

4,952

32,113

12,85452,394

1,515

3,006

43,242

11,80159,564

Total forward purchases (FV - IFRS 9 Hedge Accounting)

25,92930,27325,862-

82,064

1,445

1,528

1,961

-

4,934

-

43,666

2,592-

46,258

-

2,224

193

-

2,417

14,93240,8852,377-

58,194

497

1,041

21

-

1,560

Forward currency contracts sales (CFH)

32,617

9,338

49,35923,610114,924

963

501

2,865

18

4,348

Forward currency contracts purchases (CFH)

2,475

4,952

34,31916,05857,804

337

680

3,287

317

4,621

Forward currency contracts sales (FV - IFRS 9 Hedge Accounting)

81,14940,90925,430-147,488

755

306

256

-

1,318

Forward currency contracts purchases (FV - IFRS 9 Hedge Accounting)

121,549

78,97247,854385

248,759

1,419

394

1,801

1

3,616

-

-

-

275,000

275,000---(3,211)(3,211)Thousands of Euros
Financial Instruments Assets
Interest Rate Risk
(Cross-currency) Interest rate swaps
Commodity risk

Total forward sales (FV economic hedging)Total forward purchases (FV economic hedging)
FX Risk

Financial Instruments Liabilities
Interest Rate Risk
(Cross-currency) Interest rate swaps
Commodity risk
Total forward sales (CFH)
Total forward sales (FV - IFRS 9 Hedge Accounting)Total forward sales (FV economic hedging)

305

1,870

6,514

5,087

13,776

(55)

(87)

(337)

(152)

(631)

65,774

94,18058,76440,983259,702(2,455)(3,406)(5,197)(3,801)(14,858)--

13,174-

13,174

-

-

(433)

-

(433)

FX Risk
Forward currency contracts sales (CFH)

41,50944,982

256,654

223,401

566,547(1,894)(1,744)(10,605)(6,420)(20,663)

Forward currency contracts sales (FV - IFRS 9 Hedge Accounting)

486,931351,714

192,287

38,2201,069,152(5,800)(6,746)(1,148)144(13,550)

Forward currency contracts purchases (FV - IFRS 9 Hedge Accounting)

76,362

115,950

53,083-245,394(720)(2,398)(348)-(3,466)

Umicore Financial Report 2021

Umicore Statements Backcover68(*) Non-cash items are mainly linked to mark to market of inventories and commitments, strategic andtransactional hedging and inventories, impairments in inventories and bad debt provisions.

F34 Notes to the cash flow statement34.1 Definitions

The cash flow statement identifies operating, investing and financing activities for the period.

(**) Item disclosed elsewhere are mainly due to changes in interest, dividend and tax receivable andpayable and government grants.

Umicore uses the indirect method for the operating cash flows. The net profit and loss is adjusted for:● the effects of non-cash transactions such as provisions, impairment losses, mark to market, etc., andthe variance in operating capital requirements.
● items of income or expense associated with investing or financing cash flows.

Thousands of Euros
At the end of previous year
Cash flow of the period
AT THE END OF THE FINANCIAL YEAR

Thousands of Euros

2020

2021

Depreciations

267,941

279,526(Reversal) Impairment charges

87,54348,504464

19,764

Adjustments for non cash transactions

Mark to market of inventories and commitments
Exchange difference on long-term loans(4,169)4,878

Inventories and bad debt provisions

7,012

10,747

Depreciation on government grants
Share-based payments
Change in provisions

(199)

(401)

10,10814,25580,323

22,662449,023

399,936

Tax charge of the period

59,131

179,043

Interest (income) charges

57,91051,498(Gain) loss on disposal of fixed assets(760)(1,759)Dividend income

(230)

(210)

116,051

228,573

Inventories(255,762)(150,979)

Trade and other receivables(237,694)(171,084)

Trade and other payables

531,216

449,647

As in the consolidated balance sheet

37,760127,584

Non-cash items (*)

17,74235,113

Items disclosed elsewhere (**)

(37,822)(52,810)Impact of business combination(3,136)-

Total
Adjustments for items to disclose separately or under investing andfinancing cash flows

Total
Change in working capital requirement analysis

Currency translation differences(118,300)

57,269As in the consolidated cash flow statement(103,756)

167,154

Net cash andcash equivalent

Loans (w/obank overdrafts)

Net financial debt

1,001,629

2,415,654

1,414,025

164,686(288,892)(453,578)

1,166,315

2,126,762

960,447

34.2 Net cash flow generated by operating activities

Operating cash ﬂow after tax from continuing operations is € 1,259 million. The net working capitalrequirements for continuing operations decreased with € 167.2 million in 2021 compared to 2020. This isa further reduction of € 137 million compared to end of June 2021 which benefited from some temporary
cut-off effects. Working capital came down in all business groups, but most so in Catalysis where it reflects
lower precious metal prices and softer volumes in the second half. At current metal prices, working capitalin 2022 is expected to increase from the levels of end of 2021.

