Rising to thechallenges
Integrated Annual Report 2020

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Contents
About us3

Umicore’s response to COVID-19

26

Economic statements

101

Business groups

4

Economic Review

29

Financial statements, F1-F41

108

Umicore at a glance

5

Value chain and society

39

Value chain statements, V1-V5

181

Horizon 20206

Eco-efficiency

45

Environmental statements, E1-E8

188

Global trends

8

Research, development & innovation

49

Social statements, S1-S9

198

Taking on the big challenges

9Great place to work

54

About this report

211

Business model

10

Supervisory Board

61

GRI index

213

CEO and Chairman's review

13

Management Board

66

Assurance reports

216

Stakeholder Engagement

16

Senior management71

References and key links

221

Advocacy for impact

21

Management approach72

Key figures

222

Materiality

22

Managing risk effectively

76

Giving back to society

25

Governance statements, G1-G13

87

Front cover image: Reda Malakauskaité, Peter Verholen
And Steven Van Hout working in the solid state battery team

The Umicore integrated annual report offers a comprehensive andintegrated view of our economic, financial, environmental, value
chain and social performance for 2020. This report is in accordancewith the GRI Standards: Core option.
Access all items in this report, online, at:
ANNUALREPORT.UMICORE.COM

Umicore Integrated Annual Report 2020

About us

3

About us
THE GLOBAL MATERIALS TECHNOLOGY & RECYCLING GROUPPROVIDING TOMORROW’S SUSTAINABLE SOLUTIONS FOR CLEAN MOBILITY AND RECYCLING
Umicore is uniquely positioned in all aspects of clean mobility
materials and in recycling. we provide clean-mobility solutions for all
platform types and we recycle these materials when they reach theend of their useful life.

We develop custom materials and ensure that processes takeaccount of health and safety, recyclability, cost efficiency, waste
reduction and energy efficiency, both in our own facilities and acrossthe value chain.

Using our metallurgy, chemistry and materials science expertise, thisclosed-loop business model is our powerful differentiator and it willcontinue to be the basis on which we carry out our business andbuild our strategy.

We believe our success is linked to how we balance the economic,
environmental and social impact of our operations.

We provide automotive catalysts to clean the exhaust gases frominternal combustion engines for lightduty and heavy-duty vehicles
of all fuel types, and the rechargeable battery materials andautomotive catalysts that are required to power hybrid, plug-in
hybrid and full electric vehicles. We also produce catalysts for fuelcell-powered vehicles and for static or industrial applications.
Umicore operates one of the world’s most sophisticated precious
metals recycling facilities and, across our activities, we can recover
28 precious and non-ferrous metals from industrial residues, usedelectronic scrap, batteries, automotive and industrial catalysts, fuelcells and more. We also provide recycling services to customers to
help maximize their efficiency.

Our integrated approach to sustainability is not just about minimizing
the impact of our industrial operations: our commitment to ethicaland responsible sourcing distinguish us from our competitors while
delivering value for all.

Umicore strives to have a positive impact,enhancing quality of life through our
products and services, reducing harmful vehicle
emissions, giving new life to used metals andpowering the cars of the future.

The recovered materials are then transformed into pure metals or
new products.

Umicore Integrated Annual Report 2020

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4

Business groups
OUR COMPLEMENTARY BUSINESS GROUPS ENABLE A MORE SUSTAINABLE WORLDCOMBINING CUTTING-EDGE TECHNOLOGIES AND RECYCLING TO GIVE NEW LIFE TO USED METALS

Umicore Integrated Annual Report 2020

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5

Umicore at a glance

Umicore Integrated Annual Report 2020

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About us

6

Horizon 2020 successfully delivered
ECONOMIC PERFORMANCEOUR OBJECTIVESVALUE CHAIN AND SOCIETY

STRENGTHENLEADERSHIPDOUBLE THE
EARNINGS

WHY THEY AREIMPORTANTTo position Umicore to thrive
faced with the accelerating global
megatrends of stringent emissions
control, transport electrification
and resource scarcity.

To secure Umicore’s future successand sustainability by consistently
investing in R&D to develop andmarket innovative products andservices, and to ramp-up capacity
to meet growing market demandfor Umicore products and services.

To sharpen Umicore’s focus on
the ambitious growth initiatives
in clean mobility materials
and recycling.

KEY PERFORMANCE
INDICATORSGROUP REVENUES ANNUALGROWTH RATE 2015-20

OBJECTIVE ACHIEVED 2018

OBJECTIVE ACHIEVED IN 2019 FULLY ALIGNED WITH OECD
DUE DILIGENCE GUIDANCEADJUSTED EBIT CONTRIBUTION
OF TOTAL REVENUES(%)
FOR RESPONSIBLE SUPPLYCHAINS OF MINERALS FROM FROM CLEAN MOBILITY
AND RECYCLING
CONFLICT-AFFECTED
AND
33%
34%
37%
42%
HIGH-RISK AREAS
2015

+4.3%

REBALANCEPORTFOLIOGROUP ADJUSTED EBIT
(€m)
600
500
400
300
200
100
0

244
514

‘14

‘18

37%

ROCE 15%+ TARGET
42%
STEADY ROCE INCREASE THROUGH 2018;
AVERAGE CAPITAL EMPLOYED NEARLYDOUBLED DURING HORIZON 2020
21%

SUSTAINABLE
PRODUCTS & SERVICES

To provide environmental andethical sourcing benefits forcomparatively scarce raw materials
in order to foster sustainablesuccess and growth.

To develop products and services
that create sustainable value forour customers and society andincrease resource security.

77%

21%

2020 RECORD ADJUSTED EBIT

€ 536mSUSTAINABLE
SUPPLY

33%

33%

34%

2019
33%

MUCH OF THE REST IS FROMSOLUTIONS SUCH AS IMPROVINGCONNECTIVITY OR REDUCING
ENERGY CONSUMPTION

2020 adjusted EBIT
contribution per
segment does not offer
a representative view,
due to the significant
COVID-19 impact on theautomotive industry andthe counter cyclicality of
Recycling.

Umicore Integrated Annual Report 2020

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About usOUR OBJECTIVESECO-EFFICIENCYGREAT PLACE TO WORKEFFICIENTOPERATIONS

WHY THEY AREIMPORTANTKEY PERFORMANCE
INDICATORS

To make sustainability anirrefutable competitive
advantage for Umicore.

ENERGY CONSUMPTION-17%

vs 2015 benchmark,adjusted for intensity

7

SAFETY
To offer a safe workplace andembed a safety culture in our
workforce.

NUMBER OF
ACCIDENTS

49

HEALTHTo monitor, manage andprotect from exposure risks.

PEOPLEENGAGEMENTTo ensure Umicore’s status asan employer of choice in all theregions where we operate.

EXCESS READINGS*TOTAL EMPLOYED

1.6%

10,859* based on internal target values

RETENTION RATE96%

OUR MATERIALISSUES ANDSTAKEHOLDERENGAGEMENTThe Horizon 2020 strategy
represents a strong focus onmaterially important topics for
Umicore in the coming years:
Economic performance, Value
Chain and Society, Eco-Efficiency,
and Great Place to Work.
Umicore applies a localized
approach to stakeholder
engagement and manages
stakeholder relationships in linewith our decentralized approachto unit management.

Umicore Integrated Annual Report 2020

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8

Global trends
CLEAN AIR

Automotive emission legislations and public advocacy for clean
air continue to increase. In Europe and in Asia, legislators aredeveloping clean mobility policies to reduce SOx, NOx and CO2
emissions and strengthening emission standards to push industry todesign innovative emission control systems, including catalysts andcatalytic filters.

VEHICLE ELECTRIFICATION

The transport sector is the fastest growing source of global
greenhouse gases, with the largest share from road transport.
Electrified transport is essential to meet ambitions of reduced
emissions and clean air by combining energy efficient systems withrenewable energy sources. Incentives favoring electric vehicles are
increasing globally.

RESOURCE SCARCITY

Developing technologies, such as increasingly powerfulrechargeable batteries to reduce the environmental impacts ofsociety, increases the demand for specialty and precious metals.
Mining metals from primary sources has significant environmental
impacts, including a high carbon footprint. Easy-to-mine deposits are
increasingly scarce and ore bodies poorer.

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9Taking on the big challenges
ADDRESSING THE WORLD'S MOST PRESSING ISSUES
Umicore is working to meet the growing demand for clean mobility
and clean air. We are a leading producer of catalysts and catalytic
filters used in emission abatement systems for light and heavyduty
vehicles, on-road and off-road. Our catalysts and particulate filters
convert pollutant emissions into harmless gases and trap theparticulate matter, enabling our customers to meet present andfuture environmental standards. Our products have prevented
hundreds of million tonnes of harmful pollutants from being emitted
into the air.

Umicore fosters sustainable growth and champions its circularbusiness model. Our Hoboken facility is the world’s largest and mostcomplex precious metals recycling operation, processing over 200
types of raw material – from mining and industrial residues to “End­of-life” materials, such as electronic scrap and spent rechargeable
batteries – and recovering over 20 different metals. As part of ourclosed-loop business model, most of our business units recycle
industrial residues from customers. Umicore is growing its capacity
to cater to rising demand.

We strive to deliver environmentally friendly technologies
that ensure resource efficiency and sustainability in industry’s
supply chain.

We deliver environmental and ethical sourcing benefits, andincreased resource security.

Umicore is working to deliver energy efficiency technologies,
optimize resource use and reduce pollution. We are a leading
producer of cathode materials for lithium-ion batteries, which are
key in determining the power and energy density of rechargeable
batteries, to maximize driving distance of electrified vehicles. Our
nickel-manganesecobalt (NMC) cathode materials are a referencein the industry. To meet growing market demand, we announced
significant investments from 2017 to 2019 to further increase our
production of NMC cathode materials.
We provide solutions for a cleaner and more resilient future.

Umicore is determined to be a preferred employer wherever we
operate and is committed to empowering women for leadership.
We are a growing business with presence in markets around theworld and have won Top Employer status for our sites in Europe andAsia. We think this is because we strive to create a collaborativeenvironment, ensuring meaningful work and career-long learningand development opportunities. This means our employees have an
average length of service of 10 years, and that group-wide we havea 96% retention rate.
We all share the same values, we all respect one another and we are
all working towards making materials for a better life.

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Business model
We transform metals into functional materials
and recycle them to make new materials.
Our products deliver solutions for cleaner air
and increased e-mobility, while we turn waste
metals into a resource.
Our ethical sourcing and closed-loop approach
distinguish us from our competitors.
MATERIAL SOLUTIONS

We transform metals into functional materials that are integrated
into products by our customers, usually companies making products
for consumer or industrial use. Our catalysis materials provide
clean air and health solutions, while our battery materials give
added range and performance to electric vehicles and increased
battery life to portable electronics. Our materials are also insidecomputer motherboards and in the fiber optics and satellites thatkeep you connected.

APPLICATION KNOW-HOW

RECYCLING

Metals are an outstanding ingredient for sustainable materials
production because they can be recycled infinitely without losing
any of their chemical or physical properties. This is one of thefoundations of our business model.
A high volume of our metals come from recycled sources –production scraps and residues from customers and other industries,and end-of-life materials through our closed-loop services. Our
recycling operations can recover 28 metals. Our precious metals
recycling operation in Hoboken, Belgium, is built to recycle andrefine the most complex materials and to recover a broad spectrumof metals. Using our Sustainable Procurement Charter and ourframework for Cobalt, we purchase the remainder of our metal
supplies from sustainably and ethically vetted primary sources.

Many factors – from raw materials supply totalent retention – underpin our business model.
We manage these resources and relationships
for the long term.

We take metal and apply our expertise in metallurgy, chemistry,engineering and materials science skills, we add our product,
process and market know-how and offer solutions that enable ourcustomers to develop better, more sophisticated and safer products.

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SKILLS AND EXPERTISE

Our employees contribute their expertise and commitment toUmicore. Metallurgy, chemistry, engineering and materials scienceskills are critically important in our key growth areas: recycling andmaterials for clean mobility.
We are growing in Asia and in Europe and this means agreater focus on attracting talent for positions ranging fromproduction operators, engineers, research scientists, to commercial
and administrative functions.

UMICORE TECHNOLOGYTechnology is at the core of our success. We are committed
to innovation and research and development (R&D) are key
for innovation-led growth. We develop a significant part of ourtechnology using Umicore R&D findings and invest 6% of ourrevenues in R&D. Umicore also develops technology in with ourindustrial or academic partners and we protect our intellectual
property with patents.

UMICORE OPERATIONS

Our operations are carried out in recycling plants, specializedchemicals and materials production facilities, offices and research
centers, in 30 countries, often close to our customers to support
collaboration and to meet their specific product requirements. We
aim for excellence in environmental and social performance in all
our operations. We seek to minimize the impact of metal emissions,generate improved material and energy efficiency and offer a safeand healthy workplace. Operational excellence is important both insecuring our license to operate and in helping to make Umicore
more competitive.

MAXIMUM EFFICIENCYInput materials such as fuels and chemicals are essential to Umicore
operations and are purchased using our Sustainable Procurement
Charter framework. In most of the countries where we operate andgiven the specific nature of many of our operations, there is limited
choice in terms of energy sourcing. For this reason, our priority is tomaximise energy and auxiliary materials efficiency.

INVESTMENT & FUNDING

Investing in Umicore is an investment in producing materials for abetter life – our mission – and supporting our strategy. Umicore has
a proven track record of funding strategic growth initiatives from the
cash-flow generated by our own operations. Indebtedness is kept at
reasonable levels, as we aim to retain an investment-grade credit
status at all times.

PRODUCTS & SERVICES

Our ambition is to produce materials for a better life.
Umicore products can be found in applications that make day-to-day
life more comfortable and contribute to a cleaner, more efficientworld. We work closely with our customers to develop customized
materials or processes that consider health and safety, recyclability,
cost efficiency, waste reduction and energy efficiency both in ourown facilities and in the value chain.
We continuously search for innovative solutions for our customers
and work to meet the needs of a rapidly changing and moredemanding world.

11

THE UMICORE WAY

Umicore is committed to the principles of sustainable development.
We aim for excellence in environmental and social impact and strive
to offer a safe and healthy workplace. We offer solutions to global
challenges: our recycling services address growing resource scarcity
and reduce industrial waste and emissions. Our catalysts help
reduce air pollution, while our rechargeable battery materials help
make electrified transportation a reality. Umicore offers high quality
employment with competitive salaries, training and development
opportunities and long-term employment prospects.
Each site aims to be considered as a preferred employer locally.
Umicore supports the principle of collective bargaining and signed a
Global Framework Agreement on Sustainable Development with theIndustriALL Global Union.

SUPERIOR GROWTH & RETURNS

Umicore aims to generate a return on capital employed of morethan 15%. One of our Horizon 2020 goals is to double our earnings,
mainly through growth in recycling and materials for clean mobility.
While the primary focus is on organic growth, acquisitions are also
considered if they fit the strategy and can add value for shareholders.

Our closed-loop business model delivers
economic, social and environmental value forall our stakeholders.

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DELIVERING VALUE

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CEO and Chairman's review
MARC GRYNBERG & THOMAS LEYSEN ON 2020, REACHING HORIZON 2020 AND THE OUTLOOK FOR UMICOREMARC GRYNBERG CEO& THOMAS LEYSEN CHAIRMAN

The pandemic outbreak in 2020 brought
sudden challenges to our living and working
environment. Our priority was immediately
the wellbeing of our employees and thecommunities in which we operate.
We would like to thank Umicore employees
for their spirit, solidarity and strength during
the pandemic.

Virtual meeting between Marc Grynberg and Thomas Leysen

We would also like to express our gratitude to all
the Umicore medical staff and employees who
worked hard under difficult circumstances tomake sure we could be safe, first and foremost,and keep our operations up and running.
The challenge has been tremendous and theeffort to get through these times has beenvery demanding.

Despite the severe disruption brought on by the COVID-19 pandemic,
Umicore posted its strongest financial performance ever in 2020. This
reflects the merits of our strategy as well as a stellar performance in
Recycling, which was boosted by an exceptional price environment
in platinum group metals, and the resilience of our business
operations overall. It also reflects the agility and engagement of
our teams to adapt to challenging conditions and keep serving ourcustomers with diligence.
Revenues for the full year were down 4% at € 3.2 billion while
adjusted EBITDA increased 7% to € 804 million, with adjusted
EBIT up 5% at € 536 million, thereby exceeding the Horizon
2020 goal of doubling earnings in five years’ time. Return on
Capital Employed was 12.1%, well above our cost of capital despite
continued growth investments.
Umicore generated a solid performance in the first half of 2020,
with a strong result in Recycling offsetting the impact of theautomotive industry downturn on the results of Catalysis andEnergy & Surface Technologies. The second half of the year wasmarked by a strong sequential improvement in the Group’s revenues
and earnings driven by a sharp recovery in Catalysis as wellas continued robust operational performance and buoyant metal
prices in Recycling. Umicore’s response to the COVID-19 pandemic
included some temporary plant closures in the spring and certain
projects, development or qualification programs incurred delays dueto government-imposed lockdown measures or travel restrictions.
The vast majority of operations, however, were kept on stream
throughout the year. While we pursue ambitious growth programs,
we further streamlined our operations by closing plants in the USA
at Tulsa (Automotive Catalysts) and Wickliffe (Cobalt & Specialty

Umicore Integrated Annual Report 2020

About us
Materials). This is largely reflected in the 2.7% total headcountdecrease to 10,859 at the end of 2020.
In Catalysis revenues decreased, albeit less than the global car
market, thanks to Umicore’s strong market position in gasoline
technologies for light-duty vehicles, particularly in China and Europe,
as well as higher sales of heavy-duty diesel and fuel cells catalysts.
Revenues in Energy & Surface Technologies reflected the impactof the pandemic as well as lower sales of cathode materials forhigh-end portable electronics and energy storage applications. Salesof cathode materials for EV batteries grew broadly in line with EVbattery demand. Recycling had a stellar performance due to highmetal prices, high activity levels despite the COVID-19 crisis andfavorable trading conditions.
Investments in strategic growth projects continued in 2020
with capital expenditure totalling € 403 million, compared with€ 553 million in 2019. This reduction reflects the decision taken
shortly after the start of the COVID-19 outbreak to postpone selected
investment projects pending more clarity on market outlook,
except for those related to safety, health and environment andstrategic growth programs. Considering the continued investment inRechargeable Battery Materials’ greenfield plant in Poland, Energy &Surface Technologies accounted for close to two thirds of the Group’s
capital expenditure.
Our operations generated cashflows of € 603 million, up from€ 549 million in 2019, enabling Umicore to continue funding its
ambitious growth programs. Our balance sheet is strong with net
financial debt of € 1,414 million at 31 December 2020, corresponding
to 1.76 times adjusted EBITDA, below the ratio of 1.92 at the end of
2019. In the first half of the year, we further diversified our sourcesof funding by completing a € 500 million convertible bond offering
due in 2025 and by concluding a € 125 million 8-year loan with theEuropean Investment Bank.

One of the ambitions defined in our Horizon 2020 strategy was toturn sustainability into a greater competitive edge. In 2020 Umicore
achieved a Platinum EcoVadis rating, placing us among the top 1%
of our industry peers in the EcoVadis global network of over 65,000
rated companies.
Our safety performance made encouraging improvements in 2020
compared to previous years. The pandemic has led us to pay
closer attention to detail and we are convinced this has had apositive impact on safety. However, in December, a fatal accident
occurred at Umicore’s Cobalt & Specialty Materials site in Subic,
the Philippines. This tragic event shows that the journey to makeUmicore a zero-accident workplace is far from completion, even insites with an outstanding safety record: Subic had operated morethan 13 years without LTA. Overall, the group recorded 49 lost time
accidents in 2020 compared with 90 in 2019.
Our efforts in 2020 to make Umicore a great place to work focusedon our response to the COVID-19 pandemic, with the protectionof employees’ health remaining our top priority. We introduced
strict hygiene and other precautionary measures starting with ourfacilities in Asia, which were the first to be affected. Measures
were quickly tightened at all Umicore sites worldwide, with theaim of reducing the transmission risk within the organization,
keeping our employees healthy and offering them a safe workplace.
Umicore delivered surgical masks for private use to the homes of all
employees worldwide at a time when they were unavailable on the
open market.
We have seen a gradual increase in women in management andnon-management positions although we have not met our Horizon
2020 diversity goals. Our commitment to increase gender diversity
at all management levels is intact and we have adapted ourrecruitment programs accordingly. In 2020, the share of women
recruited into management positions increased to 30%.

14

In terms of the environmental profile of our operations, our focus
continues to be on minimizing the impact of our production
activities. For several decades, the blood levels of children living
close to the Umicore recycling plant in Hoboken, Belgium, havebeen monitored twice a year by the authorities. The sudden risein the lead in blood readings of the children living close to theplant in July 2020 came unexpectedly. A combination of external
factors, including exceptional weather conditions and the children’s
increased exposure from spending several months at home dueto the COVID-19 lockdown measures, contributed to the elevatedreadings. In addition to taking the necessary measures to returnto the positive trend of recent years, and although the root cause
investigation showed no major source of lead emissions in ourplant, Umicore is working on creating a green zone, to increase thedistance from the residential area, by buying the houses closest to
the plant. In doing so, Umicore aims at a structural and sustainable
solution to this historical issue. A € 50 million provision was booked
to cover the estimated costs of establishing the green zone.
Our eco-efficiency is measured against our Horizon 2020 goal of
performing equally well or better than in 2015, with values adjusted
for activity levels. The impact of our operations was substantiallyreduced, with metal emissions to water and air down by 59% and67%, respectively, compared with 2015 levels. Energy consumption
was slightly higher than in 2019 in absolute value, but adjusted to2015 activity levels, energy consumption was down 17% as a resultof significant efficiency improvements.
The growing added value of our sustainable business isdemonstrated by over 60% of secondary and end-of-life materials in
our input mix. Future sourcing for catalysts, fuel cells and batteries
alike, will only be possible by closing the loop and recovering the
scarce metals used in these products when they reach end of life.
Umicore’s unwavering pursuit of ethical raw materials supply is thedriver of our sustainable sourcing. Umicore remains the first cathodematerial producer to offer certified materials from a clean and ethicalorigin to its customers.

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Our work with the Global Battery Alliance, of which Umicore
was a founding member in 2017, continues. In addition to thebattery passport initiative to share reliable information and datato consumers about the level of sustainability of a battery, theAlliance is developing a standard for responsible artisanal mining in
the Cobalt Action Partnership to address the socio-economic risks
linked to cobalt mining activities in the Democratic Republic of Congo(DRC) and to eradicate child labor. In 2020, the Alliance createda collaborative fund for the Prevention of Child Labor in Mining
Communities, seeking to strengthen cobalt mining communities
in the DRC and tackle the root causes of child labor. The Fund,
administered and programmed by UNICEF, works in cooperation withlocal government entities and civil society organizations in the DRC.
Umicore is proud to be the first contributor to the Fund.
Many of the sources of turbulence in 2020, including the impact of
COVID-19 and its impact on industry, particularly in the automobile
sector, remain unresolved and limit visibility. Umicore adjusted withagility to the challenges caused by the pandemic. We implemented
measures to protect employee health, cashflows and strengthenliquidity, and we reassessed our production footprint and thecarrying value of certain assets. We are convinced that these steps
strengthened our position in an uncertain environment and we willcontinue to remain agile in the face of evolving market dynamics.
The push towards clean mobility is stronger than ever, with various
governments including green recovery measures and stimuli forcleaner mobility in their crisis recovery packages, in particular in
Europe and China. In this context, we chose to move forward with
our ambitious growth strategy in cathode materials for electrified
vehicles and made significant progress with the construction of ourgreenfield plant in Nysa, Poland, which on commissioning by theend of the first half of 2021, will be the first industrial-scale cathodematerials plant in Europe.

In addition, we are moving ahead with our growth plans in fuelcell catalysts for automotive applications and with the expansionof light-duty and heavy-duty catalyst production in China, to caterto the growing demand for our technologies as emission norms
continue to tighten. In terms of addressing resource scarcity,
Umicore continues to invest to improve the environmental andsafety performance of the Hoboken recycling plant.
Technology innovation remains vital to our success and R&D
expenditure increased by 6% in 2020 to € 223 million, equivalent
to 7% of our revenues. The majority of this increase came fromhigher R&D spend on new product and process technologies in
Rechargeable Battery Materials.