34.3 Net cash flow used in investing activities

Net cash used in investing activities for continuing operations increased by € 42.0 million in 2021. Capital
expenditure for continuing operations reached € 388.6 million (compared to € 403.2 million in 2020) if
capitalized R&D costs are excluded as per Umicore’s deﬁnition of capital expenditures (refer to Glossary).
Energy & Surface Technologies accounted for close to 60 % of the Group's capital expenditures, driven by
Rechargeable Battery Materials’ European expansion investments. This implies a temporary slow-downin Energy & Surface Technologies’ capital expenditures compared to 2020 but is expected to result insome capital expenditures spill-over effect into 2022. In Catalysis and Recycling, capital expenditures
only slightly increased compared to the low spending levels of 2020. In Catalysis, Automotive Catalysts
continued to focus on production footprint optimization investments and targeted capacity expansions.
In Recycling, the capital expenditures' increase was earmarked for environmental and safety-related
investments in Precious Metals Refining. Capitalized development expenses amounted to € 27.8 million,
slightly down versus 2020.
The acquisition of the remaining 8.8 % minority shares in the listed subsidiary Allgemeine Gold- undSilberscheideanstalt AG (Germany) and its subsequent delisting resulted in a cash out of € 53.9 million in
the second half.

Umicore Financial Report 2021

Umicore Statements Backcover

There are no loan commitments given to third parties.

34.4 Net cash flow used in financing activities

The cash used in financing activities is mainly related to the purchase and use of own shares to cover
the exercise of options (€ 22.2 million), the payment of dividends (€ 186.5 million) and of interest(€ 42.4 million) and the reimbursement of the lease liability (€ 19.5 million).
Thousands of Euros

2020

2021

Acquisition of tangible assets

391,475

379,572

Acquisition of intangible assets

44,06036,854

435,535

416,426

Acquisitions of assets
Capitalized R&D
Capital expenditure for continuing operations

32,36827,830403,168

388,596

The effect of exchange rate fluctuations in the statement of cash flow includes the effect of exchange
rate fluctuations on cash held on one hand and the currency translation effect on the intercompany loaneliminations on the other hand.

F35 Off-balance sheet rights and commitments
Thousands of Euros

2021

Guarantees constituted by third parties on behalf of the Group

30,99938,112

Guarantees constituted by the Group on behalf of third parties

6,940

3,112

Guarantees received

68,596

81,102

1,513,704

1,643,975

288

4,278

701,475

910,182

Commercial commitments for commodities sold (to be delivered)

1,667,126

1,930,639

Goods and titles of third parties held by the Group

4,930,583

5,447,836

288-

8,919,711

10,059,236

Commitments to acquire and sell fixed assets
Commercial commitments for commodities purchased (to be received)Miscellaneous rights and commitments
TOTAL

35.3 Guarantees received

These are pledges and guarantees received guaranteeing the satisfactory discharge of debts and existingand potential commitments of third parties towards the Group, with the exception of guarantees andsecurity in cash.
The guarantees received are mainly related to supplier guarantees backed by bank institutions. Thoseguarantees are set up to cover the good execution of work by the supplier.
Some guarantees received are related to customer guarantees, received mainly from a customer’s mothercompany on behalf of one of its subsidiaries. A minor part of the received guarantees is related torent guarantees.
All guarantees are taken at normal market conditions and their fair value is equivalent to the carrying
amount. No re-pledge has been done on any of those guarantees.

35.4 Goods and titles held by third parties in their own names but at the group’s risk
2020

Goods and titles held by third parties in their own names but at the Group's risk

69

35.1 Guarantees constituted by third parties on behalf of the group

These are secured and unsecured guarantees given by third parties to the creditors of theGroup guaranteeing that the Group’s debts and commitments, actual and potential, will besatisfactorily discharged.

35.2 Guarantees constituted by the group on behalf of third parties

These are guarantees or irrevocable undertakings given by the Group in favor of third parties guaranteeing
the satisfactory discharge of debts or of existing or potential commitments by the third party to
its creditors.