We are proud of our performance and results in2020 and confident that our long-term growthstrategy will continue to deliver value.
The global economy is showing signs of recovery from the severe
downturn caused by the COVID-19 pandemic. However, a highdegree of uncertainty remains with respect to the evolutionof the pandemic and the pace and speed of the recovery in
different regions. Against this backdrop and under the assumptionthat COVID-19 will not result in additional material or protracted
disruptions to the economy or Umicore’s operations, Umicore
expects to achieve substantial growth in earnings in 2021, withgrowth in all Business Groups.

15

We have successfully completed our Horizon
2020 strategy and have reached new heights.
Everything is in place for Umicore to keep thriving – talented teams,
a promising innovation pipeline, highly supportive megatrends andthe financial means to fund our ambition. With all this in place,
we feel that it is an auspicious moment to think about the next
chapter of Umicore’s success story and start preparation for the CEO
succession. The Supervisory Board will take the time to identify asuccessor who will build on these strong fundamentals and bringUmicore to its next stage of development and Marc will assist theBoard with a smooth transition in due course.
This year’s annual report provides additional clarity on the value
Umicore brings to society, as we prepare to move into a new
strategic phase as of 2021 and marks our first report in our transition
to “digital first” communications.
We would again like to express our thanks to all the stakeholders
for their contribution to our performance in the face of theunprecedented conditions in 2020, most especially to all Umicore
employees for their spirit and their prompt, determined andeffective response to the COVID-19 threat.

MARC GRYNBERG CEO& THOMAS LEYSEN CHAIRMAN

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16

The management board receives feedback from stakeholders
in several ways, ranging from direct feedback from visits tocustomers, suppliers, employees and investors, to information
provided by the business units, departments or workers’
representatives during their regular briefings to senior
management. Other forms of input include periodic employee
survey results.
The Horizon 2020 strategy represents a strong focus on what
is of material importance for Umicore through 2020. The
development of the strategy has involved a specific stakeholder
approach, described in the materiality assessment process inthis chapter.
Umicore is an active participant in various industry
associations through which we engage with policy makers
to contribute to a better understanding of industry-related
issues. These associations are also important platforms for
Umicore to contribute to broader, industry-wide action onsustainable development.
On a less formal level, members of our senior management areoften called upon or volunteer to participate in public forums
to discuss our business strategy and sustainable development
approach. Such events provide the opportunity to interact
with various groups including business leaders, academics andcivil society.

Stakeholder Engagement
Umicore is a publicly listed company. As such, we interact with many parties who have an interest in the way we conduct business.
The relationship that we foster with these parties or stakeholders has a direct impact on our success.

Umicore’s main stakeholder groups are highlighted and havebeen categorized in broad terms, using generic stakeholder
categories that apply to most industrial organizations. Also
shown are the nature of the transactions that occur anda brief description of the dialogue between Umicore andthe stakeholders.

Stakeholder engagement at Umicore is based on a localized approach whereby all sites are required to identify their respective
stakeholders and establish suitable ways of engaging with them. In many cases, such as the dialogue with customers and suppliers,
the stakeholder relationships are primarily managed by the business units themselves, in line with our decentralized approach tounit management.

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17

CUSTOMERSEMPLOYEES

Umicore materials can be found in a variety of applications that deliver solutions for cleaner air andincreased e-mobility. Umicore’s unique closed-loop services turn waste metals into a resource. To be
the preferred partner of our customers, we work closely with them to develop, produce and recycle
metal-related materials for material-based solutions tailored to their needs.

Umicore employs 10,859 people worldwide. Because our employees are key to our success, we invest
significant resources in ensuring we are an employer of choice in all the regions where we operate.
In 2020, Umicore paid a total of € 798 million in salaries and other benefits to the employees of fully
consolidated companies, of which € 97 million in social security payments.

We provide advanced products that are built on our customers’ specific performance, environmental
and sustainable sourcing needs, including development of bespoke solutions when needed. Beyond thiscustomer-oriented approach, we provide close collaboration across all regions to deliver a sustainable andsecure supply of high-quality products and services. Umicore has an international customer base and thepresence to support them in both growing and established markets. Our high investments in R&D provide
advanced and efficient production and process technologies that enable our customers to meet the moststringent sustainability demands and ambitions.

Umicore is committed to providing competitive salaries and working conditions to its employees and toproviding occupational and professional training opportunities. Employees are expected to adhere to theprinciples and policies outlined in The Umicore Way and Code of Conduct. Open dialogue is promoted
within the company and includes an opinion survey every 3 years.

Ongoing interaction with customers is managed by the business units. In addition to this close contact,
all business units have a customer feedback process to periodically gauge customer satisfaction.

83
Countries with Umicore costumers

Umicore respects the principle of collective bargaining wherever it is requested. While such practice iscommonplace in Europe, in other locations collective bargaining mechanisms and trade unions may beless common or face local legal restrictions. In 2019, Umicore renewed the sustainable development
agreement with the international union IndustriALL on the global implementation of its policies onhuman rights, equal opportunities, labor conditions, ethical conduct and environmental protection. The
agreement allows trade unions to participate constructively in the pursuit of these objectives. A joint
monitoring committee composed of both parties oversees the implementation of the agreement.
Company-wide communication channels include intranet and company and business unit newsletters.
Umicore operates a Group-wide learning management platform called “MyCampus”.

€798m
In salaries & other benefits

Umicore Integrated Annual Report 2020

Stakeholder Engagement

18

SOCIETY

SUPPLIERS

Umicore can only continue operating if it has the license to do so from society and we the utmost tooperate in a way that promotes sustainable development, going beyond the legally defined boundaries
set for all companies. We set our own standards, applicable across the Group, often surpassing thelegislative demands in many areas where we operate. Umicore also strives to develop materials thatenhance quality of life and specifically addressing certain critical environmental or societal challenges.

Umicore operates through 3 business groups on 5 continents. These business groups not only requirematerials to make their products but also energy, transportation and a range of other services. Overall,Umicore has over 18,000 suppliers across over 90 countries. These suppliers benefit from our presence
as a customer: in 2020, Umicore paid these suppliers € 18.7 billion (including the metal content of
raw materials).

Contact with the communities where Umicore operates is the most direct way that we interact withsociety. Open and transparent dialogue with such communities is an integral part of our stakeholder
engagement. Through employment, Umicore participates in the generation of wealth in the areas where
it operates. Although wealth generation is an obvious benefit, the way in which this wealth is generated
is also of great importance. We strive to be top employer wherever we operate. ivil society groups
periodically declare a stake in our operations and the way we do business. Umicore welcomes suchinterest and attempts to engage openly and constructively.

We are engaged in a constant dialogue with our suppliers to define technical specifications and to ensure
mutually acceptable terms and conditions for continued partnership, such as prompt and uninterrupted
delivery of materials/services. The business units are responsible for the purchase of raw materials while
the corporate Purchasing and Transportation department works to ensure that transportation, energy andother provisioning needs are met.

Umicore makes voluntary contributions at site and Group-level to a range of charitable causes. We
manage Group-level engagement efforts through a Group Donations Committee that has the mandate ofengaging with civil society groups and determining the extent of partnerships. For information on these
initiatives in 2020 see Giving Back to Society.

€1.5m

Our approach is shaped by our Sustainable Procurement Charter. This charter is complemented by
specific approaches or frameworks for some critical raw materials. Our Horizon 2020 strategy includes anobjective on sustainable supply that builds on the experience gained through our previous objective on
sustainable procurement. For information, see Value Chain & Society.

€18,719m
Paid to suppliers worldwide

Donated to charitable causes

Umicore Integrated Annual Report 2020

Stakeholder Engagement

19

ASSOCIATE & JOINT VENTURE COMPANIESSHAREHOLDERS & INVESTORS

Umicore has investments in various business activities over which it does not exercise full management
control. Associate companies are those where Umicore has a significant influence over financial andoperating policies, but no control. Typically, this is evidenced by ownership of between 20% and 50% of
the voting rights, while joint ventures usually entail a 50:50 split in ownership and control. Joining forces
is a way to speed up technological developments or gain access to specific markets.

Umicore strives to provide timely and accurate information on its strategy, performance and prospects
to its shareholders. In 2020, the macro-economic uncertainty brought on by the COVID-19 pandemic
significantly affected the financial markets, driving extraordinary volatility on the stock exchanges.
Against this background, Umicore’s Investor Relations team focused on communicating Umicore’s
business continuity plan and actions to mitigate financial and operational headwinds. This involved the
publication of several updates on the impact of COVID-19 throughout the year as result of the rapidly
evolving market environment. As well as publishing press releases and the Annual Report, Umicore’s
management and Investor Relations team communicated in 2020 with investors during virtual roadshowsin North America, Europe and Asia, as well as through virtual investor conferences, webcasts, conference
calls and the annual general meeting of shareholders. Main topics covered included the description of
the impact of COVID-19 on Umicore’s operations, the liquidity position, the shareholder remuneration,
investment plans and outlook. Umicore’s disclosure covers both financial and Environmental, Social andGovernance (ESG) performance and we regularly engage with our investors on those topics.

Where management control is not exercised by Umicore, we are able to guide and control the
management and monitor business developments through representation on the board of directors.
Although we cannot impose our own policies and procedures on any associate (or indeed any joint
venture where we do not possess majority voting rights), our expectations that the operations be run inaccordance with the principles of the Umicore Way are clearly communicated.
Umicore is rigorous in safeguarding any intellectual property that is shared with associate or joint venture
partners. For a full list of associate and joint venture companies, see note F17.

4
Associate companies

Umicore has a high free float with a broad base of international shareholders which at the end of 2020
were primarily situated in Europe and North America. The overview of shareholders holding voting rights
equal to 3% or more and analyst research and consensus information can found on our website under
Share Information. 22 brokerage firms cover and publish equity research notes on Umicore, reflecting
strong and global interest from the financial market in Umicore’s equity story and growth opportunities.

16
Management roadshows

Umicore Integrated Annual Report 2020

Stakeholder Engagement
PUBLIC SECTOR & AUTHORITIESIn 2020 Umicore engaged with a variety of stakeholders to introduce the technology fundamentals of thematerial solutions we offer to our customers. Umicore coordinates and fosters a range of interactions in
the countries and regions where we are operationally active. We focus on policy development supporting
the introduction of clean mobility supporting the global energy transition to reduce climate impact. In
addition, we contribute to a better understanding and faster implementation of circular economy models
in the applications related to Umicore activities. Continuous innovation is crucial to improve our products
and services and therefore we also engage in national and international programs and initiatives thatdevelop longer-term technology roadmaps serving as a basis for collaborative funding opportunities.
As a result, Umicore was approved as a partner in the first Important Project of Common European
Interest for Batteries (IPCEI) starting from early 2020. Part of the innovation and upscaling activities forbattery materials and battery recycling in Belgium, Germany and Poland will be funded by the national
governments. Umicore is mindful of the sensitivity of taking positions on issues of public interest andhas developed guidelines to do so responsibly through the industry groups to which we are affiliated.
Well-developed science and facts form the basis of the opinions and position we take.
Umicore paid € 79 million in taxes on our 2020 operations and with our employees contributed€ 97 million in social security payments. Umicore regularly enters scientific partnerships with public
institutions such as universities with the primary aim of furthering research projects or providing expert
advice on technology directions. Partnerships and research grants are occasionally contracted with publicorganizations. As a matter of policy, Umicore does not make donations to political parties or organization.

€79m

20

KEY MEMBERSHIPS

A3M (L’Alliance des Minerais, Minéraux et Métaux); Agoria (Belgian multi-sector federation for thetechnology industry); American European Community Association (AECA); Bebat; Belgian Indian Chamberof Commerce and Industry (BICC&I); Belgian industrial Research and Development (BiR&D); Belgium-Japan
Association & Chamber of Commerce (BJA); Eurometaux (European Non-Ferrous Metals Association);
European Industrial Research Management Association (EIRMA); European Round Table of Industrialists(ERT); ETION; Federation of Belgian Industrial Energy Consumers (FEBELIEC); Flemish AerospaceGroup (FLAG); Flemish Network of Enterprises (Voka); Flanders-China Chamber of Commerce (FCCC);
Global Legislators for a Balanced Environment (GloBE EU); Metalle pro Klima (WirtschaftsVereinigung
Metalle); TransAtlantic Business Council (TABC); Verbond van Belgische Ondernemingen (VBO); Vlaamse
Technische Kring (VTK); World Economic Forum (WEF).
Associacao dos Fabricantes de Equipamentos para Controle de Emissoes Veiculares da América do Sul(AFEEVAS); Association for Emissions Control by Catalyst (AECC); Catalyst Manufacturers Association,
Japan (CMAJ); Committee of Vehicle Emission Control in China (CVEC); Emission Controls Manufacturers
Association, India (ECMA); European Precious Metals Association (EPMF); Hydrogen Council; Hydrogen
Europe; Manufacturers of Emission Controls Association (MECA); Verband der Automobilindustrie (VDA);
Verband der Chemischen Industrie e.V. (VCI).
Battery Europe Partnerhip Association (BEPA); Cobalt Institute; Cobalt REACH consortium; Deutsche
Gesellschaft für Galvano- und Oberflaechentechnik (DGO); Energy Materials Industrial Research Initiative(EMIRI); European Association for Battery, Hybrid and Fuel Cell Electric Vehicles (AVERE); Nickel Institute;
Nickel REACH consortium.
European Battery Recycling Association (EBRA); European Electronics Recyclers Association (EERA);
European Precious Metals Federation; Fachvereinigung Edelmetalle (German Precious Metals
Association); Global Battery Alliance (GBA); International Platinum Group Metals Association (IPA);International Precious Metals Institute; Minor Metals Trade Association; Responsible Jewellery Council(RJC); The European Association of Advanced Rechargeable Batteries (RECHARGE); The International
Platinum Group Metals Association (IPA); The London Bullion Market Association (LBMA); The London
Platinum and Palladium Market (LPPM); Vereniging Nederlandse Metallurgische Industrie (VNMI).

Taxes paid on our 2020 operations

Umicore Integrated Annual Report 2020

Stakeholder Engagement

21

Advocacy for impact
We focus on supporting clean mobility
for the global transition towards
reducing climate impact and on
supporting a better understanding
and faster implementation of
circular economy models related to
Umicore activities.
We also engage in national
and international programs andinitiatives that develop longer-term
technology roadmaps.
Well-developed science and facts form the basisof the opinions and positions we take.

CORPORATEENERGY & SURFACE TECHNOLOGIESCATALYSIS

Umicore has also actively participated and supported the creation of
the European Battery alliance (since 2017) and the Battery European
Partnership Association (BEPA) which is the public-private entity thatwill support the European Commission in defining the technology
roadmaps and the research and innovation priorities to be funded in
the 2021-2027 time frame (under the Horizon Europe program).

The World Economic Forum’s Global Battery Alliance was launchedin September 2017. This global public-private partnership comprises
over 40 international organizations to establish a sustainable battery
value chain to power the decarbonization of the world’s energy andtransport systems. Umicore chairs the Executive Board. As part ofthis initiative we maintained a strong effort toward ensuring that thecobalt extraction industry is free of child labor and that alternative
livelihoods for cobalt-dependent households are made available. In
addition, we contributed to a new WEF working group (Circular Car
Initiative) focusing primarily on policy recommendations to makea circular economy model for batteries viable in the future. This
work also explored also the impact of a second life battery market,
material passports and focused on design-for-recycling concepts inthe future automotive and transportation business models.

As concerns on air quality continue to increase, legislation aiming
to minimize the impact of transportation using internal combustion
engines on air quality is becoming increasingly stringent. As a
producer of key components of catalytic emission control systems,
Umicore is a member of various industry associations worldwide
through which, in close collaboration with automotive engineering
companies, we aim to contribute significantly to the portfolio of
ultra-clean transportation options of the future using the mostadvanced emission control technologies. We also engage withauthorities responsible for air quality impact as a result of maritime
transport to further increase the emission purification of ships
and vessels.

Accelerating the transition to a low-carbon society requires driving
down the cost of clean mobility technologies and clean energy.
Electrification of transport and heating processes in industry using
electricity generated from renewable sources are crucial to meetthe goals of the Paris Agreement. Advanced materials represent a
sizeable part of the cost of these clean technologies and are key
enablers of the low-carbon society. The advanced materials pathfrom lab to market is long, risky and capital-intensive, so industry
welcomes risk-sharing initiatives supporting European industrial
leadership. Founded in 2012 by Umicore and other industrial
and research organizations, EMIRI (the Energy Materials Industrial
Research Initiative) works to increase awareness about the role ofadvanced materials in everyday life and in the European economy,
and advocates for stronger EU-level innovation support.

RECYCLING

The European Union is striving to establish a Circular Economy.
Umicore, a frontrunner with our “closed loop” business model,
contributes to numerous conferences and expert working groups.
Specifically, we emphasize the links between a Circular Economy
and responsible sourcing, resource efficiency, waste management
and high-quality recycling. We use our experience to promoteelectromobility as a gateway to a Circular Economy in Europe. In
2020, Umicore chaired the ‘Traction Batteries’ working group of the
Circular Economy Initiativ Deutschland to develop recommendations
for the future in creating a circular economy model for batteries.

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Stakeholder Engagement

22

Materiality
SETTING THE COURSE WITH OUR STAKEHOLDERS FROM 2015 THROUGH 2020

Umicore strives to plan for the best possible
future by remaining in a healthy and competitive
position whilst considering global economic,
social and environmental megatrends.

Our Vision 2015 strategy built on existing competencies, market
positions and our long-standing expertise in metallurgy, materials
science, application know-how and recycling, and combined themwith our closed-loop business model to give us strong growthpotential in clean air, clean energy, vehicle electrification andaddressing resource scarcity.
Horizon 2020, launched in 2015, represents continuity in Umicore’s
strategic choices over the past decade and sets out further
economic, environmental, value chain and society challenges. The
definition of the environmental, value chain and society objectives
for the Horizon 2020 strategy involved a materiality assessment to
identify areas with the potential to turn sustainability into a greater
competitive edge.

VALIDATING GLOBAL MEGATRENDS & ASSESSING VISION
2015 ACHIEVEMENTS

In 2014-15, the executive committee scanned in detail thefour megatrends that underpin Umicore’s growth ambitions. The
results clearly showed that three of the four megatrends were
strengthening: resource scarcity, the need for clean air and vehicle
electrification (see pages 10-11 for more on these megatrends).
The landscape had shifted significantly in photovoltaics, the fourth
megatrend, where a combination of economic and technology
choices led to a less favorable market for Umicore’s higher-end
solutions. Based on the results, the executive committee elected
to focus Umicore’s Horizon 2020 growth ambitions on activities thatare linked to clean air (automotive catalysts), vehicle electrification(rechargeable battery materials) and resource efficiency, ensuring
precious and specialty metals recycling through our closed-loopbusiness model. These activities are therefore at the heart of ourambition to double Umicore earnings by 2020.
In terms of sustainability performance, Vision 2015 yielded positive
results. On the environmental front, we achieved a significant
reduction in CO2 and metal emissions to water and air, surpassing ourtargets in all three cases.

We also made strides in personnel development and stakeholder
engagement. By 2015, the vast majority of Umicore employees hadreceived an annual appraisal and development plan and we had
further reduced exposure levels of our employees to various metals.
Our last People Survey in 2018 confirmed that we had achieved
several of our Horizon 2020 objectives.

In sustainable procurement, we built on our reputation as a pioneerin the field by deploying our Sustainable Procurement Charter andsought out conflict-free certifications for our smelters.
Safety was the sole area where performance was less thansatisfactory. We set ourselves the target of becoming an accident­
free company by 2015 and, while our safety performance improved,
we fell short of this objective.
The challenge for Horizon 2020 is to maintain the progress made,continue focusing on topics such as safety where we fell short ofour goals and to develop goals that enhance Umicore’s competitive
positioning, as follows:● MAINTAIN ACHIEVEMENTS in carbon and metal emissions,preferred employer and stakeholder engagement. Although wewill not set further objectives for these themes, we will continue
to measure and report on the impact and performance whenrelevant from a materiality point of view.
● IMPROVE safety and occupational exposure. We will continue topursue the zero accident and zero excess readings goals.
● SECURE COMPETITIVE ADVANTAGE through sustainable sourcing.
Thanks to the implementation of the Umicore Sustainable
Procurement Charter, we have developed a reputation for ethicalsourcing. This approach is aligned with Umicore’s values andethics but comes at a cost that is only gradually acceptedby customers. Horizon 2020 seeks to leverage this sustainablesourcing approach to generate an enhanced competitive edge.

Umicore Integrated Annual Report 2020

Stakeholder Engagement
IDENTIFYING AND CHOOSING MATERIAL TOPICS FORHORIZON 2020

With the activities linked to clean air, vehicle electrification andrecycling defined as the main levers for Umicore’s growth, we
screened for other topics of material importance to our business
units and to our main stakeholder groups.
In addition to producing the initial list of material topics, basedon the learning from Vision 2015, other potential topics wereidentified through direct feedback from stakeholders, including thefindings of the annual internal business risk assessment, the resultsfrom the 2014 People Survey for all employees, the data fromthe implementation of Umicore’s APS (Assessment of Product andservices Sustainability) tool from 2012 to 2015 and direct questions
submitted to Umicore or its business units by customers.

DEFINITION OF OBJECTIVES AND REPORTING SCOPE

Based on the results of the first two phases, we established thescope of the objectives for Horizon 2020. We clustered our objectives
in four main themes. Three of the Vision 2015 themes were kept
– Economic Performance, Eco-Efficiency and Great Place to Work –but “Stakeholder Engagement” was replaced by “Value Chain andSociety” to highlight our ambition of adopting a more holistic viewof Umicore’s presence in and impact on the overall value chain. This
constitutes Umicore’s main focus through 2020.
The process for defining the environmental, value chain and society
objectives within Horizon 2020 involved a structured dialogue
with the management of each business unit to determine thesocial and environmental topics that could generate a greater
competitive edge.

At corporate level, we screened material issues at peer companies
and customers, as well as potentially relevant topics discussed byinternational business groups, research groups and media.

To ensure a degree of alignment with external expectations, we
also conducted an online stakeholder survey. The objectives weredebated and ratified by the executive committee in February 2016.

All topics identified in the materiality screening phase were used
to produce a draft materiality matrix. The relevance of these topics
for Umicore was assessed by a project team and discussed with
the Environment, Health and Safety (EHS) and Human Resources(HR) corporate teams. The starting matrix, containing about 65
topics, was submitted for further refining with the business unit
management teams.

We also identified a range of issues that Umicore and our
stakeholders identified as important for management purposes,
which should remain part of the report, albeit not part of any specific
Horizon 2020 objective.

Based on the feedback received, a revised version of the Umicore
Group materiality matrix was compiled consisting of top quartile
topics. These 25 topics were the basis of the materiality testing
and for ease of reference were clustered into five categories:
Supply, Products, Operational Excellence, Human Resources, Healthand Safety.

23

VALIDATION

The matrix and its translation into specific environmental, value
chain and society objectives were validated by the executive
committee in February 2016. The economic objectives and growthambitions had been previously validated in 2015.

As a result, we believe that our Horizon 2020 objectives and theinformation that we report in this document represent a balanced
reflection of external requirements and our own internal needs, andenable a balanced appreciation of our performance.
You will find the strategic targets associated with this materiality
assessment on the following page.

UPDATES

Following the 2020 review, the management board confirmed that
Operational Excellence, Supply, Products, Human Resources and
Health and Safety remain Umicore’s material issues. We continue tofollow our Horizon 2020 objectives and the associated materiality indetermining the content and disclosure in this report.
As part of preparations for the next strategic cycle, Umicore reviewed
materiality in 2020. The findings will be used in reporting during the
new strategic cycle, as of 2021.

One example is CO2 emissions: in our Vision 2015 review, we
assessed that the absolute level of our CO2 emissions was dependent
on the energy mix of the countries in which we operate, a roadblock
to pursuing a specific CO2 emission reduction objective. We therefore
chose to pursue energy, operational and materials efficiency instead.
However, many stakeholders expect Umicore to report CO2 emission
and this data remains part of the reporting scope.

The list of material topics was then tested using an online surveythat was sent to 48 stakeholders. These stakeholders – investors,
customers and employees – ranked the topics.

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24

HORIZON 2020 TARGETS

Other topics that were defined as material by at least one stakeholder group during the materiality assessment but are not a specific Horizon 2020 objective (i.e, CO2 or metal emissions) are reported in the statements section of the report.

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25

Giving back to society
UMICORE SEEKS TO CONTRIBUTE TO THE WELL-BEING OF THE COMMUNITIES IN WHICH IT OPERATESAND TO BE A RESPONSIBLE CORPORATION AND GOOD CORPORATE NEIGHBOR
While sites determine the specific focus of their own initiatives,
the general focus is on supporting and promoting a strong social
fabric in the community around the site, with priority given to
educational initiatives.
At corporate level, the emphasis is on projects with an international
scope. Priority is given to initiatives with a clear educational
component and that link with sustainable development (social,environmental and/or technological).