These represent goods and titles included in the Group balance sheet for which the Group bears the risk
and takes the profit, but where these goods and titles are not present on the premises of the Group.
It concerns mainly inventories leased out to third parties or held under consignment or under tolling
agreement by third parties.

35.5 Commercial commitments

These are firm commitments to deliver or receive metals to customers or from suppliers at fixed prices.

35.6 Goods and titles of third parties held by the Group

These are goods and titles held by the Group, but which are not owned by the Group. It concerns mainly
third-party inventories leased in or held under consignment or tolling agreements with third parties. It
also includes in a much lesser extent some non-metal leases that are not in the scope of IFRS 16 becauseof lower values or short-term.
The Group leases metals (particularly gold, silver, platinum and palladium) from and to banks and otherthird parties for speciﬁed, mostly short term, periods and for which the Group pays or receives fees. As at
31 December 2021, there was a net lease-in position of € 1,005 million vs. € 846 million at end of 2020. This
increase is mainly caused by higher volumes. As detailed in Note F2.7, those metal leases are not under
the scope of IFRS 16.

70

Umicore Financial Report 2021

Umicore Statements Backcover

F36 Contingencies

Thousands of Euros

As previously disclosed, the Group has a pending file that can be qualified as a contingent liability
according to the definition of IFRS. A subsidiary of Element Six Abrasives received notice of a local tax
assessment for € 24.9 million to be grossed up with statutory interests, estimated at 31 December 2021
at € 14.5 million. On March 8th 2022 a court determination was issued ruling in favour of the company’s
appeal. The local tax authorities have the possibility to appeal within 28 days of the determination.
Umicore retains a 40.22 % interest in Element Six Abrasives and accounts for the company using theequity method.
The Group is the also subject of a number of other claims and legal proceedings incidental to the normal
conduct of its business. Management does not believe that such claims and proceedings are likely to havea material adverse effect on the financial condition of Umicore.

2020

2021

Supervisory Board
Salaries and other compensation

1,022

1,262

Fixed portion

296

296

Variable portion (based on attended meetings)

373

467

Value of the share grant

350

497

3

3

Benefit in kind company car chairman

No variable or other compensation element (apart from attendance-related fees) is associatedwith directorship. No loan or guarantees have been granted by the company to members of thesupervisory board.
Thousands of Euros

2020

2021

Management Board

F37 Related parties

Salaries and other benefits

Thousands of Euros

2020

2021

Transactions with joint ventures and associates
Operating income

100,444

196,699

Operating expenses(148,888)(232,041)

Dividends received(1,796)(4,808)

Thousands of Euros

2020

2021

Current trade and other receivables

32,68539,774Current trade and other payables

38,77979,573

Outstanding balances with joint ventures and associates

The transactions with associates and joint ventures are mainly commercial transactions, sales andpurchases of goods and services.
There are no transaction with entities held by key management personnel.

7,522

18,814

Short-term employee benefits

1,496

11,021

Post-employment benefits

1,052

1,044

Other long-term benefits

492

2,027

Share-based payments

4,483

4,721

The data above shows the accounting view of the supervisory board and management board
remuneration and differs from the information provided in the remuneration report in the Corporate
Governance section.
In the tables above, the employer social security contributions, if applicable, are included in the short-term
employee beneﬁts. These do not feature in the remuneration report.
With regards to share-based incentives the share grant ﬁgures included in share-based payments above
represent the value of the shares granted in 2021 for services rendered in 2020. The remuneration reportshows the value of the shares granted in 2022 for services rendered in the reporting year 2021.
The ﬁgures related to the undeferred part of the variable remuneration linked to the individual
performance for the reference year 2021, included in short-term employee beneﬁts, represent the levelof accruals at balance sheet date. The remuneration report features the actual amounts paid with respect
to the reference year 2021.
Accruals booked for the deferred parts of the variable cash remuneration for the reference year 2021
are included in the other long-term beneﬁts. The amounts to be paid in 2024 will depend on long-term
performance measures and the exact amounts paid will be included in the remuneration report of 2023.

Umicore Financial Report 2021

Umicore Statements Backcover71

F38 Events after the reporting period

Finally, the crisis is resulting in a sharp increase in global energy prices, inflating the Group’s operationalcosts and potentially structurally impacting global economic growth if persistent.

The Supervisory Board will propose a gross annual dividend of € 0.80 per share at the Annual General
Meeting on 28 April 2022. This compares to a full dividend of € 0.75 p.s. paid out for the financial year 2020.
Taking into account the interim dividend of € 0.25 per share paid out on 24 August 2021 and subject toshareholder approval, a gross amount of € 0.55 per share will be paid out on 4 May 2022.

Umicore strongly condemns all acts of war and violence and the company and its employees are engaging
into humanitarian support initiatives to help to alleviate the human suffering.

In February 2022, Umicore has signed a € 500 million sustainability-linked loan (SLL), tying for the firsttime the Group’s funding costs to its sustainability performance and successfully refinancing its existing€ 300 million syndicated credit facility.
In February 2022, Umicore has signed two separate long-term power purchase agreements (PPAs), with
ENGIE and Axpo to source renewable electricity from offshore and onshore wind turbines in Belgium.
These agreements will cover more than half of the electricity demand from Umicore’s Belgian sites andhelp the Group achieve its objective to be carbon neutral by 2035.
In February 2022, Umicore announced the signing of an agreement with Automotive Cells Company (ACC)on battery recycling services for the needs of ACC pilot plant in Nersac, France.
Related to the contingent liability linked to a tax assessment received by Element Six Abrasives andsubsequent appeal, on March 8th 2022 a court determination was issued ruling in favour of the company’s
appeal. The local tax authorities have the possibility to appeal within 28 days of the determination.
Umicore is closely monitoring the crisis in Ukraine and assessing any resulting implications to its business.
It is currently impossible to fully assess the direct or indirect impact of this crisis on Umicore in view ofthe fast evolving context and the related uncertainties.
Umicore’s sales in 2021 into Russia or Ukraine were negligible on Group level and Umicore has nooperational presence in Ukraine and no meaningful operational presence in Russia. Russia, however, is arelevant supplier country to Umicore, to certain of its customers and to certain supply chains it serves. In
particular, Russia is an important global producer of certain Platinum Group Metals (mostly palladium andto a lesser extent rhodium) and of nickel. Umicore built a diversified supply base for these metals with
supply from various countries and is additionally being supplied through its own recycling operations. Any
prolonged absence of supply of these metals as a result of the crisis is expected to increase global supply
tightness and potentially disrupt supply chains in some of the markets Umicore serves, particularly in theautomotive industry, which could impact demand for Umicore's product and services in these markets.
This potential metal supply tightness could trigger severe metal price and trading volatility, which could
impact the Group’s profitability and cash flows.

F39 Earnings per share
Earnings per share
(EUR)

2020

2021

EPS - basic

0.54

2.57

EPS - diluted

0.54

2.56

Basic adjusted EPS

1.34

2.77

The following earnings figures have been used as the numerator in the calculation of basic and diluted
earnings per share:

NUMERATOR ELEMENTS
Thousands of Euros
Net consolidated profit, Group share

Notes

2021

130,530

618,959

322,407667,492

F9

From continuing operations
Adjusted net consolidated profit, Group share

2020

F9

The following numbers of shares have been used as the denominator in the calculation of basic anddiluted earnings per share:

DENOMINATOR ELEMENTS
Total shares issued as at 31 Decemberof which treasury sharesof which shares outstanding
Weighted average number of outstanding shares
Potential dilution due to stock option plans
Adjusted weighted average number of outstanding shares

2020

2021

246,400,000

246,400,000

5,733,685

5,200,995

240,666,315

241,199,005

240,589,550

240,868,119

1,183,525

1,112,044

241,773,075

241,980,163

Umicore Statements Backcover

Total outstanding shares are after deduction of treasury shares, which are held to cover existing stock
option plans or are available for resale. The denominator for the calculation of diluted earnings per sharetakes into account an adjustment for stock options.
During 2021, no new shares were created as a result of the exercise of stock options with linked
subscriptions rights. During the year Umicore used 1,692,190 of its treasury shares in the context of theexercise of stock and 110,500 for shares granted. In the course of 2021, Umicore bought back 1,270,000 own
shares. On 31 December 2021, Umicore owned 5,200,995 of its own shares representing 2.11 % of the total
number of shares issued as at that date.