Children in Kolwezi, Democratic Republic of Congo

Educational initiatives are particularly relevantfor Umicore as a technology-oriented businessand provide an excellent way of engaging withyoung people in the community and reinforcing
links between Umicore and its neighborhood.
PARTNERING FOR IMPACT

Umicore supports several causes both financially and by making
time and talent available. Umicore channels resources tosponsorships and donations with each business unit expected
to allocate an annual donations budget based on an internalframework that promotes stable and longer-term commitments,
irrespective of the wider economic environment.
Umicore believes that by empowering Umicore sites for local
sponsorship and donation initiatives, it will make a positive
difference in the communities in which it operates, beyond the
direct benefits generated by employment and local taxes. Umicore’s
support may include contributions in kind and releasing staff to workon community-related projects.

Quality education for all is one of the main objectives of UNICEF,
with which Umicore has had a long-term partnership since 2011,
committing to 2 specific child-education projects in India andMadagascar. Despite impressive achievements and tireless work,
big efforts are still needed to ensure that every child has access toquality education in both countries. UNICEF is doing a remarkablejob by acting in the field, hand in hand with local authorities.
Our partnership translates into very concrete actions such as theconstruction of four school classrooms per year in Madagascar,
benefiting more than thousand boys and girls, and the developmentof an action plan to empower young girls in India and to end
child marriage.

In addition, Umicore is a founding member of Entrepreneurs
pour Entrepreneurs/ Ondernemers voor Ondernemers which pairs
corporate donors with development charities that focus onpromoting entrepreneurship in the developing world. Over theyears, Umicore and Entrepreneurs for Entrepreneurs have supported
work in Bolivia, Cambodia, Congo, Ecuador, Haiti, Mali, Togoand more.
Umicore also aims to contribute to disaster relief wherever it may beneeded, contributing in 2020 to the Red Cross to help the victims of
the bushfires in Australia and to the Doctors without Borders fund tohelp people fleeing violence in Ethiopia.
In 2020, Umicore also co-initiated and was the first contributor to
the Fund for the Prevention of Child Labour in Mining Communities– A Global Battery Alliance Collaboration. This Fund seeks to address
the issue of child labour in DRC’s cobalt mines by strengthening
communities and addressing the root causes of the problem.
Through a multi-sectoral package of interventions, the Fund ­supported projects will contribute towards alleviating poverty,
strengthening social services for children, supporting responsible
production and consumption and getting children out of mines.
In 2020, Umicore also donated ventilator machines to hospitals andsupported hospitals, care homes and home nurses with surgicalmasks and cleaning supplies in their fight against COVID-19.
These combined efforts around the globe support us in our ambition
to be a responsible company and to give back to society.

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COVID-19

26

Umicore’s response to COVID-19
KEEPING OUR BUSINESS RUNNING & OUR EMPLOYEES SAFE DURING THE PANDEMIC
FAST AND DECISIVE RESPONSE

In these exceptional and very difficult circumstances, Umicore’s toppriority has always been the health and safety of its employees
worldwide. As of the end of January 2020, we introduced strict
hygiene and other precautionary measures starting with ourfacilities in Asia, which were the first to be affected.

Registration point at Umicore Hoboken

Within only a few weeks after COVID-19 first broke out in China, thepandemic had spread around the globe, making its way to eventhe most remote communities. It was soon clear that COVID-19 was
more than just a seasonal flu and that the consequences could
potentially be serious.

By the time COVID-19 had reached pandemic
proportions, Umicore was already taking far­reaching measures to protect its employees andensure continuity of production, at a time when
it was impossible to predict exactly how the
pandemic would progress.

Individual and workplace hygiene measures were quickly tightenedat all Umicore sites worldwide, with the aim of reducing thetransmission risk within the organization, keeping our employees
healthy and offering them a safe workplace. Prompted by thefact that contamination could occur in public spaces, Umicoredelivered surgical masks for private use to the homes of all
employees worldwide at a time when they were unavailable on the
open market.
Weekly meetings were held with the management board and a task
force of health professionals to review the COVID-19 situation in all
regions globally and to evaluate the measures in place according toeach local situation. Even when national policies were less stringent,Umicore implemented its strict company policy to keep employees
healthy and safe and to contain further spread of the virus.

ESSENTIAL TO SOCIETY

As far as possible, Umicore also needed to take measures to mitigate
the impact of COVID-19 on its performance. Umicore continued
to operate in order to provide activities and products which areessential for the protection of the vital interests and needs ofthe population.

metals are of great importance in the medical sector. Without our
precious and other non-ferrous metals, no high-tech products canbe produced for healthcare, including cancer treatment, treatmentof arrhythmias, pain therapy and the production of ventilators,
catheters and medicines.
Umicore also provides materials for the early detection andmonitoring of coronavirus. Screening is often based on infrared(IR) thermal imaging optical components to check places where
dense groups are gathered, such as airports and train stations,serving as an additional source of information when people may notshow symptoms.
Following the widespread shutdown of assembly lines by our
automotive customers, Umicore also temporarily shut down 10 ofits 16 automotive catalyst plants. Any disruption in the production
plants caused by the pandemic was because of interruptions tothe supply chain. These sites resumed operations shortly thereafter.
None of the other production sites worldwide was shut down during
the pandemic.

THE RESILIENCE OF OUR EMPLOYEESOur employees have shown great resilience in dealing withthis difficult situation, impacting all aspects of their lives. Theirdetermination, agility and hard work ensured that our working
environment could remain safe and healthy. While adjusting tovery challenging conditions in order to ensure business continuity,
many of our employees also volunteered for a number of charity
initiatives, including the donation of food, masks, money and goods
for children.

The continuation of our production was utterly important becauseof the essential applications in which our products are used. Our

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COVID-19

27

UMICORE THERMAL IMAGING
IN THE FIGHT AGAINST COVID-19
Limiting the spread of the virus by early
detection has been crucial in all phases ofthe pandemic. One method of early detectionis screening with thermal imaging cameras
in densely populated places such as airports,
hospitals, companies and schools.

Thermal imaging cameras can measure temperatures with up
to 0,3°C accuracy and can detect an elevated body temperaturethat could indicate fever. While body temperature is not proofof COVID-19, and while somebody infected with the COVID-19
virus may not always have a higher body temperature, this is
still is an excellent early detection mechanism to help containwidespread outbreaks.

Concatenation of the Tessella ™ technology together with full optic assemblies

From February 2020 until summer, Umicore's Infrared Optics teamsaw a drastic increase in demand for its optics. Globally hundredsof thousands optics were sold for integration into thermal cameras
used in detection of elevated body temperature. The team wasable to absorb the sudden demand peak in demand as Umicore
is, to a large extent, vertically integrated (starting from metals)
and therefore less dependent on third party suppliers. Additionally,
activity levels were increased in challenging circumstances (forexample, introduction of hygiene rules and higher preventive
absences). The ramp-up of Umicore’s newly introduced and cost­effective wafer optic Tessella™ technology supported its customers
in rapidly introducing affordable high-performance systems.

Umicore Integrated Annual Report 2020

PAGE
HEADING
Performance

18
28

Driving economic
performance2020 TARGET
STRENGTHEN LEADERSHIPDOUBLE THE EARNINGSREBALANCE PORTFOLIO

Confirm our strong position andunique offer in clean mobility
materials and recycling.
Double the size of recurring EBIT
compared to 2014 excluding thediscontinued operations.
Ensure a more balanced
contribution of earnings fromour 3 business groups.

KEY RISKS & OPPORTUNITIES
1

Hisashi Kaga, Program Director

New Business Incubator as part of
Umicore’s innovation strategy

Regulatory and legal context

4

Cyber security

2 Sustainable and ethical supply

5 Market

3 Technology and substitution

6

Metal price and availability

SUSTAINABLE DEVELOPMENT GOALS

Umicore’s innovation strategy targets robust business growth for years to come. To further leverage and expand its innovation
capabilities, Umicore has created a new unit called New Business Incubator (NBI). Built on a startup-based operating environmentthat benefits from the support of a global company and sizeable scale organization, NBI is both focused and agile in managing
Umicore’s long-term horizon innovation projects.
UMICORE.COM/STORIES

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Performance

29

Economic Review
ADJUSTED EBITDA

RECORD RESULTS

500

720

599

527

505

1,000

804

Millions of Euros

We selected 3 key performance indicators to measure our success inthe execution of our ambitious Horizon 2020 growth strategy and ourprogress towards our longer-term targets and objectives:

2016
2017
2018
2019
2020

● Adjusted EBITDA gives a clear indication on earnings andprofitability, and is a good proxy for generated operating
cashflows (cashflow from operations before change in cash
working capital).
● As part of our Horizon 2020 strategy we set a 2020 adjusted EBIT
target of doubling the 2014 figure or in other words, reaching€ 500 million.
● We want our investments to create value by generating attractive
returns and set a Group ROCE target of 15%+.

0

ADJUSTED EBIT
Millions of Euros

536

509

410

500

351

514

750
2016
2017
2018
2019
2020

250

Despite the severe disruption brought by the COVID-19 pandemic in
its end-markets, Umicore posted its strongest financial performance
ever, boosted by an exceptional PGM price environment. This
underscores Umicore’s resilience and the merits of its strategy
building on the complementarity of its activities.

0

After a solid performance in the first half of 2020, with astrong result in Recycling offsetting the impact of the automotive
industry downturn on the results of Catalysis and Energy & Surface
Technologies, the second half of the year was marked by a strong
sequential improvement in the Group’s revenues and earnings
driven by continued robust operational performance and buoyant
metal prices in Recycling, as well as strong growth in Catalysis.

RETURN ON CAPITAL EMPLOYED
%

16
14.6

15.1
15.4

Umicore’s earnings and profitability reached new highs with fullyear adjusted EBIT amounting to € 536 million (up 5% year onyear) and adjusted EBITDA amounting to € 804 million (up 7%
year on year). 2020 ROCE for the Group stood at 12.1% (down from
12.6% in 2019), reflecting a lower ROCE in Catalysis and in Energy &Surface Technologies.
Revenues in Catalysis decreased, albeit less than the global car
market, due to Umicore’s strong market position in gasoline
technologies for light-duty vehicles, particularly in China and Europe,
as well as higher sales of heavy-duty diesel and fuel cells catalysts.
Adjusted EBIT declined more than revenues for the full year
reflecting the significant impact of the pandemic in the first half ofthe year.
Revenues of Energy & Surface Technologies reflected the impactof the pandemic as well as lower sales of cathode materials forhigh-end portable electronics and energy storage applications. The
decline in adjusted EBIT was more pronounced reflecting significant
negative operating leverage and the impact of an unfavorable
pricing environment for cathode materials due to substantial
industry overcapacity in China.
Recycling doubled its adjusted EBIT compared to the previous year,
driven by strong growth across business units, reflecting high metal
prices, high activity levels despite the COVID-19 crisis and favorable
trading conditions.

14
12.6

12

2016

2017

2018

2019

12.1
2020

Umicore Integrated Annual Report 2020

Performance

30

CATALYSISADJUSTED EBITDA
Millions of Euros

In 2020, revenues in Catalysis decreased by 7% year on year,
amounting to € 1,364 million, against the backdrop of an 18%
contraction in the global car market. Umicore’s revenues sufferedmuch less than the global car market, due to the company’s
strong market position in gasoline technologies for light-duty
vehicles, particularly in China and Europe. Revenues were further
supported by higher sales of Umicore’s catalysts for heavy-duty
diesel applications and fuel cells catalysts.

200

2016
2017
2018
2019
2020

234

264

237

224

203

400

0

Adjusted EBIT in Catalysis amounted to € 154 million, down 17%
year on year due to the significant negative operating leverage inthe first half of 2020 as a result of the COVID-19 pandemic impact
on the automotive industry. In the second half of the year adjusted
EBIT increased significantly, both sequentially and compared to thesame period in the prior year, boosted by a sharp volume recovery in
Automotive Catalysts and savings in manufacturing and SG&A costs.
For the full year, adjusted EBITDA was € 234 million, down 11%. ROCE
decreased to 9.6% (from 13.6% in 2019) due to the combination oflower returns and a higher capital employed base. Rising PGM prices,
particularly in the second half of the year, increased the working
capital needs in the business group .

ADJUSTED EBIT

154

185

168

165

200

152

Millions of Euros

2016
2017
2018
2019
2020

100

0

The global automotive industry was significantly impacted by the
COVID-19 pandemic and declined by 18% for the full year, with amarked contrast between the first and the second half of the year.

RETURN ON CAPITAL EMPLOYED (ROCE)
%

20

16.6

16.3

15

14

13.6
9.6

10
5

2016

2017

2018

2019

2020

In the first half of 2020, car OEMs had to shut down their production
plants and close their dealerships in several key regions as a resultof government imposed lock-downs. Global car demand started topick up again in the second half of 2020, albeit with discrepancies
between the regions in terms of timing, speed and intensity of
the recovery.

After a year-on-year contraction of 35% in the first half, carproduction in the second half grew by more than 40% sequentially(yet declined by 2% compared to the second half of 2019), with China
being the clear driving force behind the global recovery. Other key
markets started to pick up later and more gradually and still recorded
negative growth for the second half of the year.
Against this extremely challenging backdrop, revenues and adjusted
EBIT for Automotive Catalysts were only moderately below the levelof the previous year as the business unit demonstrated tremendous
resilience. It benefited disproportionately from the sharp market
recovery in the second half of the year and outperformed the carmarket both in volumes and revenues, due to its strong position in
the Chinese and European light-duty gasoline markets. In addition
to the positive operating leverage created by the strong sales
recovery, earnings were supported by cost savings resulting fromrecent footprint adjustments and operational excellence initiatives inmanufacturing and SG&A.
In China, where car production for the full year was down 5%,
Umicore’s revenues were well up, reflecting Umicore’s exposure to
the growing penetration of direct injection gasoline platforms which
require particulate filters under China 6 emission norms.
In Europe, Umicore’s sales volumes and revenues were down lessthan the car market due to the company’s strong market position ingasoline catalyst technologies.
In North America, sales performance was slightly lower than themarket as a result of an unfavorable customer mix, while volumes
in South America outperformed a heavily contracting car market.

Umicore Integrated Annual Report 2020

Performance

Umicore’s revenues in Japan and Korea evolved in line withthe overall market. In South-East Asia, volumes and revenues
substantially outperformed the market, driven by market sharegains in India as Umicore qualified for new platforms compliant with
Bharat 6 regulation.
The sharp economic contraction and the lower industrial production
induced by COVID-19 also had a significant and a more prolonged
impact on the heavy-duty diesel market segment in 2020 except
in China. Despite this challenging context, Umicore grew volumes
and revenues in this market segment, due mainly to strong demandin the second half of the year for its China V technologies and afavorable customer mix.

Umicore’s stationary catalyst activity was substantially impacted
by the disruptions caused by COVID-19, in particular in its power,
chemicals and oil refining end-markets where several large projects
were postponed.
Revenues and earnings for Precious Metals Chemistry declined
compared to the previous year, despite stronger demand for
Umicore’s fuel cells catalysts in Korea. The business unit was hit in
the first half of the year by the severe downturn in the automotive
industry and the related impact on demand for its inorganic
chemicals. Demand for Umicore’s homogeneous catalysts used inpharmaceutical and fine chemical applications remained stable.

31

Against a backdrop of accelerating demand for Umicore’s state-of­
the-art catalysts for proton exchange membrane (PEM) fuel cells andto enable this activity to pursue its growth strategy, Umicore decided
to house it in a new business unit Fuel Cells & Stationary Catalysts
within the Catalysis business group. As of 1 January 2021, thisbusiness unit combines both Umicore’s fuel cell catalyst activities,
previously included in the business unit Precious Metals Chemistry,and Umicore’s stationary catalyst activities, previously part of theAutomotive Catalysts business unit. This change has no reporting
impact on the Catalysis business group level. The new business unit
will build on a strong portfolio of technologies to grow globally bothin PEM fuel cells and stationary catalysis.
To learn more, see our story aboutUmicore fuel cell catalysts(p. 37).

Umicore Integrated Annual Report 2020

Performance
In 2020, revenues in Energy & Surface Technologies amounted to€ 1,045 million, down 15% compared to 2019, driven by the negative
impact of the pandemic on several end-markets and reflecting much
lower sales of cathode materials for high-end portable electronics
and energy storage applications. After a severe contraction of
the global EV market in the first half, Umicore’s sales volumes ofcathode materials for EVs grew in the second half of the year, bothsequentially and year on year. The integration of the cobalt refining
and cathode precursor activities acquired in Finland at the end of2019 also helped mitigate the decline in the business group’s fullyear revenues.

ENERGY & SURFACE TECHNOLOGIESADJUSTED EBITDA
Millions of Euros

2016
2017
2018
2019
2020

271
186

132

250

198

323

500

As expected and in line with guidance, adjusted EBIT amounted
to € 75 million, 59% below the 2019 levels. The underutilized
capacity in Umicore’s Chinese greenfield cathode material plant, in
combination with higher fixed costs related to recent and ongoing
expansions, resulted in a significant negative operating leverage.
In addition, the unfavorable pricing environment in China, due tothe substantial excess capacity in that region, severely weighed on
margins. Adjusted EBITDA was € 186 million, down 31% year on year.
2020 ROCE further reflected the higher investments in Rechargeable
Battery Materials and was 3.4% (versus 9.1% in 2019) .

0

ADJUSTED EBIT
Millions of Euros

400

75

82

141

200

183

257

2016
2017
2018
2019
2020

Revenues and volumes in Rechargeable Battery Materials were
down compared to 2019 as higher sales of NMC cathode materials
used to power EVs were more than offset by lower sales of highenergy LCO cathode materials for high-end portable electronics
and reduced demand for NMC cathode materials used in energy
storage applications.

0

RETURN ON CAPITAL EMPLOYED (ROCE)
%

20
11.7

14.4

17.5

10
0

9.1
3.4

2016

2017

2018

2019

2020

The global EV market was profoundly affected by the COVID-19
pandemic in the first half of the year and rebounded in the second
half of the year, primarily driven by strong EV growth in Europe
and, later in the year and to a lesser extent, by increasing EV sales
in China. For the full year 2020, EV sales grew 50% to 3.4 million
vehicles. This translated in an addressable market for cathodematerials producers of some 137 GWh, or a 17% year-on-year growth.

32

For the full year, Umicore’s sales volumes of cathode materials going
into EVs grew less than battery demand in GWh as the cathodematerials industry, including Umicore, could not immediately benefit
from the rebound in battery demand in the second half of theyear because of the existence of excess inventories in the supply
chain. These excess inventories were largely depleted by year­
end. Excluding this inventory effect, Umicore’s sales volumes grewbroadly in line with EV battery demand. As anticipated, Umicore’ssales volumes for EVs grew in the second half of the year, bothsequentially and year on year.
In China, battery demand for EVs remained bleak until the summer
and turned positive in the second half of the year, albeit compared toa depressed second half in 2019. After years of strong year-on-year
growth, culminating with a more than doubling of demand in 2018
and leading to massive capacity additions in the battery materials
value chain, demand for cathode materials for EVs has lagged theanticipated growth in 2019 and 2020. This slowdown has resulted insignificant excess capacity and pressure on the pricing environment.
Umicore is not immune to this effect and its performance in theregion was also impacted by underutilized capacity in its Chinese
greenfield cathode materials plant.
In Europe, battery demand for EVs recorded strong momentum
throughout 2020, in particular in the second half of the year, anddoubled compared to 2019. This growth was driven by new models
launched by car OEMs to comply with the more stringent CO2
directive which kicked in in 2020, local incentives for EV buyers
in several countries as part of their recovery plans and moreenvironmentally-friendly choices by consumers when purchasing a
new car. Umicore sales of cathode materials in the region grew inline with the market trend. Umicore is currently using its capacity in
Korea to serve that growth, until its new greenfield plant in Nysa,
Poland will start commercial production. The Nysa plant will be
the first industrial cathode materials production plant in Europe andits construction is progressing well with commissioning expected
towards the end of the first half of 2021. Once production lines
will have gone through customers’ qualifications, initial commercial

Umicore Integrated Annual Report 2020

Performance
production volumes are expected in the fourth quarter of 2021, withthe full ramp-up of volumes taking place in 2022.
While having production capacities in three different locations(Korea, China and Europe) involves higher capital investments andoperating costs than for most competitors, Umicore is convincedthat having a presence in multiple key markets will prove a strong
competitive differentiator over time as battery and car OEMs will
increasingly require electric car components to be produced locallyto minimize their CO2 footprint.
The push towards electric mobility is stronger than ever, driven by
regulatory initiatives to protect air quality and reduce greenhousegas emissions in several regions. Europe recently reconfirmed its
ambition to achieve zero-emission mobility and remains committed
to increasingly more stringent CO2 emission targets. The EU
ambitions and commitments to a cleaner future imply rapid growth
in GWh of battery demand in the coming years. In China, the Ministryof Industry and Information Technology announced an extension of
the NEV subsidy plan from 2020 until end 2022. It also confirmed its
long-term commitment to achieve a target penetration rate of 20%
NEVs in 2025 and 50% by 2035. Although it will take a while before
the current excess capacity in China is fully utilized, these targets will
boost electrification in the coming years.

Revenues for Cobalt & Specialty Materials were below the level ofthe previous year, reflecting the severe impact of COVID-19 on theactivity levels in most of the business unit’s end-markets.
Although demand for cobalt and nickel chemicals and activity levelsin the distribution activities gradually recovered in the second half ofthe year, this could not compensate for the volume losses incurredin the first half of 2020. Order levels for tool materials declined
substantially year on year, impacted by reduced activity levels in
the construction and industrial manufacturing sectors throughout theyear. The reduced demand levels for cobalt and nickel chemicals also
resulted in lower throughput and contribution from the refining andrecycling activities. Revenues from carboxylates remained stablecompared to the previous year.
As part of the ongoing assessment of its global production footprint,
Umicore announced in September its decision to consolidate thecobalt refining and transformation activities in Kokkola, Finland andNashville, US in order to achieve synergies and strengthen the unit’s
competitive position. The transfer of the activities is on track andis anticipated to be finalized by mid-2023. Earlier in the year, thebusiness unit closed its cobalt, nickel and rhenium refining andrecycling plant in Wickliffe, Ohio.

33

As of 1 January 2021, the business unit Electroplating has beenrenamed Metal Deposition Solutions. In addition to the activities
previously included in Electroplating, the new business unit also
includes the thin film products business, which was previously
part of the Electro-Optic Materials business unit and which
manufactures evaporation materials and sputtering targets for the
microelectronic and optical industries, with activities in Liechtenstein
and Taiwan. The purpose of this transfer is to bring together
businesses serving similar applications and customers in electronics
and semiconductors.
Revenues for Electro-Optic Materials decreased compared to theprevious year. This was mainly due to lower demand for highpurity chemicals used in optical fibers as a result of a delay in
5G-deployment. Revenues increased both for substrates and forinfrared optics, following the successful launch of innovative new
products and services.

Revenues for Electroplating were slightly higher compared to theprevious year reflecting primarily higher demand for advanced
precious metal-based electrolytes used in portable electronics. This
more than offset the impact of lower demand for precious and basemetal compounds as a result of the COVID-related slowdown in thejewelry and industrial end-markets.

Umicore Integrated Annual Report 2020

Performance

34

RECYCLING
ADJUSTED EBITDA
Millions of Euros

2016
2017
2018
2019
2020

250

195

189

187

250

425

500

The Recycling business group delivered a record performance in
2020, posting an increase in revenues of 23% to € 836 million
and nearly doubling its adjusted EBIT to € 362 million. This stellar
performance was driven by strong growth across all business units,reflecting high metal prices, high activity levels despite the COVID-19
crisis and favorable trading conditions. Adjusted EBITDA amounted to€ 425 million, an increase of 70% compared to 2019. These record
earnings drove ROCE up to 72% (versus 39.3% in 2019).

0

Revenues for Precious Metals Refining increased significantly year
on year and adjusted EBIT more than doubled, reflecting primarily
higher received metal prices, particularly for platinum group metals,
and to a lesser extent a supportive supply environment and higher
processed volumes.

ADJUSTED EBIT
Millions of Euros

2016
2017
2018
2019
2020

188

135

128

125

250

362

500

The performance of the business unit was boosted by a favorable
metal price environment. Average received metal prices were well
above the level of the previous year for most precious and platinumgroup metals, in particular rhodium. In a context of tight supply andgrowing demand from the car industry as a result of increasingly
more stringent emission norms, the rhodium price surged from thehigh levels already reached at the end of 2019. The business unit also
benefited, to a more moderate extent, from the price increases ofgold, platinum and palladium as it previously hedged a significant
portion of its exposure to these metals.