F40 IFRS developments
There were no new standards, amendments and interpretation to standards issued, and mandatory
for the first time for the financial year beginning 1 January 2021 with a material impact on the Group’s
consolidated financial statements .
In case of material, these are developed in the accounting policies section.
A fundamental reform of major interest rate benchmarks is being undertaken globally, including the
replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates (referred
to as ‘IBOR reform’). The amendments to IFRS 9 and IAS 39 Financial Instruments: Recognition andMeasurement provide a number of reliefs, which apply to all hedging relationships that are directly
affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise touncertainty about the timing and/or amount of benchmark-based cash flows of the hedged item or thehedging instrument. These amendments have no impact on the consolidated financial statements of the
Umicore Group as it does not have any interest rate hedge relationships that are referenced to LIBOR. In
2021, Umicore set up a working group to monitor the IBOR reform and its potential effect across the Groupon contracts.
For all other new interpretations and standards not yet mandatory as from 1 January 2021,
management has no indications that this will result in a material impact on the Group's consolidated
financial statements.

F41 Auditors’ remuneration
The world-wide remuneration for the statutory auditor and its afﬁliated companies totaled € 2.2 million,
including an amount of € 1.8 million for the statutory audit missions (€ 0.5 million for the audit of themother company) and € 0.4 million for non-statutory audit services including audit-related and otherattestation services (€ 0.2 million) and other non-audit related services (€ 0.2 million).

Umicore Financial Report 2021

72

Umicore Financial Report 2021

Umicore Statements Backcover

Parent company separate summarized financial statements
The annual accounts of Umicore are given below in summarized form.
In accordance with the Companies code, the annual accounts of Umicore, together with the management
report and the statutory auditor’s report will be deposited with the National Bank of Belgium.

Thousands of Euros

31/12/2020

31/12/2021

1. Assets
Fixed assets

2,885,295

3,172,625

3,296,290

I.

Formation expenses

6,066

14,685

10,288

II.

Intangible assets

114,726

99,032

99,067

III.

Tangible assets

467,458

452,430

460,546

IV.

Financial assets

Current assets

2,297,045

2,606,478

2,726,389

1,748,153

2,060,640

2,169,189

V.

Amounts receivable after more than one year

449,366

476,214584,998

VI.

Stocks and contracts in progress

534,771

617,346

503,271

VII.

Amounts receivable within one year

519,135

620,119

861,136

VIII.

Investments

184,701

290,395

185,936

IX.

Cash at bank and in hand

2,190

4,565

559

X.

Deferred charges and accrued income

57,99052,00133,2894,633,448

5,233,265

5,465,479

Capital and reserves

2,268,310

2,177,834

2,428,079

I.

Capital

550,000

550,000

550,000

II.

Share premium account848,130

848,130

848,130

III.

Revaluation surplus

91

91

91

IV.

Reserves

389,855

414,075

391,090

V.

Result carried forward

262,604

267,163352,163

Vbis. Result for the period

209,258

86,475

272,454

8,372

11,90014,151UMICORERue du Marais 31
B-1000 Brussels(Belgium)

The legal reserve of € 55.0 million which is included in the retained earnings is not available
for distribution.

31/12/2019

Summarized balance sheet at 31 December

These documents are also available on request at:

The statutory auditor did not express any reservations in respect of the annual accounts of Umicore.

73

TOTAL ASSETS
2. Liabilities and shareholders' equity

VI.

Investments grants

Provisions and deferred taxation
VII.A. Provisions for liabilities and charges
Creditors

123,600

206,053

198,047

2,241,539

2,849,378

2,839,353

VIII.

Amounts payable after more than one year

1,082,864

1,707,729

1,707,589

IX.

Amounts payable within one year

1,076,244

1,063,641

1,040,392

X.

Accrued charges and deferred income

82,43178,00891,372

4,633,449

5,233,265

5,465,479

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

Umicore Financial Report 2021

Umicore Statements BackcoverThousands of Euros

31/12/2019

31/12/2020

31/12/2021

I.

Operating income

3,489,297

4,459,290

6,229,378

II.

Operating charges(3,494,693)(4,481,338)(5,947,989)

III.

Operating result(5,396)(22,048)

281,389

IV.

Financial income

259,275

201,457

213,675

V.

Financial charges(41,210)(85,500)(133,578)

VI.

Result on ordinary activities before taxes

212,669

93,908361,486

X.

Income taxes(3,411)(7,433)(51,736)XI.

Result for the period

209,258

86,475309,750

209,258

86,475309,750

2019

2020

2021

Profit (loss) to be appropriated588,668

558,337

661,913

1.

Profit (loss) for the financial year

209,258

86,475309,750

2.

Profit (loss) carried forward

379,410

471,862352,163

Appropriation to equity(26,598)(24,220)

22,985

3.

(26,598)(24,220)

22,985

Thousands of Euros

C.

D.

F.

To the reserve for own shares

Profit (loss) to be carried forward (1)471,862352,163

491,9572.

471,862352,163

491,957

Profit (loss) to be carried forward

Profit to be distributed (1)1.
2.

(90,208)(181,954)(192,941)(90,208)(180,395)(192,941)-(1,559)-Dividends
ordinary shares
Profit sharing to personnel

A.

(1) The total amount of these two items will be amended to allow for the amount of the company's own shares held by Umicoreon the date of the Annual General Meeting of Shareholders on 28 April 2022 ; the gross dividend of EUR 0.80 will be proposed.

Share capital
1.

2.

Issued capitalAt the end of the preceding
financial year

550,000

246,400,000

At the end of the financial year

550,000

246,400,000

550,000

246,400,000

Structure of the capital
2.1.

Categories of shares
Ordinary shares

2.2.

E.

Appropriation accountA.

Number of shares

Statement of capital

Income statement

XIII. Result for the period available

Thousands of Euros

74

G.

Registered shares orbearer shares
Registered

43,682,308

Bearer202,717,692

Authorized unissued capital

55,000% capital

Number of shares

Notification date

Family Trust Desmarais, Albert Frère andGroupe Bruxelles Lambert S.A.

15.98

39,363,737

29/06/2021

BlackRock Investment Management

4.97

12,239,906

17/09/2021

Baillie Gifford & Co and Baillie Gifford
Overseas Ltd.

10.01

24,660,116

29/09/2021

Others66.94

164,935,246

31/12/2021

Own shares held by Umicore

2.11

5,200,995

31/12/2021

100.00246,400,000

100.00246,400,000

Shareholder base (1)of which free float(1) At 31 December 2021, 5.201.500 options on Umicore shares are still to be exercized. This amount includes 5.201.500 acquisitionrights of existing shares held by Umicore.

Umicore Statements BackcoverManagement responsibility statement
We hereby certify that, to the best of our knowledge, the Consolidated Financial Statements as of
31 December 2021, prepared in accordance with the International Financial Reporting Standards (IFRS)
as adopted by the European Union, and with legal requirements applicable in Belgium, give a true andfair view of the assets, liabilities, financial position and profit or loss of the Group and the undertakings
included in the consolidation taken as a whole, and that the management report includes a fair reviewof the development and performance of the business and the position of the Group and the undertakings
included in the consolidation taken as a whole, together with a description of the principal risks anduncertainties that they face.
11 March 2022,
MATHIAS MIEDREICH
CHIEF EXECUTIVE OFFICER

Umicore Financial Report 2021

75

Umicore Financial Report 2021

FINANCIAL CALENDAR1
28 APRIL 2022
General meeting of shareholders(financial year 2021)

22 JUNE 2022
Capital Markets Day

29 JULY 2022
Half year results 2022
1 Dates are subject to change. Please check the Umicore website for
updates to the financial calendar - umicore.com

https://www.umicore.com/en/investors/

STOCK
Euronext Brussels

INVESTOR RELATIONS+32 2 227 70 68
investorrelations@eu.umicore.com

MEDIA RELATIONS+32 2 227 71 47
media@umicore.com

ADDITIONAL INFORMATIONABOUT THIS REPORT
Annelies Storme
sustainability@umicore.com
BUSINESS ETHICS & SECURITY
Kristle Matton – Baudouin Caeymaex+32 2 227 78 37 - +32 2 227 73 32
grievances@umicore.com
ESG
Natalia Agüeros-Macario+32 2 227 71 02
natalia.agueros@eu.umicore.com
ENVIRONMENT & VALUE CHAIN
Wouter Ghyoot+32 2 227 75 41
wouter.ghyoot@eu.umicore.com
HEALTH & SAFETY
Bert Swennen+32 2 227 74 45
bert.swennen@eu.umicore.com
HUMAN RESOURCES
Céline Van Haute+32 2 227 74 45
celine.vanhaute@eu.umicore.com

DESIGN & EXECUTION
Cascade – tdcascade.com
MachMedia - machmediagroup.com
Tangelo Software – tangelo-software.com
PHOTOGRAPHY
Jean-Michel Byl, Umicore
LANGUAGESThis report is available in English and Dutch
ONLINE
Browse the report online or dowload the reportin English:
https://annualreport.umicore.com/en/2021
in Dutch:https://annualreport.umicore.com/nl/2021
PUBLISHER RESPONSIBLE AT LAW
Umicore Group Communications & Investor Relations
Evelien Goovaerts+32 2 227 78 38
Evelien.goovaerts@eu.umicore.com

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