0

RETURN ON CAPITAL EMPLOYED (ROCE)
%

100
50
0

72
26.3

25.8

27.9

2016

2017

2018

39.3

2019

The overall supply of industrial by-products remained favorable overthe period, despite the temporary shutdowns of certain mining
activities in response to COVID-19. Also the supply of end-of-lifematerials remained strong and the Hoboken plant benefited from anample inflow of highly complex spent automotive catalysts.

The business unit continued to leverage its unique recycling
technology to efficiently treat such highly complex materials.
Processed volumes in 2020 were higher compared to 2019 as aresult of the process improvements which were introduced in 2019
and which required a longer than usual shutdown during that year.
The higher processed volumes, in combination with the valuable
mix, further supported the performance of the Hoboken plant.
As part of its endeavors to continuously drive improvement in
the robustness of the Hoboken operations and the overall safety
performance of the plant, a multi-year investment program has
been launched with a priority on fire prevention and emergency
planning. In parallel, Umicore continues with the execution of theinvestment program aimed at further reducing emissions.
Revenues for Jewelry & Industrial Metals increased compared to theprevious year. The impact of lower demand from the jewelry andindustrial sectors was offset by a substantial increase in orders for
precious metal based investment products as well as strong demandfor platinum engineered materials. The revenues and margins of thebusiness unit were further supported by a higher contribution fromthe refining and recycling activities, which benefited from robust
demand as well as a favorable metal price environment, in particularfor gold.
The earnings contribution from Precious Metals Management
substantially increased compared to 2019 as the business unit
benefited from high metal prices and exceptionally high metal pricevolatility which resulted in favorable trading conditions. In addition,
demand for gold and silver investment bars was strong.

2020

Umicore Integrated Annual Report 2020

Performance
FINANCIAL REVIEWFINANCIAL RESULT AND TAXATIONNet financial charges totaled € 104 million, up from € 83 million
in the same period last year due to higher net interest charges
resulting from a higher average financial debt as well as fees
and costs linked to the issuance of new debt instruments. Thesehigher charges were partly offset by lower forex costs and lower
discounting costs related to provisions. The adjusted tax charge forthe period amounted to € 103 million, stable compared with thesame period last year despite substantial changes in the underlying
regional result distribution. Both the adjusted taxable base for thegroup and effective group tax rate were stable year on year. The
latter reached 24,2%, compared to 24,7% last year. Taking into
account the tax effects on EBIT adjustments, the net tax charge
amounted to € 59 million. The total tax paid in cash over the periodamounted to € 79 million, which is lower than last year.

CASHFLOWS

Cashflow generated from operations, including changes in net
working capital, amounted to € 603 million, compared to€ 549 million last year. After deduction of € 436 million ofcapital expenditures and capitalized development expenses, thiscorresponds to a free cash flow from operations over the periodof € 167 million, compared to a cash drain of - € 39 million in
2019, demonstrating the resilience of the Group’s cash flows in achallenging market context. Adjusted EBITDA was € 804 million
compared to € 753 million last year, corresponding to an adjusted
EBITDA margin for the Group of 24.6%, up versus 22.1% in 2019
driven by the strong performance in Recycling. Net working capitalfor the Group increased by € 104 million since the end of 2019.
Working capital needs increased in Catalysis and, to a lesser
extent, in Recycling due to strong year-on-year price increases inprecious metals, PGM’s in particular. Energy & Surface Technologies
reported a decrease in working capital needs year on year due
to subdued sales volumes and metal prices. Capital expenditures
totaled € 403 million, compared with € 553 million last year. This
reduction reflects the decision taken shortly after the start of the
COVID-19 outbreak to postpone selected investment projects withthe exception of safety and license to operate investments, awaiting
more clarity on market outlook. Taking into account the continued
investment in Rechargeable Battery Materials’ greenfield plant in
Poland, Energy & Surface Technologies accounted for close to twothirds of the Group’s capex. Spending for this strategic project willcontinue into 2021. Capitalized development expenses amounted to€ 32 million compared to € 35 million last year. The net cash outflow
related to the exercise of options and the purchase of treasury shares
to cover option plans and share grants was € 27 million, slightly
lower than in the previous year.

FINANCIAL DEBTNet financial debt at 31 December 2020 stood at € 1,414 million,
slightly down from € 1,443 million at the end of 2019. This
corresponded to 1.76x adjusted EBITDA which is lower than theratio of 1.92x at the end of 2019. In the first half of the year,
Umicore further diversified its sources of funding by completinga € 500 million convertible bond offering due in 2025 and by
concluding a € 125 million 8-year loan with the European Investment
Bank. Prior to that, in response to the COVID-19 outbreak, Umicore
had already increased its undrawn committed bank lines, ensuring
itself of ample liquidity to pursue its strategy. Group shareholders’equity was € 2.557 million at the end of the year, including the valueof the convertible bond’s conversion rights, corresponding to a net
gearing ratio (net debt / net debt + equity) of 35,0% (35.2% at theend of 2019).

EBIT ADJUSTMENTS

Adjustments had a negative impact of € 237 million on EBIT in 2020of which € 72 million were already recognized in the first half. Of thistotal, € 112 million were related to Energy & Surface Technologies.
The latter including € 56 million charges linked to the restructuringinitiatives in Cobalt & Specialty Materials, a resulting € 34 million
impairment charge linked to the rightsizing of permanently tied
up cobalt inventories in that same business unit as well as a
€ 15 million impairment in Rechargeable Battery Materials due toa site reconfiguration in Korea. Catalysis accounted for € 57 million
charges of which € 55 million were already recognized in thefirst half, linked mainly to the consolidation of the North American

35

automotive catalyst production and some impairments including
selected capitalized development costs and license agreements. In
Recycling, a charge of € 51 million was accounted for, comprising a€ 50 million provision to cover costs related to the intention to buy
houses closest to the Hoboken plant and create a green zone. These
costs comprise an estimated purchase value of the houses (basedon third party appraisal) to be demolished as well as an estimate ofdemolition and landscaping costs. Concertation with the city council
and residents is ongoing and might result in adjustments to this costestimate. Finally, EBIT adjustments also include € 14 million charges
linked to restructuring, property, plant and equipment and goodwill
impairments in Element Six Abrasives, a JV in which Umicore has a
40% stake. Of the total adjustments, € 147 million have a non-cash
nature. Restructuring-related charges account for € 128 million of
the total, environmental items for € 56 million and selected asset
impairments for € 45 million. After tax, the adjustments to net groupearnings over the period correspond to - € 192 million.

METAL HEDGING

Over the course of 2020 and early 2021, Umicore entered into
additional forward contracts, thereby securing a substantial portionof its structural future price exposure to certain precious metals
and providing increased earnings visibility. For 2021 and 2022,
approximately two thirds of the expected gold and palladium
exposure and somewhat less than half of the expected silver
exposure have been locked-in. In addition, close to one third of the
expected platinum exposure for 2021 has been hedged. In spite of
the absence of a liquid futures market, Umicore entered in recent
months into forward contracts locking in a minority of its expected2022 and 2023 rhodium exposure.

Umicore Integrated Annual Report 2020

Performance

36

INVESTING IN UMICORE€ 1.34

Investing in Umicore is an investment inproducing materials for a better life – our mission– and supporting our growth strategy. We have ahealthy capital structure with funding headroom
to execute our growth strategy while remaining
within the equivalent of an investment gradecredit status territory.

EARNINGS PER SHARE

DENOMINATOR ELEMENTS
2020
Total shares issued as at 31 December

246,400,000

of which treasury shares

5,733,685

of which shares outstanding

240,666,315

Weighted average number of outstanding shares

240,589,550

Potential dilution due to stock option plans

1,183,525

Adjusted weighted average number of outstanding shares 241,773,075

THE UMICORE SHAREOver the course of its Horizon 2020 strategy,
Umicore delivered strong and sustainable
shareholder returns through growth of its
intrinsic value and dividend distribution.
Over the 2015-2020 period, Umicore substantially outperformed theStoxx Europe 600 Chemicals index with a share price performanceof 140.2% versus 60.6% for the index. The corresponding annualized
share price performance amounts to 15.7% per year over the
5-year period.

Umicore shares are listed on the Euronext stock exchange.
INDEXES & RATINGS

The total number of outstanding and fully paid-up shares, and thenumber of voting rights, are 246,400,000. During 2020, no newshares were created as a result of the exercise of stock options withlinked subscriptions rights. During the year Umicore used 1,024,435
of its treasury shares in the context of the exercise of stock options
and 66,430 of its treasure shares for shares granted. In the course of2020, Umicore bought back 1,200,000 own shares. On 31 December
2020, Umicore owned 5,733,685 of its own shares representing
2.33% of the total number of shares issued as of that date.

SHAREHOLDER RETURNSEURONEXT

BEL20; Euronext 100

ECPI

EMU Ethical Equity; Euro ESG Equity; World ESG Equity

FTSE RUSSELL

FTSE4GOOD; FTSE Environmental Opportunities 100

ISS OEKOM

PRIME ESG Rating

MSCI

ACWI Sustainable Impact Index, ACWI Low Carbon Target,
Belgium IMI Index, EMU ESG Enhanced Focus Index, Global
Pollution Prevention Index, World ESG Leaders Index, AAA
ESG Rating (Leader)

SOLACTIVE

Solactive Europe Corporate Social Responsibility Index

STOXXSTOXX Europe 600; STOXX Europe Mid 200

SUSTAINALYTICS

29.1 (Low Risk)

VIGEO EIRIS

Benelux 20; Eurozone 120

Umicore aims to create value for its shareholders. There is no fixed
pay-out ratio.
Umicore’s Supervisory Board will propose a gross annual dividendof € 0.75 per share for the full year 2020. This compares to a full
dividend of € 0.375 per share paid out for the financial year 2019.
Taking into account the interim dividend of € 0.25 per share paidout on 25 August 2020 and subject to shareholder approval, a grossamount of € 0.50 per share will be paid out on 5 May 2021.

For more, visit:

UMICORE.COM/INVESTORSThe Supervisory Board has decided that starting in 2021, the interim
dividend will be a fixed amount of € 0.25 per share. The dividend
policy of a stable to growing dividend remains unchanged.

Umicore Integrated Annual Report 2020

Performance
UMICORE FUEL CELL CATALYSTS

Typically batteries and fuel cells can be found working together,where a battery will store the electricity generated by a fuel cell andthe total energy output will be the combined output from the twoenergy sources.

At Umicore, our tailor made Proton Exchange
Membrane (PEM) fuel cell catalyst provide
superior performance to accelerate thedevelopment of fuel cells, boasting longer
ranges, shorter refueling times and higher
energy density.

Open fuel cell stack with Umicore proton-exchange membrane catalyst

Around the world, the way energy is managed is changing, moving
away from fossil fuels and towards more sustainable energy
solutions, including for cleaner mobility. Umicore provides clean-techsolutions for all vehicle types including cathode materials used inlithium-ion batteries for electromobility and electro-catalysts for fuelcell vehicles.
A fuel cell is like a battery in that it generates electricity from anelectrochemical reaction, and is built with an anode and a cathode.
However, fuel cells do not run down or need recharging. The maindifference between a battery and fuel cell is that a battery storesenergy, while a fuel cell generates energy. A fuel cell takes anenergy source (the “fuel”), such as hydrogen, and an oxidizing agent,oxygen from air, and through its reaction converts it into electricity.
In doing so, as long as air and fuel are supplied, a fuel cell can run
indefinitely. The assembly of fuel cell components is referred to as a
stack, which is the power generation unit of a fuel cell system.

In the move towards cleaner mobility, and with the technology
maturity now demonstrated, fuel cell drivetrains are gaining
momentum in the trend towards electrified vehicles. Since 2019,
Umicore has recorded strong growth in the demand of fuel cell
catalysts used in the transportation segment. To support the rapid
growth of our automotive customers we have created a new andpromising business unit for fuel cell and stationary catalysts and areready to ramp up our production.
With 30 years of experience developing PEM fuel cell catalysts,
covering both anode and cathode electrode applications, Umicore’s
competitive products are key components of commercial stackplatforms found on the road today. We are present in most of thedevelopment platforms of the biggest OEMs, and our R&D centers
and industrial production activities both in Germany and South Korea
are well placed to globally serve our automotive customers.
We expanded our production capacity in Korea, close to Umicore’s
technology development center near Seoul, to support the growthof Hyundai Motors Group and we will also support our otherautomotive customers allowing further expansion to cover future
growing demand.

37

Umicore’s fuel cell material solutions are also applicable to waterelectrolysis, the cleanest production of low-carbon hydrogen.
Looking ahead, we share the vision that clean hydrogen has a
key role to play in decarbonizing the energy, mobility and industry
systems. Scaling up of hydrogen technologies is direly needed toachieve competitiveness across many applications and reach its full
deployment potential by 2050. Hydrogen technologies are therefore
crucial to climate change mitigation while delivering on economic
value creation and generating massive job opportunities.
Umicore also closes the loop for fuel cells, recycling end-of-life andproduction waste in our Precious Metals Refining operations, a world
market leader in eco-efficient recycling of complex waste streams
containing precious and other non-ferrous metals. At Umicore, after
recovering precious metals, we are able to convert these scarce
metals back into advanced materials for new fuel cell technology.
Today, fuel cell vehicles are already circulating on roads all overthe globe though in limited numbers. Market deployment of fuelcell vehicles will intensify provided that a refueling infrastructure
is sufficiently developed. Electric buses and energy-intensive heavy­
duty applications such as trucks will strongly rely on fuel cell
technology. On the road to 2050, fuel cell electric vehicles will
dominate long range and medium-high duty applications.
Fuel cells have a clear role to play in the engine and energy mix
providing one of the various technologies required towards zero
emissions. They provide the best of both worlds by combining theenvironmental advantages of battery drivetrains with the driving
range and refueling time of internal combustion engines. Therefore,
as a complementary technology, Umicore’s fuel cell catalysts are partof our unique technology portfolio offering the full spectrum of clean
mobility materials.
For Umicore products and services, visit:
UMICORE.COM/INDUSTRIES

Umicore Integrated Annual Report 2020

PAGE
HEADING
Performance

19
38

Value chain
and society
2020 TARGETSUSTAINABLE SUPPLYSUSTAINABLE
PRODUCTS & SERVICES

Secure materials supply
and promote our closed
loop business offer.
Develop products that create
sustainable value for ourcustomers and society.

KEY RISKS & OPPORTUNITIES
1Regulatory and legal context

2 Sustainable and ethical supply

5 Market8

Climate and environment

3 Technology and substitution

Jens Le Comte virtually receiving the Prebes Award

Prebes AwardSUSTAINABLE DEVELOPMENT GOALSIn November, our colleague from the Cobalt & Specialty Materials site in Bruges, Jens Le Comte, won the Prebes Award for histhesis to obtain his degree for "Prevention Advisor Level 3". Each year, Prebes, a Belgian non-profit organization focused on health,prevention and the environment, rewards a number of final works that contribute to improving or promoting well-being at work.
Jens earned the award for his thesis on the CO2 fire extinguishing system.
UMICORE.COM/STORIES

Umicore Integrated Annual Report 2020

Umicore Integrated Annual Report 2020

Performance

39

Value chain and society
Human rights are fundamental
to Umicore.
We want Umicore to be a leader inproviding and creating material-based
solutions to contribute to fundamental
improvements in the quality of life.

Human rights within the Umicore organization are enshrined in
The Umicore Way which is the cornerstone of everything we doat Umicore, representing our organization’s values. All Umicore
personnel commit to upholding these values under the following
key statement: “ We uphold fundamental human rights andrespect those rights in conducting our operations throughout theworld.We engage with the communities around our operations
and communicate transparently with our stakeholders”. Our successis measured in our ability to provide environmental and ethicalsourcing benefits of scarce raw materials and to deliver products andservices that create sustainable value for our customers and society.
Umicore’s Horizon 2020 objectives reflect a proactive view of our rolein the overall value chain.
Upstream, we have placed greater emphasis on the managementof key raw materials supply requirements. We have also sought
to ensure that Umicore’s efforts in the field of ethical sourcing can
generate a competitive edge for the company.
Downstream, we have a strong portfolio of products and services
that offer specific sustainability advantages to our customers andsociety. We use our long-standing and growing experience in ethicalsourcing and sustainably managing raw materials to advocate forbetter practices.
Umicore and IndustriALL Global Union renewed their Global
framework Agreement on Sustainable Development in 2019, for
4 years. The agreement reaffirmed Umicore’s commitment tosustainable development, embracing economic, environmental andsocial objectives.

More specifically, it covers human rights, including collective
bargaining and equal opportunities, safe and healthy working
conditions, environmental and supply chain matters and digitaltransformation. All parties have undertaken to pursue theconstructive dialogue they initiated in 2007 to ensure successful
implementation of the agreement.
To ensure our activities are conducted in line with the Umicore Way,
we have adopted policies including the Umicore Code of Conduct,
Human Rights Policy, and our Sustainable Procurement Charter.
Umicore fully supports the United Nations Universal Declarationof Human Rights. We are committed to uphold fundamental
human rights and respect those rights in conducting our operations
throughout the world.
This commitment applies to all Umicore employees, all subsidiaries
and joint ventures where we have operational control and all
subcontractors working on our sites.
Our success depends on a relationship of trust and professionalismwith employees, commercial partners, shareholders, government
authorities and the public. These principles are embedded in our
Code of Conduct which sets the framework for ethical behavior andrespect of the rule of law, including regarding anticorruption andbribery. It incorporates whistle blowing procedures (Integrity Hotline)
and supports our commitment to equal opportunities and diversity.
All employees have access to, and are required to comply with, theCode of Conduct and The Umicore Way.

Umicore Integrated Annual Report 2020

Performance
SUSTAINABLE & ETHICAL SUPPLY
We aim to leverage our sustainability approachin the value chain, both upstream with our
suppliers and downstream with our customers.
As a global materials technology and recycling group, we purchaseand recycle minerals and metals for use in a wide range of products
and technologies.
For our operations to function, we need raw materials,
transportation, energy and other goods and services.
Sustainable procurement is a key driver in Umicore’s Horizon 2020
aspiration to turn sustainability into a greater competitive edge.
Our Sustainable Procurement Charter mitigates the supply chain
risks, including human rights. The Charter outlines our commitment
to fair dealing, transparency and communication, health and safety,
and our efforts to include smaller sized and local suppliers in
our procurement processes wherever possible, to support local
economies where we operate.
We are determined to ethically and sustainably secure a competitiveedge in our approach to critical raw materials. To avoid misuseof precious metals and minerals to finance armed conflict, cause
human rights abuses, draw upon forced or child labor or support
corruption and money laundering, we ensure that conflict minerals
procurement is in line with Umicore’s values through our policy for
Responsible global supply chain of minerals from conflict affected
and high-risk areas which is based on the OECD guidelines.

Umicore also continues to ensure that gold and silver production
operations are certified as conflict-free, and that our cobalt,
platinum, palladium and rhodium are sourced responsibly. Our
customers are increasingly requesting such guarantees and we
provide them with the necessary documentation to assure theconflict-free status of our products.

40

Umicore Responsible global supply chain of minerals from conflict
affected and high risk areas available at:
UMICORE.COM/RESPONSIBLE-SUPPLY-CHAIN-POLICY

Umicore sites undergo audit and certification for the London Bullion
Market Association (LBMA), the Responsible Jewellery Council (RJC)
and the Responsible Minerals Initiative (RMI). For more informationon our many accreditations see note V2(p. 182).
We expect our suppliers to be committed to business integrity, topromote the principles of sustainable procurement in their supply
chain, to be compliant with local environmental laws and to respect
international human rights law on their own sites and from theirown suppliers, including to abolish child and forced labor andeliminate discrimination.
Overall, we have over 18,000 suppliers worldwide to which we paid
over € 18.7 billion (including the metal content of raw materials)
in 2020. Umicore’s Purchasing & Transportation teams worldwide
manage indirect procurement processes for energy and other goods
and services (accounting for usually around 10% of our spend)
while the metal-bearing raw materials are purchased directly by thebusiness units (accounting for the vast majority of our spend).

Umicore Sustainable Procurement Charter available at:
UMICORE.COM/SUSTAINABLE-PROCUREMENT-CHARTER

In 2020, EcoVadis continued to assess indirect procurement streams
for Umicore.

Umicore Integrated Annual Report 2020

Performance
SUSTAINABLE COBALT
For over a century Umicore has been a world leader in cobalt
products, used in many applications, from tooling to rechargeable
batteries for electric cars.
Some reserves of cobalt ore are in regions fraught with challenges,
giving rise to unethical practices such as forced labor, poor healthand safety conditions, child labor and corruption.
For us, sustainable procurement of cobalt means considering
economic, environmental and social performance of our suppliers,
and the social and environmental impact of the supply, in thepurchase of materials. To source cobalt, we have implemented apioneering Sustainable Procurement Framework for Cobalt and were
the first to obtain external validation for our approach in this area.
The various sustainability aspects of the battery supply chain
include the conditions under which raw materials are extracted andprocessed. Umicore is aware of the sustainability risks that are linked
to the sourcing of cobalt particularly in the Democratic Republicof Congo. Often, artisanal and small-scale mining (ASM) activities
are linked to issues such as human rights abuses, child labor, poor
occupational health and safety conditions. In 2004 Umicore decided
to exclude cobalt obtained from ASM from its supply chain.
Umicore is the first company in the world to have introduceda Sustainable Procurement Framework for Cobalt and to obtain
external validation for its ethical procurement approach in this area.
It aims to minimize the risk of any connection between the cobalt
in its supply chain – and subsequently that of its customers – andhuman rights abuses or unethical business practices. Building on
the specific approach to sustainable and ethical cobalt sourcing that
Umicore introduced in 2004, the framework has evolved to address
specific risks linked to unethical mining practices, such as childlabor and poor health and safety conditions. Regular independent
audits ensure that Umicore’s supply chain remains compliant withthese policies.

To ensure the traceability of materials in our supply chain, we
carry out detailed research and risk assessments of our suppliers.
This includes visiting plants, screening policies and procedures and,if required, developing improvement programs. In 2020, Umicore
again performed due diligence activities for all its purchased cobalt
materials used in rechargeable batteries, tools, catalysts and several
other applications. In 2019, Umicore piloted a new third-party site
audit protocol on our largest cobalt supplier, with a plan to roll out
to other suppliers starting in 2020. Due to the COVID-19 pandemic,
the roll out of our new third-party audit was not possible. Umicore
did however follow up on mitigation actions defined in the previous
year’s audit.

41

The passport will trace the origins of battery materials and monitor
them throughout their entire lifecycle on a global digital platform,to help eradicate unacceptable social or environmental practices andpush unsustainable materials out of the market.

Umicore obtained, for the sixth year in a row, third-party assurance
from PwC that our 2020 cobalt purchases are carried out in line withthe conditions set out in the Framework. The share of cobalt fromrecycled origin was also reviewed as part of the assurance process
and decreased to 4% in 2020, down from 9% in 2019, in part due
to the impact of COVID-19 on the availability of cobalt-containing
industrial scraps and end-of-life materials for recycling.
Umicore Sustainable Procurement Framework for Cobalt available at:
The 2020 Due Diligence Compliance Report for Cobalt Procurement,
as well as previous years’ reports are available online.

UMICORE.COM/SUSTAINABLE-PROCUREMENT-CHARTER-COBALT

Umicore also supports the development of traceability projects
across the industry. In 2019, the Cobalt Institute launched the
Cobalt Industry Responsible Assessment Framework (CIRAF), a
management framework which strengthens the ability of cobalt
producers and buyers to assess, mitigate, and report on responsible
production and sourcing risks in their operations and supply
chain. Umicore is again reporting on our supply chain using the
CIRAF, which we helped develop. In 2020, Umicore’s supply chain
approach is aligned with the level 3 requirements of the CIRAF, an
improvement from level 2 in 2019. The compliance report for 2020 isavailable online.
Within the Battery Alliance, Umicore continues to support thedevelopment of a battery passport to ensure transparency on theorigin of the raw materials, their transformation, use and end of life.

Umicore Integrated Annual Report 2020

Performance
SUSTAINABLE PRODUCTS AND SERVICES
CLEAN MOBILITY & RECYCLING REVENUES
%

80
72

70
60

65

2016

75
77

67

2017

2018

2019

2020

In 2020, 77% of Group revenues were from activities that deliverproducts or services that are directly linked to clean mobility or
recycling, up from 75% in 2019, and up 18% compared to 2016, when
we began tracking revenues in this way. Many of the materials andservices making up the remaining 23% of revenues provide answers
to specific societal needs such as improved connectivity (materials
for high quality glass, displays) or reduced energy consumption(materials for use in energy-efficient lighting such as LEDs).

Umicore’s Horizon 2020 objective is to generate
further competitive advantage through thedevelopment of products that have specificsustainability benefits.
Our primary focus is on activities thatprovide solutions for clean mobility andresource scarcity.

Umicore plays a pioneering role in promoting a sustainable value
chain for batteries and was the first company to provide its
customers with battery materials of a certified sustainable andethical origin. We strongly believe that higher transparency along
the value chain will increase the sustainability of the battery
industry. Therefore, Umicore joined Glencore, ERG and CMOC in
the Re|Source consortium. Re|Source is developing an industry-wide
blockchain platform to trace the origins of the raw materials andtrack them along the entire battery value chain.
To be a preferred sustainable supplier, we work directly withour customers to meet their environmental requirements anddisclose our own performance and ambitions. In recent years,
some customers have opted for a third party sustainable supplierassessment. For these customers, Umicore discloses to the CDP (seeCDP).
responses:
Umicore has fully monitored and reported on emissions since1999 and included reduction targets in our strategic approachin 2010. We delivered emissions reductions beyond our targets
then, and in the context of Horizon 2020 we're committed tocontinuous improvement of our environmental performance even as
we continued to grow.
In 2020, Umicore received the Platinum Medal in Corporate Social
Responsibility from EcoVadis, placing us among the top 1% of
our industry peers in the EcoVadis global network of over 65,000
rated companies.
To support our ambition to turn sustainability into a greater
competitive advantage, it is essential to develop a full understandingof the impact that our products have on the world and use it asa lever for improving the footprint of our products and services.
At Umicore, the business units work with corporate EHS on life
cycle assessments (LCA) to identify the environmental impactof their products and services and set a baseline against which
improvements can be measured.

42

We share our learning and participate in association-driven efforts,such as those of the Nickel Institute, the International Platinum
Association and the Cobalt Institute.
We perform LCAs on our materials on an ongoing basis. Using
the opportunities identified in this new robust data, Umicore
can leverage our unique combination of materials chemistry,
energy mix and raw and recycled materials for improved overall
environmental impact and a lower-carbon mobility. Umicore willcontinue to develop selective products and services that havespecific sustainability benefits and answer the growing sustainability
needs of our customers.

We develop specific sustainability solutions forour products and their applications by working
closely with customers.
As a metal that offers huge potential for innovative applications suchas clean tech and cutting-edge semiconductors, germanium is an
important focus for Umicore’s circularity ambitions. Over the last five
years, we have taken significant strides toward our goal of supplying
100%-sustainable germanium through a number of initiatives.
Germanium sourced through zinc production has an 85% smaller
footprint than germanium sourced from coal, and recycled
germanium has a 95% smaller footprint. Today, 50% of thegermanium we use is recycled and more than two thirds of theremainder is recovered from industrial by-products, rather than coal.
We also collaborate with companies around the world to develop
innovative new ways to recover germanium from production
processes and waste streams. For more on Umicore's approach toGermanium, read Pioneering the sourcing & recycling of sustainablegermanium(p. 52).

For Umicore products and services, visit:
UMICORE.COM/INDUSTRIES

Umicore Integrated Annual Report 2020

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43

Umicore's virtual trade show booth

UMICORE INNOVATESWITH VIRTUAL TRADE SHOW
Every year, Umicore participates in more than 60 trade shows where
we meet and talk face to face with our customers and potential
customers. Due to COVID-19, almost all trade shows were postponed,cancelled or replaced by virtual events. While our commercial teams
still favor the live events where a close interaction with the customer
is possible, we quickly realized we could not miss the opportunity tojoin virtual trade shows. Group Communications started to develop
a new concept of virtual exhibits that can be customized for thedifferent business units. Very soon a first project appeared: thee-scrap conference, a high-profile trade show on electronic waste.

As a global player in the field of e-scrap recycling, Precious Metals
Refining (PMR) was not only one of the exhibitors, but the only
one with a virtual booth. Group communications demonstrated that
innovation applies to all areas of the business by including tradeshows in its long-term “digital first” approach.

GLOBAL TEAMWORKAs the decision to convert the e-scrap conference into a virtual event
was communicated very late, it was a race against time to get ourvery first virtual booth ready in time. "A team from the United States,
Germany, Brazil and Belgium worked very hard to get PMR's first
virtual exhibition booth ready just in time. I am also proud that wecan provide all our business units with this platform to present theiractivities and interact with their customers virtually." --Werner Appel,
Head of Exhibitions and Events

THE ONLY COMPANY WITH VIRTUAL MODE

During the two-day e-scrap conference a whole team literally
worked behind the screen. Lies Geunens, Junior Supply Manager
Recyclables at PMR was one of them. "We were the only company
with a customized virtual booth fully in line with the look and feelof our booth for physical events. The fact that we were there with avirtual stand shows what an innovative company Umicore really is."-- Lies Geunens, Junior Supply Manager Recyclables
Visit one of our virtual booths at:

VIRTUAL-BOOTH-U.COM

Umicore Integrated Annual Report 2020

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HEADING
Performance20
44

Eco-efficiency

2020 TARGETEFFICIENT OPERATIONS

Increase value throughefficient use of metals, energy
and other inputs

KEY RISKS & OPPORTUNITIES
1Regulatory and legal context

3 Technology and substitution
8

Climate and environment

SUSTAINABLE DEVELOPMENT GOALS
Umicore's Climate Action logo

Climate Action Program
Through the Umicore Climate Action Program created in 2019, we invite our employees to submit innovative ideas to reduce ourecological footprint in all areas, from quick wins in the office to global responsible business travel. Employees have answered thecall for ideas with great enthusiasm. In Germany, for example, over 50 ideas were submitted and 31 currently implemented. In China,
over 100 ideas were submitted of which 84 have been slated for action.
UMICORE.COM/STORIES

Umicore Integrated Annual Report 2020

Umicore Integrated Annual Report 2020

Performance45

Eco-efficiency
WE AIM TO OPTIMIZE THE SUSTAINABILITY PERFORMANCE OF OUR OWN OPERATIONS, FOCUSING ON ENERGY EFFICIENCY-17%
ENERGY CONSUMPTION VS 2015

-67%
METAL EMISSIONS TO AIR VS 2015-59%
METAL EMISSIONS TO WATER
VS 201564%
SECONDARY & END-OF-LIFE
MATERIALS IN INPUT MIX

As a materials technology company, we aim
to drive an even more efficient use of metals,
energy and other inputs in our operations tobalance environmental and economic factors
and work to increase closed-loop relationships
with our customers.

This ambition to address increasing global resource scarcity andachieve material efficiency is an important factor in our strategy.
Over the span of our Horizon 2020 strategy we have consistently
secured over half our materials supply from non-primary sources.
In 2020, 64% of the materials we used were from end-of-life orsecondary origin, while 34% were of primary origin.

As part of our commitment to sustainability, we take into
account the environmental impact of our operations, and strive tocontinuously improve our environmental performance, implement
risk management strategies based on valid data and sound science,
actively participate in the management and remediation of risks
that are the result of historical operations and facilitate andencourage responsible design, use, re-use, recycling and disposal of
our products.

In our Horizon 2020 strategy, we defined energy efficiency and metal
emissions reduction as key eco-efficiency performance indicators.
We pursue eco-efficiency initiatives to generate compelling value
and a competitive edge through reduced costs, minimizing ourcarbon footprint and strengthening our license to operate. In
addition, we believe that it is equally important to continuously
monitor, control and report our performance in relation to otherenvironmental aspects. Our Horizon 2020 approach of continuous
improvement was successful in improving our efficiency andreducing our impact.

Our success is measured in our ability to make sustainability acompetitive advantage by being increasingly energy and material
efficient compared with our 2015 baseline.

Umicore is a world leader in the eco-efficient
recycling and refining of precious metal­
bearing materials.
These materials include by-products from other non-ferrous
industries, end-of-life consumer and industrial products and e-scrap.
Our eco-efficient process entails maximizing both the physicalrecycling of materials and the revenue obtained, while minimizing
the associated environmental burden and total cost. We recoverand sell precious, special, secondary and base metals and ourclosed-loop business model maximizes material re-use.

We continue to invest in research to innovate inclean mobility and sustainability.
Umicore prioritizes R&D to support our Horizon 2020 ambitions byfocusing on the development of innovative solutions for materials
and processes. Our ability to create a pipeline for these innovations
and solutions is an important component of our long-term eco­efficiency performance.

Umicore Integrated Annual Report 2020

Performance
ECO-EFFICIENCY

ENERGY EFFICIENCYNORMALIZED ENERGY CONSUMPTION

Umicore plays a key role in the transition to a
low-carbon society.

%

96

48

94

79

2016

2017

71

2018

77

2019

83

2020

Energy consumption is continually monitored and regulated at allsites. The bigger contributors are additionally encouraged to develop
energy efficiency projects and are required to report on them.
Several Umicore sites have implemented the ISO 50001 energy
efficiency standard and the 2 largest sites in Belgium have beenpart of the energy efficiency covenant with the Flemish government
since 2004.

METAL EMISSION REDUCTION TO WATER
%

100

20

99

2016

31

29

2017

2018

43

2019

41

2020

METAL EMISSION REDUCTION TO AIR
%

70

70

59

54
41

30

2016

2017

2018

We produce rechargeable battery materials for EVs, catalysts for
reducing transport and industrial emissions, and contribute toresource stewardship by recycling metals and end-of-life products ina closed loop. In our own operations, we are committed to achieving
further energy efficiency compared to our 2015 levels.

2019

33
2020

In 2020, 26 sites accounted for 95% of the Group’s energy
consumption with a total of 38 energy efficiency projects
implemented over the course of the year. By the end of 2020,
Umicore had achieved a 17% reduction in energy consumption
compared to the 2015 baseline, correcting for production intensity.
This result is the combination of improvements in productivity andthe continuous implementation of energy efficiency projects. Overthe last 5 years, 189 efficiency projects were implemented, the bulkof which tackled heat, HVAC, lighting and process efficiencies.
When looking at our carbon emissions, we register a 7% reduction
compared to 2019. In 2020, we built a nitric acid plant at our Hobokensite in Belgium, where we also produce sulfuric acid. Nitrous oxide,
a byproduct of sulfuric acid production also known as laughing gas,
is a greenhouse gas that has about 300 times more impact on global
warming than carbon dioxide (CO2). By capturing and transforming
nitrous oxide released during production into nitric acid, we avoid
the emission of nitrous oxide into the air. In doing so, we reduce
our carbon footprint by almost 40,000 tonnes CO2e/year and turn46

waste into a resource, a pillar of the Umicore business model. When
compared to the outset of our Horizon 2020 strategy, our carbon
emissions have increased 3%. In that time, Umicore has expanded interms of operational footprint and ramped up production lines while
maintaining a continuous process improvement approach. For more
information, see note E3(p. 192).
In recent years, as part of our commitment to sustainable operations,
we began examining the share of renewable energy in ourpurchased energy mix. 2019 marked the first year we systematicallycollected information from our sites on purchased electricity sourced
from wind, solar and/or biomass energy and could report the result.
In 2020, the share of renewables in Umicore’s purchased energy mix
was 15%. For more information, see note E4(p. 192).
While choosing the share of renewables in our purchased energy
mix is a challenge in some of the regions where we are most active,
Umicore is actively pursuing an increase in the share of renewables
in our purchased energy mix.

METAL EMISSIONS

We monitor and take steps to reduce the impact of metals emissions
on the environment – both to water and air. Each of the different
metals that we emit has a specific level of potential toxicity forthe environment and human health. For this reason, we focus on
reducing the impact of our emissions.
The aim for Horizon 2020 was to reduce metal emissions impacts
while considering growing volumes of production. While monitoring
continues on all sites, reporting focuses on the 10 or fewer sites that
contribute to 95% of the emissions expressed in impact.
In 2020, the impact of metal emissions to air fell by 67% compared
to 2015, mainly thanks to further efforts to improve filtration andprocess efficiency. Compared to 2015, after correction for activity
levels, the impact of metal emissions to water in 2020 fell by 59%.
For more information, see note E2(p. 189).

Umicore Integrated Annual Report 2020

Performance
STEWARDSHIP

47

Managing impact in Hoboken

Umicore is a global company with a global footprint. In terms ofour products and services, we are uniquely positioned to address
global megatrends — namely the need for cleaner air and resource
stewardship, and environmental performance and safety are at theheart of our process designs.
Umicore continues to provide advanced emission control and battery
material technologies while advocating for a ramp-up of clean
energy and clean mobility technologies. We also emphasize thelinks between a Circular Economy and responsible sourcing, resource
efficiency, waste management and high-quality recycling. We aspireto turn sustainability into a greater competitive edge throughour unique business model and our commitment to ethical andresponsible sourcing.
Part of our commitment to sustainability is to take into accountthe environmental impact of our operations with growing andexpanding capacity. Many factors are considered in choosing to build
new sites or to expand existing sites.
Our new site in Nysa, Poland, for example, was selected for its
vicinity to our European customers (providing reduced transport
impact of our products) and a skilled technical workforce, as well as
low-carbon electricity supply. The Nysa site will make use of wind,hydro and photovoltaic energy.
Active participation in the management and remediation of risks
from operations is an integral part of the Umicore Way. Our proactive
program for assessing and remediating, where necessary, soil andgroundwater contamination progresses tirelessly.

Umicore's Hoboken proposed green zone

The Umicore site in Hoboken is one of the world’s largest
precious metals refiners, offering recycling and refining services for
precious metal bearing materials such as by-products from industry,electronic scrap and spent industrial and automotive catalysts. For
several decades, the blood levels of children living close to the plant
have been monitored twice per year by the authorities. In July 2020
the readings of the children living close to the Umicore recycling
plant in Hoboken, Belgium, showed elevated levels of lead in theirblood after multiple years of steady decreases, with historically
low levels in 2019. Although the root cause investigation showedno major direct source of lead emissions in the plant, Umicore isaware that the risks associated with lead need to be well managed
at all times. Various actions have been taken to reduce diffuse
emissions and to ensure that the local community and industry can
co-exist sustainably.

For more, see note E7(p. 195).
Read the full story on:

UMICORE.COM/STORIES

Umicore Integrated Annual Report 2020

Performance

48

EXEMPLARY MANAGEMENT OF HISTORICAL RADIOACTIVE WASTE STORED IN OLEN
UMICORE’S OLEN SITE LEGACYIn Olen, Umicore has state-of-the-art storage facilities of industrial
residues where there is only a small fraction that is lightly
contaminated. Additionally, there is a dedicated facility on site,
built in the 80s, to contain radioactive storage for light radioactive
materials. Strict inspections are carried out regularly by thecompetent authorities.

Since 2009 the Federal and Regional Agencies (FANC, NIRAS andOVAM) have been working with Umicore to find a long-term solution
to the storage of historical radioactive waste. Early in 2020, theFederal Government, through FANC and NIRAS, issued a vision
document in which a final waste storage destination is proposed
to deal once and for all with the historical radioactive legacy at
the Olen site. Umicore fully supports the proposed approach and iscooperating with the authorities on planning the next steps in thismajor step forward towards a long-term, sustainable and agreed
solution to Olen’s radioactive legacy. Working groups comprising
representatives of OVAM, NIRAS, FANC and Umicore are being
formed to shape this program.

LONG-TERM SOLUTIONSOPEN AND CONSTRUCTIVE DIALOGUE

heat. Such waste has to be buried at a depth of several hundred
meters. The residues present on the Umicore site (essentiallycategory A residues and a small quantity of category B) are ofvery low radioactivity and are stored according to the guidelines set
out by the relevant federal agencies.

Aerial view of Umicore Olen

From 1922 until the end of the 1970s, Umicore’s predecessor
companies manufactured radium and uranium products in Olen,
Belgium. Until the 1960s radium was the only treatment for cancer.
Uranium oxide was used in fuel rods for nuclear power stations.
Since the 1970s there has no longer been any radium or uranium
production at the Olen site. All buildings and installations whereradioactive material was processed have been dismantled. The
residues storage area has been cleaned up to eliminate any
possible adverse effect on employees, the surrounding population or
the environment.
Some low radioactive residues remain from these past activities
and are stored at the Umicore site in Olen using the best available
techniques and in concertation with the authorities. These residues
cannot be compared in any way to the radioactive waste from
nuclear power plants. Waste from nuclear power plants is category
C waste (according to the classification of the International Atomic
Energy Agency) which is highly radioactive and generates significant

While a study in the 1990s, still applicable today, stated that 'atpresent there is no danger to public health and the environment',
Umicore has sought a long-term solution to maximize safety in thestorage of the historical radioactive waste. Umicore has depolluted
the premises outside the plant in order to make permanent
improvements to the existing conditions and to provide effective
long-term protection to human beings and the environment. We
continue to work with the authorities on monitoring and on long­term solutions.
Umicore has set in place a monitoring program with an externalradiation expert, and periodic reporting to the authorities. This
program includes visual inspection to ensure the integrity of theexternal grass cover, radon emanation measurements, stability
measurements and monitoring of groundwater quality. The
government has confirmed that there are no risks to the healthof employees, local residents or the environment.

While no further action is needed at present, the ongoing proactive
and constructive cooperation between FANC, the Municipality ofOlen and Umicore has been publicly confirmed by the neighbors andby the local authorities .

“We have always had an open dialogue
with Umicore about radioactivity.” -- Seppe
Bouquillon, Mayor of Olen, Belgium
The mayor of Olen believes the experts of the Federal Agency
for Nuclear Control and Umicore when they say that there is
no immediate danger for public health and the environment*.
(Source: Belga)* Burgemeester van Olen: 'Steeds open overleg gehad met
Umicore over radioactiviteit' - België - Knack“There is no danger to public health.”-- FANC, Federal Agency for Nuclear Control
Umicore Integrated Annual Report 2020

Performance49

We have prioritized our R&D programs to support our shortterm and long term ambitions, focusing on the developmentof closed-loop material solutions. We are consistently investingin research to meet the growing demand for clean mobility
materials and for quality recycling of precious and other valuable
metals. Besides our core strategic domains, we are exploringnew developments in adjacent and new markets based on our
expertise domains.
From production and process technology to deep knowledgeof metallurgy and materials science, a significant part of ourtechnology is delivered using Umicore R&D findings. Umicore
also develops technology in collaboration with industrial or
academic partners and, where appropriate, we protect our
intellectual property with patents. 63 patents were filed in 2020.
Umicore continues to invest in R&D and to attract international
scientific talent to develop the next generation of sustainableproducts and process technologies for our customers.
Umicore R&D employees cover 35 nationalities in 15 locations,and in 2020, 1 in 4 were women.

Margot Neven and Scott Segers in the hydrometallurgical lab

Research, development & innovation

Over the past 5 years, the R&D investments increased by over
40%. In 2020 Umicore invested € 223 million on R&D, 6%
more than in 2019, largely on rechargeable battery materials
product and process technologies development, new businessincubation and competence development. The R&D spend
represented 7% of revenues and capitalized development costs
accounted for € 32 million.

As a materials technology company, our future success depends on our ability to develop and market innovative products andservices. We strive to meet the needs of a rapidly changing world and continuously search for new solutions for our customers.
We dedicate our research and development (R&D) to solving some of the world’s largest societal challenges in the areas of clean
mobility and clean air, resource scarcity and sustainability.

Umicore Integrated Annual Report 2020

Performance

50

TECHNOLOGY IS AT THE CORE OF OUR SUCCESS€ 223m

CLEAN MOBILITY INNOVATIONThe clean mobility trend, toward zero well-to-wheel emission
ambitions, points to a combination of electric and hybrid
vehicles, fuel cell vehicles and carbon neutrally-fueled internal
combustion engines.

2020 R&D SPEND

15

Umicore has a unique position in clean mobility materials across all
drive-train technologies. It is one of three global leaders in emission
control catalysts for internal combustion engines, a leading supplierof materials for rechargeable batteries used in electric vehicles andcatalysts for fuel cell applications.

R&D SITES

1,325

Legislation increasingly requires gasoline vehicles to be equippedwith particulate filters. Our work focuses on improved catalyst
technologies for gasoline and diesel vehicles in a cost efficient
way to meet these increasingly stringent regulations. For gasoline
particulate filters (GPF), Umicore is optimizing the distribution of
the catalytic material in the pores of the filter so that an optimalbalance of backpressure, filtration efficiency and chemical reactivity
is obtained.

R&D EMPLOYEES

R&D EXPENDITURE
Millions of Euros

0

223

211

196

175

200

156

400
2016
2017
2018
2019
2020

In response to COVID-19, recovery projects worldwide accelerated
the adoption of sustainable technologies, such as electric vehicles.
The key to improving the total cost of EV ownership, and theenvironmental footprint of their batteries, is their increase inenergy density. As battery-powered vehicles become mainstream,different user segments emerge, each with different cost andperformance needs, presenting opportunities for tailored materials
solutions. Research programs on cathode and anode materials withnovel compositions, or for batteries working at a higher voltage,address these upcoming needs. To ensure synchronization withmarket demand, this type of innovation is often performed in close
collaboration with our external partners who test samples of ournext-generation products.

Hydrogen is a promising future energy carrier
which is converted into clean electricity byfuel cells.
Umicore’s electrocatalysts play a crucial role in Proton Exchange
Membrane fuel cells used in stationary and mobility applications
on the global path to zero emissions. Our fuel cell catalyst
portfolio covers all relevant technologies for both anode andcathode electrode applications. Working with platinum and platinum
alloy on carbon catalysts as well as special protective additives,
Umicore R&D improves the robustness of the fuel cell undercritical operating conditions to achieve performance requirements invehicle applications.

INNOVATION IN RECYCLING
Umicore is the world’s leading recycler of complex waste streams
containing precious and other valuable metals, including frombatteries, electronics and catalysts. Umicore’s closed-loop businessmodel will be a powerful strategic differentiator for the foreseeable
future. Umicore’s recycling is not only the cornerstone in thesustainable development of several industries, but with the supply
of metal based products and recycling under one roof, Umicore isalso the partner of choice for the management of metals throughout
the loop, providing reliable sourcing and financial optimization ofboth working capital and metal price exposure in the value chain.
Innovation projects for recycling follow industry trends closely. In
2020, our attention in battery recycling went beyond the recycling
process, to the safety and ergonomics of operations and how
these can be supported by automation and robotization. We started
mapping what the future urban mine may look like and how thismay inspire new flowsheets.

Umicore Integrated Annual Report 2020

Performance
DIGITAL TRANSFORMATION
Digitalization and Industry 4.0 are powerful tools to create value
in many domains. Three initiatives have been undertaken to scalethese efficiently across the group: first, the definition of digitalization
roles and the corresponding training programs; second, the choiceof Umicore standard tools for certain business processes, such as
financial planning, procurement or the storage and self-service
analysis of operating data; third, the set-up of a central teamthat guides business units in the drafting and implementation ofdigitalization roadmaps. Such roadmaps aim at unlocking value
through projects covering a spectrum of opportunities, fromoperational excellence, over the pro-active management of ourEHS performance, to revolutionizing R&D.

R&D FIT FOR FUTURE GROWTH
A carbon neutral economy by 2050 will require further adoption ofclean mobility solutions and renewable energy sources for electricity
such as hydrogen and other alternative fuels with zero carbon
footprint (synthetic fuels, e-fuels, biofuels, etc.). Clean cities withzero local emission and with zero-waste streams are the ultimate
goal. The evolution towards zero-waste streams will put even moreemphasis on circular economy to address resource scarcity in all
smart sectors (mobility, IoT, Industry 5.0, etc.).
The push towards decarbonization of industry will form a Hydrogen
economy with new opportunities for innovation in catalysis. Building
on our expertise of fuel cell technologies in stationary and mobile
applications, Umicore intensified the development efforts in the fieldof anode and cathode catalysts for green hydrogen production.
Value creation through innovation goes further than R&D. The New
Business Incubation unit created in 2019 grew in 2020 to become
the unit in which our long-term research projects and internal
ventures, such as battery recycling, silicon composite anodes or
chemical metal deposition solutions, are groomed to become
mature businesses over a horizon of 5 to 10 years.

OPEN INNOVATION

We continuously strengthen our in-house competence expertisein metallurgy, chemistry and material science, while constantly
expanding our external collaboration network. Despite travel
restrictions in 2020, Umicore remained committed to open
innovation; a dedicated team facilitates the collaboration withdozens of research institutes, start-ups and universities worldwide.
Foresight is crucial now, more than ever, and we composed a
strategic insights and analysis team to develop a coherent view on
future scenarios.
Often multiple innovation disciplines contribute to the result. For
instance, the Umicore open innovation and digitalization teams
helped in setting up the collaboration with an external partner tobring robotization expertise to battery recycling. In another example,
Umicore, Imec and other partners have started to work together inthe development of a new sensor for harsh industrial environments.
A worldwide, ever more diverse Umicore community of over 1300
scientists is collaborating with customers, academic and technology
institutes to sharpen our skills, improve the quality of our products,
develop our processes, speed up development, lower costs, improvesafety and reduce our environmental impact.
World-class expertise is used and developed into effective building
blocks of our innovation engine. The most important building
blocks include:
●
●
●
●
●
●
●
●

Metallurgy
Materials science
Analytics, trace analysis and material characterization
Chemistry and PGM chemistrySurface science
Computational science including data science
Application testing and testing methods
Process technology and process scaling

51

develop these science and technology trends and integrate them inour development work.
Deeper understanding of thermodynamics, kinetics and complex
element interactions are driving the speed of our development andhelp avoid excessive experimental or pilot validations. We workwith worldwide consortia to develop and finetune methods that are
applicable to Umicore’s different metallurgical flows.
Advances in modeling fuel insights on improving materials and onunderstanding and predicting performance. Surface engineeringhas become important in optimizing product performance,complementing our expertise in materials synthesis and colloid
chemistry. Increased availability, development and deployment of
accurate analytical methods provide operational efficiency andaccelerate both our innovation process and learning speed.
Computational science and data science are essential at all phasesof the innovation process and play a growing role in optimizing ourworkflows. Natural language processing in market and technology
intelligence, image and pattern recognition, machine learning,amongst others, make computational science our fastest growing
area of expertise.
Technology innovation and differentiation remain key for our
future growth. Umicore’s forward-looking approach is fueled byour expanding expertise. The combination of detailed modeling andgrowing improvements in integrated process data, strengthenedby artificial intelligence, accelerate process understanding andimprovements. Our ambition is to grow our portfolio of collaborative
programs focusing on measuring and understanding materials
functionality, leading to better product design.

"We use the power of technology, innovationand data to help people have better lives
and to reduce our impact on the planet"-- An Steegen, CTO

These areas are all undergoing rapid developments, creating
opportunities to improve our technology. We follow, test andUmicore Integrated Annual Report 2020

Performance
PIONEERING THE SOURCING & RECYCLING
OF SUSTAINABLE GERMANIUM

the zinc production process. However – and crucial for Umicore as asupplier of sustainable materials – germanium can also be recycled.

SHAPING THE FUTURE
OF CIRCULARITY IN HIGH TECH – & BEYONDLEADING THE ENTIRE INDUSTRYBY DEFINING SUSTAINABLE BEST PRACTICESIn addition to identifying and developing new ways to source
germanium sustainably, these achievements have also led to deep,
lasting and impactful relationships with our customers and partners.
The positive outcomes are many and mutual, including financial
benefits for every party in the supply chain, a stronger global focus
on germanium as a circular resource, more environmentally friendly
industrial processes, and much more.

We’ve made significant progress on our quest toward 100%­
sustainable germanium, enabling us to set highly demanding
industry benchmarks through our own operations. In fact, between
2015 and 2020, Umicore has reduced its supply of coal-sourced
germanium by 50%. Today, 50% of the germanium used by
Umicore is recycled and more than two-thirds of the remainder
is recovered from industrial by-products. Thanks to these efforts,
we are considered amongst the most sustainable germanium
manufacturers worldwide.

PAVING THE WAY FOR A CIRCULAR ECONOMY
At Umicore, we see it as our responsibility as a global industrial
player to commit to ensuring a healthier planet for all. We're proud ofwhat we have achieved in collaboration with our partners, and lookforward to further closing the germanium loop through innovative,
multidisciplinary projects.

Among the key milestones we've achieved throughpartnerships, Umicore:

For Umicore products and services, visit:
UMICORE.COM/INDUSTRIES

Research has shown that germanium sourced through zincproduction has a 85%-smaller carbon footprint than germanium
sourced from coal, and recycled germanium boasts a 95%-smaller
footprint. As a result, sustainable germanium is an important focal
point for our circularity efforts.

Production scraps from fiberoptic cables containing germanium

We continuously strive to transformsustainability into a competitive advantage.

GERMANIUM: VALUABLE & VERSATILE– BUT NOT SIMPLE TO FIND
When it comes to high-tech innovation, the unique characteristics
of germanium are valuable in a whole host of applications, and thesemiconductor is recognised as a critical material by the governing
bodies of the European Union and the United States. To give just a
few examples, germanium is used in fibre-optic cables required for5G connectivity, in solar cells powering satellites and Mars rovers
and in cutting-edge semiconductors.

52● signed multiple long-term agreements with a major company forsustainable germanium;● established multiple licensing and recycling agreements withinternational partners to extract and concentrate germanium
from waste streams;● collaborated with a partner to develop an innovative, cost­effective process for germanium extraction from scrap andproduction waste;● guided a photovoltaic technology business in methods tooptimise the collection of germanium from their new
manufacturing processes.

Because its elemental state isn't found in nature, most germanium is
extracted through coal combustion or sourced as a by-product from

Umicore Integrated Annual Report 2020

PAGE
HEADING
Performance

21
53

Great place
to work2020 TARGETHEALTH

Become a zero-accident
workplace.

SAFETY

Reduce employee exposure
to specific metals.

PEOPLE ENGAGEMENT

Further improve people engagementwith specific focus on talent attraction& retention, diversity management
and employability.

KEY RISKS & OPPORTUNITIES
7 Talent attraction and retention

Thomas Creemers for the "That's brilliant" Battery Challenge - Photography by ©Frederik Beyens

Umicore supports “That's brilliant”
to bring young people closer to STEMSUSTAINABLE DEVELOPMENT GOALSThe next generation of innovators will play an important role for a technology oriented company like Umicore. Stimulating
scientific interest and challenging young people to think about innovation are important links in building a sustainable future.
Science, technology, engineering and mathematics (STEM) education gives students the tools to building that future.
UMICORE.COM/STORIES

Umicore Integrated Annual Report 2020

Umicore Integrated Annual Report 2020

Performance

54

Great place to work
THE LONG-TERM SUCCESS OF UMICORE DEPENDS ON OUR BEING A SAFE, HEALTHY AND ENGAGING PLACE TO WORK

10,859Group employees

21.7%
Women in our workforce

96%
Retention rate

Our success is measured by our ability to offer a safe workplaceand embed a safety culture in our workforce, to monitor, manageand protect our employees from exposure risks, to ensure Umicore’s
status as an employer of choice in all the regions where we
operate and to manage talent as a driver for reaching our desired
business growth.
We are proud of our position as a pioneer and world leader inmaterials technology and sustainability, but in a disruptive industry,
we need to continue innovating, challenging the status quo andgrowing, both as a company and as an employer.
We strive to create an environment in which all our employees can
succeed, and which encourages innovation, thrives on collaboration,
rewards contribution and provides every employee with theopportunity to develop.
The varying ambitions and interests of our colleagues and new
recruits enrich Umicore with new outlooks and new ways of working
together which build our competitive advantage.

Our values and mutual respect remain
consistent as we all work towards the same
vision: to create materials for a better life.
Umicore has a truly global profile, with operations on every major
continent. 10,859 employees currently work at Umicore, across
47 production sites, 15 research & development centers and insupporting offices including our global headquarters in Brussels.
Our Horizon 2020 strategy is designed to consider the future trends
that impact Umicore, the labor market and societal expectations. Our
objectives are centered on health and safety, talent management,
diversity and employability – aspects that will have the greatest
impact on reaching Horizon 2020 goals.
Despite competitive markets we are making strides in talentmanagement, diversity and employee engagement. We continue topursue our long-term goals of eliminating lost-time accidents andoccupational-related ill-health and to seek new ways of engaging
colleagues by promoting safety and wellbeing in the workplace.

Umicore Integrated Annual Report 2020

Performance

55

HEALTH & SAFETY

49
Lost Time Accidents

83%
Reporting sites without LTA

1.6%
Exposure Ratio,
all biomarkers aggregated

The safety of our people is a key priority.

ZERO ACCIDENTS

In 2020, while 83% of the reporting sites operated without a losttime accident, our overall safety results were again disappointing.
In December 2020, a fatal accident occurred at Umicore’s Cobalt &Specialty Materials site in Subic, the Philippines. This tragic eventshows once more that the journey to make Umicore a zero-accident
workplace is far from completion, even in sites with an outstanding
safety track record such as Subic which had operated more than 13
years without LTA.
Umicore recorded 49 lost time accidents in 2020 compared to 90 in
2019. The frequency rate was 2.52 (4.60 in 2019) and the severity rate
was 0.47 (0.20 in 2019).
In the past we reported that there is a clear need to change behavior
and mindset to install a true safety culture. While absence fromthe workplace due to the COVID crisis did not have an impact onlost time accidents, we have noted that health precautions tied tothe crisis did improve the safety culture at Umicore. The sense ofurgency in the face of the crisis, the purposeful care of one anothercombined with a workplace communications style that focused onsafety coaching resulted in improved safety performance. Umicore’scommitment to safety is unwavering, and these results haveconfirmed that tackling cultural change in terms of safety is theright path to creating a safe and great place to work.
In 2020, process safety activities focused on executing process
risk assessment studies. At year end,over 70% of the production
processes had received specific process hazard and risk assessmentscompliant with Umicore standards. A detailed timeline forcompletion of the remaining studies over the coming years gives
priority to processes with high risk-profiles.

OCCUPATIONAL EXPOSURE

Umicore makes continuous efforts to eliminate occupational-related
health issues and to promote wellbeing in the workplace. The
main occupational health risks are related to exposure to hazardous
substances and physical hazards (mainly noise).

Umicore is leading the industry by setting
voluntary, science-based targets for potentiallyhazardous exposure that are more stringent thanlegal requirements, where they exist.
All employees with a potential workplace exposure to any of thetarget metals (arsenic, cadmium, cobalt, indium, nickel, lead andplatinum salts) or other metals are monitored by an occupational
health program. The Horizon 2020 objective for occupational
exposure is to reduce to zero the number of individual readings thatindicate an exposure for an employee that is higher than the internal
target levels. While these excess readings do not necessarily indicate
a risk for the person concerned, they are important indicators ofrecent or lifetime exposure and are used as the basis for further
improvements on specific sites.
In 2020, a total of 7,406 biological samples were taken from
employees with occupational exposure to at least one of the metals
mentioned above (platinum salts excluded). 122 readings showeda result in excess of the internal target value, bringing the total
excess rate to 1.6%, down from 1.8% in 2019 and 3.2% at the
beginning of our Horizon 2020 strategic cycle. All occupationally
exposed employees are regularly monitored by an occupational
health physician.

Umicore continues our internal HAZOP leader training program toincrease and secure process safety knowledge.

Umicore Integrated Annual Report 2020

Performance

56

TALENT MANAGEMENTWORKFORCE BY REGION

EuropeNorth America
South America
Asia-Pacific
Africa

4049
964

704

5,000

622

10,0006980

N°The number of employees in the fully consolidated companies
decreased from 11,152 at the end of 2019 to 10,859 at theend of 2020. This decrease mainly reflects the plant closuresin Tulsa, US (Automotive Catalysts) and Wickliffe, US (Cobalt &Specialty Materials).

0

VOLUNTARY LEAVERS RATIO BY REGION

9.25

%

5.29

10

0.84

1.65

1.77

5

EuropeNorth America
South America
Asia-Pacific
Africa0

AVERAGE NUMBER OF TRAINING HOURS PER EMPLOYEE

25

36.33

48.73

43.10

45.33

41.49

HOURS / EMPLOYEE

50

Talent management involves finding and retaining the right people
at all levels of the organization and in a wide variety of functions,
including equipment operators, laboratory analysts, office staff andproduction engineers. For Umicore the main drivers are linked to the
Horizon 2020 growth ambitions in the sectors and regions where weare active.

2016
2017
2018
2019
2020

Umicore can attract, develop and retain highcaliber leaders by offering attractive andchallenging leadership roles.

Umicore provides managers with a training curriculum aligned
across all regions and promotes career development using
an internal online vacancies tool, promoting greater internal
mobility. Training at Umicore encompasses traditional classroom­
type modules, e-learning and in-service instruction.
In 2020, the average training hours per employee reached 36 hours,
lower than 49 hours in 2019, primarily due to COVID-19. Due tothe pandemic, training was organized differently: in smaller groups
and respecting social distancing where in-person presence waspossible, and through online sessions. Some training was postponedor cancelled. In 2020, managers training hours (27 hours) were lower
than for other employees (39 hours).

In 2020, following up on the outcomes of the previous year’s talentreview, Umicore implemented mentoring programs for emerging
talent, including for young top talent, with targeted development
programs. These programs revolve around developing broad profiles
and providing multifunctional development opportunities.
In 2020, our overall retention rate increased to 96%, up from 94%
in 2019. Significant regional differences in retention rates continue,
with Asia-Pacific reporting the highest voluntary leaver rate at
9.25%, an improvement from 11.87% in 2019.

0

Umicore Integrated Annual Report 2020

Performance

57

DIVERSITY

Umicore seeks to benefit as much as possible from diversity, forexample in gender, culture and ethnicity. Umicore believes that
more diverse management teams improve the quality of decision­
making.
Umicore developed a group policy on diversity to support an
inclusive work culture that offers equal opportunities, leading to ahigh level of employee engagement for all employees, irrespectiveof their diverse backgrounds. Diversity includes gender, religion,
race, national or ethnic origin, cultural background, social group,
disability, sexual orientation, marital status, age or political opinion.
Employees under 18 are trainees, apprentices or interns.

We are especially seeking broader cultural representation in ourmanagement teams. Considering that 60% of our revenues are
generated outside Europe and our growing global footprint, we
decided to act to ensure that non-Europeans are better represented
in our senior management. Currently, 20% of the top management
positions in Umicore are filled by non-Europeans, up from 18.5%
from 2019 and 16.7% in 2016. Our efforts continue, as a betterbalance in this regard will enable us to make business decisions thatare better aligned with the markets we serve.

Women are underrepresented at senior management level at
Umicore. While this can be partly ascribed to the fact that chemicalcompanies tend to attract fewer women, the career prospects fortalented women can still be improved within Umicore. In 2020, only
21.6% of Umicore employees were female, a slight increase from2019. This is attributed to the nature of industrial operations, where
candidates are usually male. Despite this, our commitment to an
inclusive and diverse workplace remains.
Our overall focus continues to be on recruiting and developing
female managers. In 2020, 30% of managers recruited were female.
Women in management roles have slowly increased from 18.6% in2010 to 23% in 2020. The number of overall managers grew again in
2020, leading to a slightly decreased share of women in these roles
from 23.1% in 2019 to 23% in 2020, despite our recruitment efforts.
Women in senior management decreased slightly to 10.7% in 2020,
down from 10.9% in 2019, and below our overall ambition of 15% by
2020. We remain committed to increasing the female representationin senior management at the earliest possible date.

Umicore employees covered 74 nationalities in 2020, as in 2019.

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58

EMPLOYEE ENGAGEMENT

In today’s dynamic environment, digital literacy and a mindset
focused on collaboration, transparency and self-organized learning
are crucial. If applied correctly, digital tools can improve efficiency,
productivity and innovation. Yet providing tools and training is notenough. The most difficult and most important step is to changefamiliar patterns and ways of thinking. Employees need to breakout of their comfort zone, share successes and failures transparently,
try out new approaches, network across regions and departments,
take the initiative and be empowered to do all this through anappropriate environment.

The vision of our digital workplace is to enable
everyone within Umicore to collaborate fromanywhere in the world.
KEEPING OUR COLLEAGUES CONNECTED THANKS TO THE
DIGITAL WORKPLACE

Launched globally in December 2019, Umicore’s Digital Workplace
project aimed to improve the efficiency, productivity and innovationof our employees by optimally using digital tools. The vision of
our digital workplace is to enable everyone within Umicore tocollaborate from anywhere in the world, sharing experiences andknowledge through a worldwide network as part of our daily routine.
Little did we know at the end of 2019 that the timing of the launchof Umicore’s digital workplace would come at exactly the right time,
given the spread of COVID-19 a few months later. By the time thefirst wave of the pandemic hit, Umicore employees had been using
the digital tools on a daily basis for several weeks already. Digital
meetings and calls had become part of our routine and collaboratingon documents for projects was becoming increasingly common.

DIGITAL HEROES TO THE RESCUE

When the COVID-19 pandemic made it impossible to hold physicalmeetings and so many of us had to work from home, Umicore
employees were familiar with the digital tools. As such, they
were able to keep our activities running and stay connected withcolleagues, almost as in normal times. Those in need of support
could rely on an ambassador community of ‘digital heroes’ topersonally help them solve technical issues. We also hosted aseries of specific learning sessions on digital workplace topics suchas remote working, efficient online meetings, file sharing andvirtual leadership.

DIGITAL ALTERNATIVESAs the uncertainties around COVID-19 and the corresponding safetymeasures persisted throughout 2020, many Umicore employees
began looking for innovative solutions to their daily challenges
which they found in the digital workplace. For example, audits
were conducted remotely; physical town hall meetings (where
information is typically shared to a broad live audience) weresuccessfully replaced by virtual town hall meetings; a digital
onboarding program was implemented to virtually welcome new
employees joining during the pandemic; and to maintain theconnection between colleagues, virtual social events were hosted,such as birthday celebrations. In our operations, smart glasses madeit possible to install production systems in some of our plants.
Amidst the many challenges of 2020, our digital workplace enabled
us to seize the opportunity to stay connected and engaged with ourglobal community of colleagues.

Umicore Integrated Annual Report 2020

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59

WORKING AT UMICORE
We aim to lead the way, both for our customers
and for our employees.
We strive to create a collaborative environment and a culture ofshared ideas, developing expertise and advancing careers, working
together on technologies that will benefit future generations andsetting new standards in one of the world’s most dynamic anddisruptive industries.

Saskia Bodvin, Thomas Morias and Kris Tolpe in the pyrometallurgical lab, OlenIn our state-of-the-art production processes technical operators,
production supervisors and engineers use their know-how and ideas
to benefit future generations. Our support teams play a critical rolein supporting the business growth by making sure our decisions
are commercially viable, enhancing our reputation, building newcustomer relationships or finding the right people who can build on
what we have already achieved.
Managers at Umicore work on projects that are as exciting as they
are challenging. R&D experts develop the technologies that address
issues from clean mobility to resource scarcity.

We seek to ensure career-long learning anddevelopment opportunities for our employees
and to promote the transferability of skills andknowledge across Umicore.

Leading for Excellence (L4E) is offered to a selected group of
managers in the Asia Pacific region to drive performance in theregion by fostering collaboration and engagement across sites andsharpening leadership skills.
Entrepreneurs for Tomorrow (E4T) is offered to a selected group of
middle to senior managers to develop corporate culture with highly
competent managers and promote cross-functional integration
within Umicore.
The Strategic Leadership Program is offered to a selected group ofsenior managers, organized in collaboration with INSEAD.
Participants move from exploration of the economic ‘macroenvironment’, through doing business in Asia, to the challenges ofcreating an agile strategy and an aligned organization anddeveloping their personal leadership style.
People work longer before retiring, particularly in Europe. Umicore
wants to ensure that people who are working well into their sixties
are provided with suitable, motivating and rewarding work and cantransfer their skills and knowledge to younger colleagues. This isaccomplished by training, maintaining their mental flexibility tocarry out new tasks, managing work-life issues, and providing
support in the transition from employee to retiree.

The Junior Management Program ( JUMP) is offered to a selectedgroup of junior managers using a “twin-coaching” format, bringing
together two participants from different regions and business units,
but within the same function family, to develop international
thinking, shadow best practices and provide exposure to otherbusiness units.
UMICORE.COM/CAREERS

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60

Leadership

Umicore Integrated Annual Report 2020

Leadership

61

Supervisory Board

From left to right, 1st row: Mark Garrett, Laurent Raets, Liat Ben-Zur, Mario Armero. Second row: Ines Kolmsee, Thomas Leysen, Marc Grynberg (invited by the Board), Géraldine Nolens.
3rd row: Marc Van Sande, Françoise Chombar, Eric Meurice, Koenraad Debackere

Umicore Integrated Annual Report 2020

Leadership

62

THOMAS LEYSEN

MARIO ARMEROLIAT BEN-ZUR

CHAIRMANMEMBERINDEPENDENT MEMBER

Belgian, 60

Spanish, 62

American, 44

DATE APPOINTED TO BOARD
10 May 2000 (date appointment Chair: 19 November 2008)

DATE APPOINTED TO BOARD
30 April 2020

DATE APPOINTED TO BOARD
25 April 2017

EDUCATION
Law – KU Leuven, Belgium

EDUCATION
Law – University Complutense of Madrid, Spain

EDUCATION
Electrical engineering – UC Davis, USA Business Administration –UCLA Anderson, USA

EXPERIENCE
Thomas Leysen became Chairman of Umicore in November 2008
after serving as Chief Executive Officer of Umicore since 2000.
During this mandate, he transformed the former Union Minière
from a non-ferrous company into an international materials
technology group called Umicore. He joined the group in 1993
as member of the Executive Committee, and successively managed
several industrial divisions.

EXPERIENCE
Mr Armero started his professional career at the Armero Law firmand later joined AT&T Spain. From 1992 to 1999 he served as
Secretary General at General Electric Plastics Spain, a position which
he held until 2001, when he was appointed Chairman and CEO of
General Electric Spain and Portugal, being the ultimate responsible
for all the Group’s Divisions in Iberia. In March 2008, he joined
Corporación Llorente, a diversified family owned industrial group, as
CEO. Following that he joined Ezentis as Executive Chairman. From2012 until 2020, Mr Armero has been the Executive Vice President of
ANFAC, the Spanish Car manufacturers association.

EXTERNAL APPOINTMENTS
Chair, Mediahuis, a European newspaper publishing group - Chair,
King Baudouin Foundation, Belgium - Member of the Supervisory
Board of Royal DSM
Expiration of mandate
Annual General Meeting of 2021
Chairman since
19 November 2008
Chairman of the Nomination & Remuneration Committee since
19 November 2008

EXTERNAL APPOINTMENTS
Advisor of Global Infrastructure Partners - Chairman of ENSO
- Independent Board member of Bankinter Consumer Finance- Member of the CEDE Foundation (Spanish Confederationof Executives)- Board member of non lucrative association
Junior Achievement

EXPERIENCE
Liat Ben-Zur has been Corporate Vice President for Modern Lifeand Devices Product Marketing Management at Microsoft since
September 2018.
Prior to joining Microsoft, she was SVP and Digital Technology
Leader at Royal Philips where she was responsible for driving
the connectivity and digital strategy, since 2014. She served
previously in several leadership positions at Qualcomm, a US
wireless telecommunications company, and was cofounder andChairwoman of the AllSeen Alliance, a consortium for an open
source, common language for the Internet of Things.
EXTERNAL APPOINTMENTS
No external appointments
Expiration of mandate
Annual General Meeting of 2023

Member of the nomination & remuneration committee since
9 December 2020
Expiration of mandate
Annual General Meeting of 2023

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Leadership63FRANÇOISE CHOMBARKOENRAAD DEBACKEREMARK GARRETT

INDEPENDENT MEMBERINDEPENDENT MEMBERINDEPENDENT MEMBER

Belgian, 58

Belgian, 59

Australian/Swiss, 58

DATE APPOINTED TO BOARD
26 April 2016

DATE APPOINTED TO BOARD
26 April 2018

DATE APPOINTED TO BOARD
28 April 2015

EDUCATION
Master Applied Language Studies Dutch, English, Spanish – Ghent
University, Belgium

EDUCATION
Engineering – Ghent University, Belgium Management – Ghent
University, Belgium Management – MIT Sloan School ofManagement, USA

EDUCATION
Economics – University of Melbourne, Australia Applied Information
Systems – Royal Melbourne Institute of Technology, Australia

EXPERIENCE
Françoise Chombar is co-Founder, Chief Executive Officer andManaging Director of Melexis, a producer of smart sensor and driversemiconductors for automotive, industrial and durable consumer
and health applications. She served previously as planning manager
at Elmos GmbH and operations manager and director at several
companies within the Elex group. Françoise was a mentor in the
Belgian women’s network Sofia for 17 years and is committed
to STEM and gender balance advocacy, for which she received a
Flemish Community Honour in 2019. In 2012, she was granted an
Honorary Ambassadorship for Applied Language by the Universityof Ghent. In 2018, she received the title of Science Fellow by the
VUB, University of Brussels.

EXPERIENCE
Prof. Dr. Ir. Koenraad Debackere has been with KU Leuven since
1995, where he teaches Technology & Innovation Management andPolicy. He has won numerous awards for his research, and in 2010
was awarded a Francqui Lecture Chair in economics and business.
From 2005 until September 2020 he was the general manager of KU
Leuven and member of the Board of KU Leuven.
EXTERNAL APPOINTMENTS
Chairman of the Board, KBC Group NV, Belgium - Member Board ofGovernors, RWTH Aachen University, Germany

EXPERIENCE
Mark Garrett has been Chief Executive Officer at Marquard & Bahls
AG, a Hamburg-based leading independent energy supply, trading
and logistics company, since August 2018.
Before joining Marquard & Bahls AG, he served as Chief Executive
Officer at Borealis AG, Austria, a position he had held since 2007.
Prior to that, he built an extensive career in the chemical industry
working with companies such as Ciba-Geigy and DuPont.

EXTERNAL APPOINTMENTS
CEO and Director, Melexis NV, Belgium - Chairwoman, Flemish STEM
Platform, an independent advisory group to the government of
Flanders - Independent Director, Soitec S.A., France

Expiration of mandate
Annual General Meeting of 2021

EXTERNAL APPOINTMENTS
CEO, Chairman of the Executive Board, Marquard & Bahls AG,
Germany - Non-Executive Chairman, Board of Directors, Axalta
Coating Systems Ltd., USA- Non-executive Chairman, Board of
Directors, OMV AG

Member of the nomination & remuneration committee since
9 December 2020

Expiration of mandate
Annual General Meeting of 2021

Expiration of mandate
Annual General Meeting of 2022

Member of the Audit Committee since
26 April 2018

Member of the Nomination & Remuneration Committee since
29 July 2017

Member of the Nomination & Remuneration Committee since
26 April 2018

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64

INES KOLMSEEERIC MEURICE

LAURENT RAETSINDEPENDENT MEMBERINDEPENDENT MEMBER

MEMBER

German, 50

French, 64

Belgian, 41

DATE APPOINTED TO BOARD
26 April 2011

DATE APPOINTED TO BOARD
28 April 2015

DATE APPOINTED TO BOARD
25 April 2019

EDUCATION
Process and Energy Engineering – Technische Universität Berlin,
Germany Industrial Engineering – École nationale supérieure desMines de Saint-Étienne, France Business Administration – INSEAD
Business School, France

EDUCATION
Economics – Sorbonne, France Mechanical Engineering – École
Centrale Paris, France Business Administration – Stanford Graduate
School of Business, USA

EDUCATION
Commercial Engineering – Solvay Brussels School of Economics &Management, Belgium

EXPERIENCE
Ines Kolmsee was Chief Executive Officer of Services & Solutionsat Aperam from October 2017 through September 2020. She
previously served as CEO of SKW Stahl-Metallurgie Group, a
specialty chemicals company with operations worldwide, COO andCTO at German utility EWE AG and CFO at Arques Industries AG.
EXTERNAL APPOINTMENTS
No external appointments
Expiration of mandate
Annual General Meeting of 2023
Member of the Audit Committee since
26 April 2011

EXPERIENCE
Eric Meurice was formerly President and Chief Executive Officer ofNetherlands-based ASML Holding, a major provider of advanced
technology systems for the semiconductor industry. He waspreviously EVP in charge of Thomson Multimedia TV Division andheld senior positions in several technology groups such as Intel, ITT,and Dell Computer.
EXTERNAL APPOINTMENTS
Non-Executive Director, Global Blue Group S.A., Switzerland- Non­
Executive Director, IPG Photonics Corp, USA - Non-Executive
Chairman, Board of Directors, Soitec S.A., France
Expiration of mandate
Annual General Meeting of 2021

EXPERIENCE
Laurent Raets joined Groupe Bruxelles Lambert (GBL) in 2006 andbecame Deputy Head of Investments in 2016. He began his careerin 2002 as an M&A consultant at Deloitte Corporate Finance, where
he was involved in buy and sell mandates, due diligence andvaluation assignments.
EXTERNAL APPOINTMENTS
Censor of the Board of Directors of Imerys S.A., France
Expiration of mandate
Annual General Meeting of 2022
Member of the Audit Committee since
25 April 2019

Chairman of the Audit Committee since
28 April 2015

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MARC VAN SANDEGÉRALDINE NOLENSKAREL VINCKSENIOR ADVISOR

BOARD SECRETARYHONORARY CHAIRMAN

Formerly EVP Energy & Surface Technologies

Belgian, 49

BelgianBelgian, 69(see Management Board)

ABOUT THE SUPERVISORY BOARDEDUCATION
Physics – University of Antwerp, Belgium Business Administration –Antwerp Management School, Belgium
EXPERIENCE
Marc Van Sande was appointed Executive Vice-President Energy &Surface Technologies in June 2010, after serving as CTO from 2005 to2010 and as EVP Advanced Materials from 1999 to 2005. Marc joined
Umicore in 1980, and held several positions in research, marketingand production. He was also responsible for the Energy & Surface
Technologies business group and China.

65

The Supervisory board’s cumulative industry experience is broad,covering automotive, electronics, chemicals, metals, energy andfinance sectors in addition to the fields of academia and science.It
also includes people experienced in the public and private sector
and members with experience in the different regions in which
Umicore is active.
Collectively, the Supervisory board possesses strong experience ofmanaging industrial operations and counts 8 active or former CEOs
in its ranks.
The board also has collective experience in disciplines that are
specifically relevant to Umicore’s non-financial Horizon 2020 goals
such as health and safety, talent attraction and retention and supply
chain sustainability.

READ MORE ABOUT CORPORATE GOVERNANCE(p. 87)

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66

Management Board

From left to right, 1st row: Marc Grynberg, An Steegen, Ralph Kiessling. 2nd row: Denis Goffaux, Filip Platteeuw, Géraldine Nolens, Stephan Csoma

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67

MARC GRYNBERG

FILIP PLATTEEUWAN STEEGEN

CHIEF EXECUTIVE OFFICERCHIEF FINANCIAL OFFICERCHIEF TECHNOLOGY OFFICER

Belgian, 55

Belgian, 48

Belgian, 50

EDUCATION
Commercial Engineering – Solvay Brussels School of Economics &Management, Belgium

EDUCATION
Applied Economics – Ghent University, Belgium Financial
Management – Vlerick Management School, Belgium

EDUCATION
PhD in Material Science and Electrical Engineering – KU
Leuven, Belgium

EXPERIENCE
Marc Grynberg was appointed Chief Executive Officer in November
2008 after heading the Automotive Catalysts business unit from2006 to 2008, and serving as CFO of Umicore from 2000 until
2006. He joined Umicore in 1996 as Group Controller. Prior tojoining Umicore, Marc worked for DuPont de Nemours in Brussels
and Geneva.

EXPERIENCE
Filip Platteeuw was appointed Chief Financial Officer in November
2012. He joined Umicore in 2004 and served as VP Corporate
Development from 2010 to 2012 and was instrumental instreamlining the business portfolio, including the divestment of
the copper and zinc smelting operations. Prior to Umicore, Filip
worked for KBC Bank, taking up positions in corporate banking,equity market research and investment banking.

EXPERIENCE
An Steegen joined Umicore and was appointed Chief Technology
Officer in October 2018, after serving as Executive Vice President
Semiconductor Technology and System R&D at imec, a leading
research center with a focus on nanoelectronics and digitaltechnology innovation.
Prior to joining imec in 2010, An worked at IBM’s Semiconductor
Research & Development center in Fishkill, NY and in the last
several years of service at IBM, was in charge of the bulk CMOS
technology development.

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Leadership68

GÉRALDINE NOLENSDENIS GOFFAUXSTEPHAN CSOMAEXECUTIVE VICE-PRESIDENT, CHIEF COUNSELEXECUTIVE VICE-PRESIDENT ENERGY & SURFACE TECHNOLOGIESEXECUTIVE VICE-PRESIDENT RECYCLING

Belgian, 49

Belgian, 53

Belgian, 56

EDUCATION
Master of Laws – University of Chicago Law School, USA European
Economic Law – Julius Maximilians Universität Würzburg, Germany
Law – KU Leuven, Belgium

EDUCATION
Mining Engineering – Université de Liège, Belgium

EDUCATION
Economics – UC Louvain, Belgium Chinese/Mandarin – Fudan
University Shanghai, China

EXPERIENCE
Géraldine Nolens was appointed Chief Counsel for the Group in2009 and joined the Management Board in 2015.
She started her career at the international law firm Cleary Gottlieb
Steen & Hamilton before joining GDF Suez (now Engie) in 2001,
where she was Electrabel’s Chief Legal Officer for Southern Europe,
France and new European markets. Géraldine’s career includes
periods working and living in the US, Germany, Italy and Belgium.

EXPERIENCE
Denis was appointed Executive Vice-President Energy & Surface
Technologies in 2018. He will take up the position of Executive
Vice-President Recycling as of 1 April 2021. Previously he served as
Chief Technology Officer from 2010 to September 2018 and EVP for
Precious Metals Refining from 2015 to 2018.
Prior to that, he occupied successive business line and country
management functions in China and Japan. Denis began his careerat Umicore with Research & Development in Olen, before moving towhat was then our Cobalt & Energy Products Business Unit.

EXPERIENCE
Stephan Csoma was appointed Executive Vice-President Recycling
in 2015, serving through March 31 2021. He served as EVP of theformer Performance Materials from 2012 to 2015, SVP Government
Affairs from 2009 to 2012, and SVP South America from 2005
to 2009.
Stephan joined Umicore in 1992 and set up Umicore’s first industrial
operations in China in the mid-1990s and went on to lead the Zinc
Chemicals business unit.

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RALPH KIESSLINGBART SAPEXECUTIVE VICE-PRESIDENT CATALYSISEXECUTIVE VICE PRESIDENT CATALYSIS (as of 1 March 2021)

German, 55

Belgian, 43

EDUCATIONPhD Chemical Engineering – University of Erlangen, Germany

EDUCATION
Commercial Science – Vlerick Management School, Belgium

EXPERIENCE
Ralph Kiessling was appointed Executive Vice-President Energy &Surface Technology as of 1 March 2021. Before this he was EVPCatalysis since 1 February 2019, after serving as SVP Operations for
Automotive Catalysts since 2015.

EXPERIENCE
Bart Sap was appointed Executive Vice-President Catalysis as of
1 March 2021. Bart joined Umicore in 2004 as a controller for
Cobalt & Specialty Materials and, after successive assignments
in Korea and Belgium covering finance, supply of raw materials,
business development and refining operations, he became Senior
Vice-President for Cobalt & Specialty Materials and Supply at the
beginning of 2020.

He previously occupied successive management functions inprocess technology, production and business controlling, including 5
years in China. In 2012 he moved to India where he built Umicore’s
automotive catalyst plant. Prior to joining Umicore, Ralph held
management positions in the Degussa group from 1995.

69

READ MORE ABOUT OUR MANAGEMENT APPROACH(p. 72)

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Leadership

Senior management
as of March 26, 2021

70

AN STEEGEN

CHIEF TECHNOLOGY OFFICER
Corporate Research & Development

FILIP PLATTEEUWMARC GRYNBERGCHIEF EXECUTIVE OFFICERCHIEF FINANCIAL OFFICER
FinanceGÉRALDINE NOLENSEXECUTIVE VICE-PRESIDENT
Chief Counsel

DENIS GOFFAUXSTEPHAN CSOMAEXECUTIVE VICE-PRESIDENTEXECUTIVE VICE-PRESIDENT

Recycling
as of April 1st, 2021

Recycling
until March 31, 2021

RALPH KIESSLINGEXECUTIVE VICE-PRESIDENT
Energy & Surface Technologies
as of March 1, 2021

CELINE VAN HAUTE
SVP Human Resources

EVELIEN GOOVAERTS
VP Group
Communications &Investor Relations

BART SAPEXECUTIVE VICE-PRESIDENT
Catalysis
as of March 1, 2021

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Leadership

KURT VANDEPUTTESVP Government Affairs

THOMAS ENGERTSVP Metal Deposition
Solutions

YVES VAN ROMPAEY
SVP Corporate
Research & Development

LOTHAR MUSSMANNSVP NBI - Catalysis &Connectivity, & IP

THOMAS JANSSEUNESVP NBI - Battery Materials& Recycling, & Digitalization

WANNES PEFEROEN
SVP Electro-Optic
Materials

PATRICK VERMEULEN
SVP Information Systems

ALAIN BYLVP Group Treasurer

FLAVIA LEONE
VP Group Tax

PIERRE VAN DE BRUAENE
SVP Environment,
Health & Safety

MARK CAFFAREY
President Umicore USA

SYBOLT BROUWER
VP Purchasing& Transport

GEERT BENS
VP Strategic Projects

JENS BLECHSCHMIDTHead of Internal Audit

KRISTL MATTON
Corporate Security

BERNHARD FUCHSSVP Precious Metals
Management & UMS

JOHAN RAMHARTERSVP Precious
Metals Refining

FRANZ-JOSEF KRONSVP Jewelry &Industrial Metals

ATSUYA HANAZAWA
President Umicore JapanCARSTEN GERLEMANSVP Umicore
South America

FRANK STREIGNART
SVP RBM Operations

JUNDONG LU
SVP RBM Sales

DONG-JOON IHM
Executive Chairman
Umicore Korea

DAVID FONG
SVP Umicore
Greater China

IGNACE DE RUIJTERSVP CSMERIK BRIJSVP Control & IT

BERNARD TONNON
VP RBM Process
Technology & Engineering

GEON-SEOG SON
VP RBM Research& Development

WILFRIED MÜLLER
SVP ProductManagement

JÖRG VON RODENSVP AC Global
Sales & Marketing

STEPHANIE DAM
VP AC Operations

JOAKIM REIMER THOGERSEN
VP Fuel Cells& Stationary Catalysis

GEERT OLBRECHTSVP AC Research& Technology

ENRICO CISCOVP Control & IT

LAWRENCE LI
VP AC ChinaJENSEN VERHELLEVP Precious
Metals Chemistry71

STEPHAN JANISVP Supply & Refining

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72

Management approach
The Umicore Way is the cornerstone ofeverything we do at Umicore.
We believe that materials have been a key element in furthering the
progress of mankind, that they are at the core of today’s life and willcontinue to be enablers for future wealth creation.
We believe that metal-related materials have a vital role to play, as
they can be efficiently and infinitely recycled, which makes them
the basis for sustainable products and services. We want Umicore
to be a leader in providing and creating material-based solutions tocontribute to fundamental improvements in the quality of life.
The overarching principles guiding our “Materials for a better life”
mission are:
VALUES We hold the values of openness, respect, innovation,
teamwork and commitment to be crucial to our success.
ENVIRONMENT AND SOCIETY We recognise that our commitment tofinancial success must also take into account the broader economic,
environmental and social impact of our operations.

● Code of Conduct, a comprehensive framework for ethicalbusiness practice;● Corporate Governance Charter, which sets out our management
philosophy and governance principles;● Sustainable Procurement Charter, which outlines ourcommitment to align our supply chain to our own values andpractices; and● Many internal policies developed in support of our vision andvalues such as Safety, Human Rights and Working Conditions,
Training & Development and Donations & Sponsorship.

GOALS AND PERFORMANCE 2016-2020

The Umicore Way outlines our values, the way in which we wish
to achieve our strategic goals and our overall commitment to theprinciples of sustainable development. Our Horizon 2020 economic
growth ambitions are tied to the megatrends of resource scarcity,
clean air and vehicle electrification. The social and environmental
objectives are clustered in three themes: Great Place to Work,
Eco-efficiency and Value Chain and society. These objectives reflect
our operational excellence and the aspects of our products andservices that we can further improve to turn sustainability into agreater competitive edge.

EMPLOYEES We strive to be a preferred employer of both current andpotential employees.

The supporting components of our Horizon 2020 strategy describedin this chapter, including policies, responsibilities and evaluation,
ensure a close monitoring of our economic, environmental andsocial performance.

BUSINESS INTEGRITY Wherever we operate, our reputation is a mostvaluable asset, and it is determined by how we act. We avoid any
action that would jeopardise our reputation.

RESPONSIBILITIESPOLICIESThe Umicore Way is supplemented by detailed company
codes including:Final accountability for all aspects of Umicore’s business lies with theexecutive committee.
The broad sustainability approach is guided by an interdepartmental
team with representatives from Environment, Health and Safety(EHS), Human Resources (HR), Finance and Procurement &Transportation. This team is responsible for developing andobtaining approval for sustainability objectives and guiding business
units in their efforts to contribute to these objectives.
At business group level, the economic/financial, environmental andsocial performance is owned by the Executive Vice-President of that
entity. At business unit level, these aspects are owned by the headof the business unit. At site level, the site manager is responsible forthe economic, social and environmental performance of the site.

MONITORING, EVALUATION AND
CONTINUOUS IMPROVEMENT

Corporate EHS and Corporate HR have developed detailed technicalguidance notes to assist the business units and sites, ensuringa collective understanding of concepts, definitions, roles andresponsibilities. Regular workshops and meetings are organised
each year at various levels of the organisation to share
best practices.
Progress towards our objectives is measured annually against a
set of KPIs reported through a group data management system.
The data is collected and reported at the relevant entity level:site, business unit or business group. Social and environmental
performance indicators that are relevant and material to Umicore’s
operations are also measured and reported. Corporate EHS,
Corporate HR and Corporate Finance aggregate the performanceof the business units to evaluate Umicore’s overall progress towards
the Horizon 2020 objectives.
On-site data verification relating to social and environmental
performance and progress towards objectives is carried out
internally. In addition, Umicore uses an assurance provider to checkits social and environmental data. This assurance has been carriedout by PricewaterhouseCoopers (PwC) since 2011. PwC evaluates
the completeness and reliability of the reported data as well as the

Umicore Integrated Annual Report 2020

Leadershiprobustness of the associated data management system. Wherevernecessary, performance indicators and reporting processes arereviewed and updated after every assurance cycle, as part of acontinuous improvement process.

ECONOMIC & FINANCIAL PERFORMANCEGOALS AND PERFORMANCE 2016-2020

Based on the validity analysis of the megatrends relevant for
Umicore’s Vision 2015 strategy, we identified specific growthareas where Umicore can contribute to solve certain societal andenvironmental problems. These growth areas form the basis of the
Horizon 2020 strategy and are expected to enable Umicore to double
its adjusted EBIT between 2014 and 2020.

OPERATIONAL RETURNS

Umicore seeks to generate economic value through our existing
businesses and any acquisitions or organic growth initiatives that
we undertake, in line with our Horizon 2020 strategy. This entails
generating a return on capital employed (adjusted pre-tax operating
profit/average capital employed for the period) in excess of ouroverall pre-tax cost of capital.
This cost of capital can vary over time in function of our risk profileand the state of the world’s debt and equity markets. The return on
capital employed (ROCE) targeted for the Group in our Horizon 2020
strategy is over 15%.
Investments are assessed on a case-by-case basis: acquisitions
are expected to be earningsenhancing in the early phase of
their integration and value-enhancing shortly thereafter. Similar
criteria exist for organic investments, although the pursuit oflonger-term growth projects invariably requires a longer view on
expected returns.
In terms of operational performance, emphasis is placed on ROCE.
We deal with precious and other rare metals and we therefore
have a relatively high working capital intensity. Management

is therefore incentivised to optimise performance both from anearnings perspective and by minimising capital employed.

SHAREHOLDER RETURNS

Umicore aims to create value for its shareholders. This is achieved
through the development of a compelling strategy and a strong
track record of delivering a solid performance against the strategic
objectives. We seek to grow our existing businesses while
maintaining or establishing strong leadership positions on the backof innovative technologies (see below). Shareholder returns dependon the valuation of the Umicore stock and are supported by thepayment of dividends.

FINANCIAL STRENGTH

Umicore aims to safeguard the business through sound financial
management and by maintaining a strong balance sheet. While wehave no fixed target regarding debt levels, we aim to maintain an
investment grade status at all times. We also seek to maintain ahealthy balance between short and longer-term debt and between
debt secured at fixed and floating interest rates. This approach,coupled with strong cash flow generated from operations, allows us
to self-fund the majority of our growth initiatives.

RESEARCH AND DEVELOPMENT

As a materials technology company, the future success andsustainability of our business depend on our ability to develop
and market innovative products and services. We invest consistently
in research and development (R&D), with the equivalent of 5% to 7%of revenues typically dedicated to R&D every year.

MARKET PRESENCE

As part of our Horizon 2020 strategy, Umicore seeks to maintainmarket leadership positions in recycling and clean mobility
materials. The nature of our business, which consists of products forhighly specific applications, means that we do not have a presencein any country or region which makes up a significant part of thatcountry or region’s economy. Our business is global in nature with 50
production sites in 33 countries.

73

ECONOMIC AND FINANCIALPERFORMANCE POLICY

Our approach to financial and economic management derives fromour vision, values and organisational principles as described in The
Umicore Way. Specific internal policies have been developed toframe the Company’s approach to specific financial and economic
aspects including: Dividend, Financing and Funding, Transfer Pricing,
Credit Management, Hedging, Capital Expenditure and Mergers& Acquisitions.

ECONOMIC AND FINANCIALPERFORMANCE RESPONSIBILITY

Accountability for the overall economic and financial performance of
Umicore lies with the Chief Executive Officer while each Executive
Vice-President is responsible for the financial performance of
his/her business group. The Chief Technology Officer and his/herorganisation has oversight for the technology portfolio of the Groupand the overall research and development activities.
At business unit level, the head of the business unit is responsible
for the operational and financial performance of the business
unit. The Chief Financial Officer has overall oversight of Umicore’s
financial and economic performance and is supported by a Corporate
Finance team that includes specific expertise centres covering
aspects such as tax, treasury, accounting & control, and the internal
control environment. At business unit level, financial controllers are
responsible for managing the financial and reporting aspects of thebusiness unit.

VALUE CHAIN & SOCIETY PERFORMANCEGOALS AND PERFORMANCE 2016-2020

The relationship between customers and suppliers is an essential
element to building financial and economic value and plays a keyrole in the promotion of social and environmental best practices.
The Umicore Way also covers the relationships with our various
stakeholders. The value chain and society objectives cover Umicore’s
presence and impact upstream with suppliers, and downstream
contribution of our products and services to a better life. The

Umicore Integrated Annual Report 2020

Leadershipperformance review of these material topics is reported in Value
Chain and Society(p. 39).
While Umicore’s value chain and society objectives determine a
special focus through 2020, we believe it is equally important tocontinuously monitor, control and report our relationship with all theother stakeholders. Information on our stakeholder groups is listed
in the Stakeholder Engagement(p. 16). In addition, we report on thefollowing topics in the Value Chain Statements(p. 181) section:● Monitoring of the supplier assessment for indirect procurement,
note V3(p. 184)
● Product regulatory compliance,note V4(p. 185)
● Monitoring of our donations, note V5(p. 186) The following
specific management approach applies to both materials topics
and the underlying performance indicators.

VALUE CHAIN AND SOCIETYPERFORMANCE POLICY

Our approach to stakeholder engagement derives from the vision,values and organisational principles found in The Umicore Way.
Specific charters/policies have been developed to frame specificelements of our approach to stakeholder engagement, including
the Sustainable Procurement Charter, Responsible global supply
chain of minerals from conflict-affected and high risk areas
Policy, Human Rights & Working Conditions Policy and ExternalCommunications Policy.

VALUE CHAIN AND SOCIETYPERFORMANCE RESPONSIBILITY

Our presence and impact both upstream and downstream isbased on a business-specific approach whereby all business
units are required to identify and engage with their respective
suppliers, customers and stakeholders. In addition, a teamcomprising members of various departments, including Corporate
EHS, Corporate HR, Group Communications, Corporate Finance andProcurement & Transportation, meets regularly to map the overall
stakeholder expectations and to convene, whenever necessary,internal or external stakeholder dialogue sessions.

VALUE CHAIN AND SOCIETYPERFORMANCE BOUNDARY

The value chain and society theme focuses on potential impacts
on society incurred through our activities, products and services.
For reporting, all entities are considered. While we focus primarilyon those of our activities that are directly linked to clean mobility
and recycling, other initiatives targeting suppliers, customers orsociety are tracked and appropriately reported, whether throughcommunications such as this annual report or through other specificcommunication channels.

ENVIRONMENTAL PERFORMANCEGOALS AND PERFORMANCE 2016-2020

In The Umicore Way, Umicore commits to continually improve its
environmental performance. As a materials technology company,
we have defined energy efficiency and the reduction of metal
emissions as core environment-related objectives in our Horizon
2020 strategy. These objectives represent what we believe to be
the most material environmental aspect of our business and theones that are most important to our various stakeholders (seeMateriality)(p. 22). The performance review of energy efficiency isreported in Eco-Efficiency(p. 45).
While Umicore’s environmental objectives through 2020 focus
on energy efficiency and the reduction of metal emissions, we
believe it is equally important to continuously monitor, control andreport the performance of our organisation in relation to otherenvironmental aspects. We do that using the same measurement
tools indicated in our General Management Approach. These
indicators monitor how we are building on the Vision 2015
achievements in terms of environmental performance. These
underlying performance indicators, detailed in the Environmental
Statements(p. 188) section, include:●●●●

Emission to water and air, note E2(p. 189)
Greenhouse gases, note E3(p. 192)
Water consumption, note E5(p. 194)
Waste volumes, note E6(p. 195)

74

● Control and remediation of historical pollution,note E7(p. 195)
● Regulatory compliance and management systems, note
E8(p. 197)
The following specific management approach applies to bothmaterial topics and the underlying performance indicators.

ENVIRONMENTAL PERFORMANCE POLICY

Our approach to environmental management derives from thevision, values and organizational principles found in The Umicore
Way. An internal Group EHS Guidance Note details the approach tomeasuring and reporting on each relevant environmental indicator.
A specific internal policy on energy efficiency was rolled out
throughout the Group from 2011 to 2015 and created a high levelof awareness and commitment at sites and within business units
to strive for continual energy efficiency improvement. In addition,
Umicore encouraged all business unit initiatives that increased
recycling potential. On a global scale, metals recycling reduces theenvironmental impact related to the acquisition and transformationof metals into products.

ENVIRONMENTALPERFORMANCE RESPONSIBILITY

Umicore’s environmental performance and impact accountability lies
with the executive committee. In the executive committee, the ChiefCounsel is Executive Vice-President for Environment, Health and
Safety, Corporate Security and Internal Audit and responsible for allenvironmental matters and is supported by the Senior Vice President
Environment, Health & Safety. The Executive Vice-Presidents are
responsible for the overall environmental performance of theirbusiness group. At business unit level, the head of the business
unit is responsible for the overall environmental performance. The
general manager of each site has a similar responsibility at site level.

ENVIRONMENTAL PERFORMANCE BOUNDARYEnergy efficiency performance and underlying performanceindicators contribute to reducing our impact on the environment, forexample through an expected reduction of our carbon footprint oflower impact or the metal emissions on air and water.

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SOCIAL PERFORMANCEGOALS AND PERFORMANCE 2016-2020

As set out in The Umicore Way, we strive to be a preferred employer
for both current and potential employees and to act and operate inline with the expectations of society. We have defined three social
objectives within the context of our Horizon 2020 strategy: reducing
losttime accidents to zero, further reducing occupational exposure
to specific metals and increasing our diversity, talent attraction
and retention and employability. We also have objectives which
relate to our broader social impact and these can be found in ourManagement Approach to Value Chain and Society, later in thischapter. These objectives were defined as material topics in themateriality assessment both by internal and external stakeholders.
Talent management is key to reaching our desired business growth.

● Monitoring of contractor safety, note S7(p. 208) The following
specific management approach applies to both materials topics
and the underlying performance indicators.

SOCIAL PERFORMANCE POLICY

Our approach to social performance derives from the vision, values
and organisational principles found in The Umicore Way. An internalGroup Social Reporting Guidance Note provides detailed guidanceon measuring and reporting on social performance. Specific internal
policies have been developed to frame specific elements of oursocial management approach including Safety, Human Rights andWorking Conditions and Training & Development. In addition,
Umicore has a Global Framework Agreement on Sustainable
Development in place with international trade unions.

SOCIAL PERFORMANCE RESPONSIBILITY

Attracting, developing and retaining talent in competitive labour
markets support the business units in their growth plans. In addition,
while increasing the diversity of our workforce is in line withexpectations from society, it should also increase our chance of
success. Given the ageing population and the need for longer
careers, we are also putting programmes in place to increase theemployability of our workforce. The performance review of thesematerial topics, including zero accident and reducing occupational
exposure, is reported in Great Place to Work(p. 54).

Umicore’s social performance and impact accountability lies with theexecutive committee.

While Umicore’s social objectives determine a special focus through2020, we believe it is equally important to continuously monitor,
control and report our social performance in other areas. We dothat using the same measurement tools indicated in our General
Management Approach.

The general manager of each site has a similar responsibility
at site level. A regional Human Resources organisation exists tomanage social aspects at regional and country level, and to provide
structural support to the business units in all aspects of humanresources management.

These underlying performance indicators, detailed in the Social
Statements(p. 198) section, include:

SOCIAL PERFORMANCE BOUNDARY● Monitoring of workforce demographics, note S2(p. 200)
● Monitoring of human rights, compliance and risk, note S4(p. 204)
● Monitoring of employee health aspects beyond metal exposure,notes S5(p. 204)-S6(p. 205)

75

In the executive committee, the CEO has oversight responsibilities
for Umicore’s Human Resources issues and is supported by the SeniorVice President Human Resources. The Executive Vice-Presidents are
responsible for the social aspects of their business group. At business
unit level, the head of the business unit is responsible for the overallsocial performance.

Social performance and the underlying performance indicators havea direct impact on Umicore’s workforce (enhanced engagement andwell-being at all levels and attracting and retaining the right skills).

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76

Managing risk effectively
OUR INTERNAL CONTROL SYSTEM

Internal control mechanisms exist throughout Umicore to provide
management with reasonable assurance of our ability to achieve ourobjectives. They cover:●●●●

M. Ko and Y. Kang at Cheonan

Each business unit operates in an environment which carries
specific growth expectations and differing degrees of market andtechnological uncertainty that could impact strategic objectives. As
such, the primary source of risk and opportunity identification lies
within the business units.
Similarly, each business unit is responsible for mitigation of its own
risks. Mitigating actions are systematically reported corresponding to
the respective strategic objectives and identified risks.

Effectiveness and efficiency of operations
Reliability of financial processes and reporting
Compliance with laws and regulations
Mitigation of errors and fraud risks

Umicore adopted the COSO framework for its Enterprise Risk
Management and has adapted its various constituents within its
organization and processes. “The Umicore Way” and the “Code of
Conduct” are the cornerstones of the Internal Control environment;
together with the concept of management by objectives andthrough the setting of clear roles and responsibilities they establish
the operating framework for the company.
Specific internal control mechanisms have been developed bybusiness units at their level of operations, while shared operational
functions and corporate services provide guidance and set
controls for cross-organizational activities. These give rise to
specific policies, procedures and charters covering areas such as
supply chain management, human resources, information systems,
environment, health and safety, legal, corporate security andresearch and development.

Umicore operates a system of Minimum Internal Control
Requirements (MICR) to specifically address the mitigation offinancial risks and to enhance the reliability of financial reporting.
Umicore’s MICR framework requires all Group entities to comply witha uniform set of internal controls in 12 processes.
Within the Internal Control framework, specific attention is paid
to the segregation of duties and the definition of clear roles andresponsibilities. MICR compliance is monitored by means of self­
assessments to be signed off by senior management. The outcome
is reported to the Management Board and the Audit Committee.
Out of the 12 control cycles, 2 cycles (Procure To Pay, Information
Technology Management) were assessed in the course of 2020
by the 99 control entities currently in scope. Risk assessments
and actions taken by local management to mitigate potential
internal control weaknesses identified through prior assessments
are monitored continuously. The Internal Audit department reviews
the compliance assessments during its missions.
The aim of our risk management system is to enable the company
to identify risks in a proactive and dynamic way and manage or
mitigate risks to an acceptable level wherever possible.

Specific corporate departments are also tasked with managing andmitigating certain risks under the auspices of the Management
Board. These risks cover Group-wide elements that extend
beyond the purview of individual business units. These include
environmental risks, financial risks, etc.

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KEY RISKS AND OPPORTUNITIESWE TAKE A BALANCED APPROACH TO MANAGING RISK AND SEIZE OPPORTUNITIES TO DELIVER ON OUR STRATEGIC GOALS

1RISK &OPPORTUNITYSTRATEGIC
FOCUS AREA

REGULATORY& LEGAL
CONTEXTECONOMICPERFORMANCEVALUE CHAIN
AND SOCIETY
ECO-EFFICIENCY23

SUSTAINABLE TECHNOLOGY && ETHICALSUBSTITUTION
SUPPLYECONOMICPERFORMANCEVALUE CHAIN
AND SOCIETY

4

5

CYBER
SECURITY

MARKET

ECONOMICPERFORMANCEVALUE CHAIN
AND SOCIETY
ECO-EFFICIENCYECONOMICPERFORMANCEECONOMICPERFORMANCEVALUE CHAIN
AND SOCIETY

6

7

8

METAL PRICE &TALENT
CLIMATE &AVAILABILITY ATTRACTION & ENVIRONMENTRETENTION
ECONOMICPERFORMANCEECONOMICPERFORMANCEGREAT PLACETO WORKVALUE CHAIN
AND SOCIETY
ECO-EFFICIENCYCHANGE INRISK PROFILECHANGE IN
OPPORTUNITY
PROFILE
Key:   increase   no change

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1 REGULATORY AND LEGAL CONTEXTPOTENTIAL IMPACT

CHANGE IN CONTEXT

Umicore is exposed to changes in the regulatory environment in the
countries or regions where it operates. Umicore’s businesses standto benefit from certain regulatory trends, notably those regarding
more stringent emission controls for vehicles, low carbon mobility,
electrification and enforced recycling of end-of-life products.

Worldwide, changes to existing product-related legislation and theintroduction of new legislation might impact our business. Although
the European REACH regulation is still the most relevant for Umicore,
Korean REACH is gaining importance. For more information, see noteV4(p. 185).

Some regulations, such as environmental or product-related laws,
can present operational challenges, higher costs and a potentially
uneven competitive environment.

The push towards clean mobility is stronger than ever, with various
governments including green recovery measures and stimuli forcleaner mobility in their crisis recovery packages, in particular in
Europe and China, and regulatory initiatives to protect air quality
and reduce greenhouse gas emissions in several regions. Europe
recently reconfirmed its ambition to achieve zero-emission mobility
and remains committed to increasingly more stringent CO2 emission
targets. In China, the Ministry of Industry and Information Technology
announced an extension of the New Energy Vehicle (NEV) subsidy
plan from 2020 until end 2022. It also confirmed its long-term
commitment to achieve a target penetration rate of 20% NEVs in2025 and 50% by 2035, which is likely to boost electrification in the
coming years.

Data protection, IP and IP protection-related matters impact
technology-driven businesses.

Geopolitical conditions, trade and tariffs continue to be a factor in
Umicore’s trans-border activities.

MEASURES TAKEN BY UMICORE

Umicore provides continuous training on regulatory requirements toensure compliance with applicable legislation.
To ensure ongoing compliance with environmental legislation on our
industrial sites, Umicore has a well-established EHS compliance audit
program and constantly monitors changes in legal requirements
where we operate. For more information, see Statements, note E8.
Umicore continues to play an active role in informing legislators ofvarious emission control technologies for both diesel and gasoline
powered vehicles, to help legislators make informed decisions about
future emission and testing norms.
We monitor that our products have the freedom to operate and we
proactively manage our patent portfolio. Umicore trade complianceclosely follows and responds to global trade conditions.
Umicore monitors closely all changes in interpretation as well as
guidance documents that might affect its REACH implementation
strategy. In 2020 we submitted 27 additional substances forregistration under REACH due to new business developments.
As part of regular maintenance, we updated 76 REACH dossiers.
Umicore has submitted 2 registrations in Korea in 2020 for priority
chemical substances.

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2 SUSTAINABLE AND ETHICAL SUPPLYPOTENTIAL IMPACT

Umicore requires certain metals or metal-containing raw materials
to manufacture its products and feed its recycling activities. Someof these raw materials are comparatively scarce and require very
specific sourcing strategies. Obtaining adequate supplies of thesematerials is important for the ongoing success and growth ofour business.
Some metals are also found in regions facing social challenges.
Trading in precious metals and minerals can be used to financearmed conflict, cause human rights abuses, draw upon forced or
child labor and support corruption and money laundering. We ensurethat procurement of minerals from conflict-affected and high-riskareas is in line with Umicore’s values, while providing an advantage
to our customers.

CHANGE IN CONTEXTExisting and upcoming laws aiming to drive the responsible sourcing
of conflict minerals (tin, tantalum, tungsten and gold), haveincreased the visibility and concern on the conditions around conflictmineral sourcing in public discourse.
COVID-19 and the measures taken to contain contagion could havean impact on the availability of materials and in general on the
supply chain.

MEASURES TAKEN BY UMICORE

Only limited and temporary impacts due to COVID-19 were reportedon Umicore’s supply chain.
Umicore implemented policies and measures covering humanrights, the right for workers to organize, collective bargaining,equal opportunities and non-discrimination, banning of childlabor, banning of forced labor, consistent with International
Labour Organisation (ILO) standards. These commitments aresupported through a Global Framework Agreement on Sustainable
Development with IndustriALL Global Union which was renewedin 2019.

In addition to existing policies and charters such as the Umicore
Code of Conduct, Human Rights Policy and Sustainable Procurement
Charter, Umicore also has a specific policy for “Responsible global
supply chain of minerals from conflict-affected and high-risk areas”.
In 2020, Umicore again received third-party validation for theapplication of its Sustainable Procurement Framework for Cobalt,
which is aligned with the OECD ‘Due Diligence Guidance for
Responsible Supply Chains from Conflict-Affected and High-Risk
Areas’. Umicore continues to ensure that its production operations
are certified as conflict-free and receives site and metal-specificresponsible sourcing certifications from the LBMA and RJC. For more
information, see note V3(p. 184).
Umicore remains the first cathode material producer to offer certified
materials from a clean and ethical origin to its customers.
In 2020, Umicore achieved a Platinum EcoVadis rating, placing thegroup among the top 1% of their industry peers.
We use our long-standing and growing experience in sustainablesourcing to advocate for more responsible practices in industry.
To read more about some of our advocacy work, see Stakeholder
Engagement(p. 21).

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3 TECHNOLOGY AND SUBSTITUTION
POTENTIAL IMPACT

Umicore is a materials technology group with a strong focus on thedevelopment of innovative materials and processes. The choice anddevelopment of these technologies for existing and new markets
represents the single biggest opportunity and risk for Umicore.
Achieving the best cost-performance balance for materials is apriority for Umicore and its customers. There is always a riskthat customers will seek alternative materials for their products
should those of Umicore not provide this optimum balance.
The risk is especially present in businesses producing materials
containing expensive metals (especially those with historically
volatile pricing characteristics).

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CHANGE IN CONTEXTMEASURES TAKEN BY UMICORE

In vehicle emission control, regulatory debates have reinforced theneed for a broad spectrum of technologies for both gasoline anddiesel applications. These technologies need to be optimized for
performance and for cost.

Previous years’ R&D investments have brought great success andcreated a space to expand R&D positioning to adjacent and newmarkets within Umicore’s field of expertise. In 2020, overall spend
was equivalent to 6.9% of revenues. The Innovation Fit for Future
program focusing on innovation excellence best practices protects
Umicore’s technology leadership and future growth.

Trends in rechargeable battery materials for automotive applications
have underscored that NMC material platforms with increasing
nickel content as well as medium nickel low cobalt content are
the technologies of choice for customers in current and upcoming
electrified vehicle platforms. Besides the focus on high performing
battery materials, novel processes are being developed to decrease
cost and environmental impact across the entire battery value chain.

Every year, the Management Board identifies innovation projects
which are key to achieving our short term and long-term growthambitions and cover product and process developments. These
technologies are followed up closely by management to ensure ontime delivery of new and innovative products to the market.

Umicore patents disruptive technologies. In 2020, Umicore registered
63 new patent families.
For more information, see Research, development &innovation(p. 49).

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4 CYBER SECURITY
POTENTIAL IMPACT

Umicore’s production plants and services highly depend on theavailability of IT services.
Unavailability of services, disruption of the supply chains orinterruption of our production facilities due to cyber-attacks could
have a major impact on our customers. A compromise in theconfidentiality of intellectual property would negatively impact ourcompetitive advantage. Unauthorized modification of financial data
would jeopardize accurate reporting to shareholders.

CHANGE IN CONTEXT

Cyber-attacks may be very focused and advanced. The expanding
threat landscape and expanding digital footprint is leading to anincrease in cyber-attacks. Several cases of industrial manufacturingbusinesses being interrupted for several weeks as the result ofa cyber incident have been extensively covered in the media. In
addition, due to the increased use of a digital work environment(on site and at home), the role of IT services in delivering seamless
access to all corporate resources as well as ensuring information
security is more important than ever.

82

MEASURES TAKEN BY UMICORE

Umicore continues to regularly assess and improve its information
security, and the state of cyber resilience of its IT landscape, against
evolving threats.
A security roadmap is being implemented which includes projects in
preparation for an ISO27001/2 certification and initiatives to increaseawareness across the Group on the importance of informationand cyber security. Third party expert security assessments are
made and the corporate cyber security team is being expanded.
Umicore increases its investments in security-related IT systems andapplications such as backup processes, virus and access protection,authentication and encryption tools. Security-related IT controls
are being extended and are tested as part of Umicore’s external
audit process.
The state of cyber security is reported to the Management Board
semi-annually and is followed-up by the Audit Committee.

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5 MARKET
POTENTIAL IMPACT

The main industries served by Umicore are automotive (clean
mobility materials, recycling), consumer electronics (rechargeable
battery materials, recycling, coating and electroplating solutions)and non-ferrous metal mining and refining industries (recycling
activities). Umicore is sensitive to any major growth or global
reduction in activity levels or market disruptions in these industries.

CHANGE IN CONTEXTIn 2020, the global automotive industry was significantly impacted
by the COVID-19 pandemic with a marked contrast between the first
and the second half of the year.
In the first half of 2020, car OEMs had to shut down their production
plants and close their dealerships in several key regions as a resultof government imposed lock-downs. Global car demand started topick up again in the second half of 2020, albeit with discrepancies
between the regions in terms of timing, speed and intensity of
the recovery.
Car production in the second half grew by more than 40%
sequentially (yet declined by 2% compared to the second halfof 2019), with China being the clear driving force behind the global
recovery. Other key markets started to pick up later and more
gradually and still recorded negative growth for the second half ofthe year.
The sharp economic contraction and the lower industrial production
induced by COVID-19 also had a significant and a more prolonged
impact on the heavy-duty diesel market segment in 2020 except
in China.

The global EV market was profoundly affected by the COVID-19
pandemic in the first half of the year and rebounded in the second
half of the year, primarily driven by strong EV growth in Europe
and, later in the year and to a lesser extent, by increasing EV sales
in China.
In China, battery demand for EVs remained bleak until the summer
and turned positive in the second half of the year, albeit compared
to a depressed second half in 2019. The demand for cathodematerials for EVs has lagged the anticipated growth in 2019 and2020, resulting in significant excess capacity and pressure on thepricing environment.
In Europe, battery demand for EVs recorded strong momentum
throughout 2020, in particular in the second half of the year, anddoubled compared to 2019. This growth was driven by new models
launched by car OEMs to comply with the more stringent CO2
directive, local incentives for EV buyers in several countries as part oftheir recovery plans and more environmentally-friendly choices by
consumers when purchasing a new car.
The slowdown in consumer electronics demand continued alongwith a reduced demand for NMC cathode materials used in energy
storage applications.

83

MEASURES TAKEN BY UMICORE

Umicore is delivering on its growth strategy in clean mobility
materials and recycling.
Despite the severe disruption brought by the COVID-19 pandemic in
its end-markets, Umicore posted its strongest financial performance
ever, boosted by an exceptional metals price environment. This
underscores Umicore’s resilience and the merits of the Horizon
2020 strategy that builds on the complementarity of our activities.
After a solid performance in the first half of 2020, with a strong
result in Recycling offsetting the impact of the automotive industry
downturn, the second half of the year was marked by a strong
sequential improvement in revenues and earnings. This has been
driven by continued robust operational performance and buoyant
metal prices, and strong growth in Catalysis, thanks to Umicore’s
strong market position in gasoline technologies for light-duty
vehicles, particularly in China and Europe, as well as higher sales ofheavy-duty diesel and fuel cells catalysts.
Umicore should continue to benefit disproportionally from theaccelerating penetration of electromobility given our broad portfolioof material technologies certified for the most stringent automotive
requirements and our industrial-scale production capabilities.
For more information, see Economic Review(p. 29).

In recycling, our process remains unique, supported by high metal
prices and high activity levels with favorable trading conditions in
2020, despite the COVID-19 crisis. The overall supply of industrial by­
products remained favorable over the period, despite the temporary
shutdowns of certain mining activities in response to COVID-19. Also
the supply of end-of-life materials remained strong.

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6 METAL PRICE AND AVAILABILITYPOTENTIAL IMPACT

Umicore’s earnings are exposed to risks relating to the prices of themetals which we process or recycle. These risks relate mainly to theimpact that metal prices have on the surplus metals recovered frommaterials supplied for recycling, and concern platinum, palladium,rhodium, gold, silver and a wide range of base and specialty metals.
For some metals quoted on futures markets, Umicore hedges a
proportion of its forward metal exposure to cover part of the future
price risks.
Umicore also faces transactional price risks on metals. The majorityof its metal-based transactions use global metal market references.
If the underlying metal price were constant, the price Umicore
pays for the metal contained in the raw materials purchased would
be transferred to the customer as part of the price charged forthe product. However, because of the lapse of time between theconversion of purchased raw materials into products and the saleof products, the volatility in the reference metal price creates
differences between the price paid for the contained metal and theprice received. Accordingly, there is a transactional exposure to any
ﬂuctuations in price between the time raw materials are purchased(when the metal is “priced in”) and the time the products are sold(when the metal is “priced out”). The Group’s policy is to hedge thetransactional risk to the maximum extent possible, primarily throughforward contracts.

for the balance, procured from primary metal producers. Umicore’s
ability to procure the required quantity of such metals is key todetermine its ability to produce the materials which have beenordered by the customers.

CHANGE IN CONTEXT

Prices for precious metals strengthened further in 2020, reachinghistorically high levels for precious metals and PGMs. The price ofrhodium in particular increased significantly in the second half ofthe year, in a context of tight supply and high demand from thecar industry.
Demand for cobalt containing products was mixed in 2020, severely
hit by the COVID-19 crisis in the first half of the year, showing firstsigns of recovery in the second half. , Cobalt price remained stable
over the course of the year.

84

MEASURES TAKEN BY UMICOREOver the course of 2020 and early 2021, Umicore entered into
additional forward contracts securing a substantial portion of its
structural price exposure for certain precious metals in 2021, 2022
and 2023, thereby increasing earnings predictability. For 2021 and
2022, approximately two thirds of the expected gold and palladium
exposure and somewhat less than half of the expected silver
exposure have been locked-in. In addition, close to one third of the
expected platinum exposure for 2021 has been hedged. In spite of
the absence of a liquid futures market, Umicore has entered into
forward contracts locking in a minority of its expected 2022 and 2023
rhodium exposure.
Umicore is continuously increasing production of precious andscarce metals from its recycling capabilities, thereby securing asignificant proportion of its metals needs. In addition, the group
maintains close commercial relationships with leading primary
metals producers from which it procures metals through annualor evergreen contracts.

For more information on the structural risk and on the transactional
and inventory risk related to the metal prices, see note F3(p. 123).
Materials produced by Umicore contain precious or scarce metals
which are partly sourced from in house recycling operations and,Umicore Integrated Annual Report 2020

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7 TALENT ATTRACTION AND RETENTIONPOTENTIAL IMPACT

The attraction and retention of skilled people are important factors inenabling Umicore to fulfil its strategic ambitions and to build further
expertise, knowledge and capabilities in the business. Being unable
to do so would compromise our ability to deliver on our goals.
The Horizon 2020 strategy was predicated on growth for Umicore,especially in Asia where labor markets are highly competitive andfluid. Umicore’s challenge is to attract and retain talent at all sites andin all regions on a sufficient scale and at an appropriate pace.

CHANGE IN CONTEXTIn 2020 the novel coronavirus (COVID-19) pandemic severely affected
people, society and industries globally.

85

MEASURES TAKEN BY UMICORE

In response to the COVID-19 outbreak, Umicore rolled out its business
continuity plans and took precautionary measures to keep its people
healthy and to ensure that the workplace is safe. Umicore rapidly
adjusted its production capacity where needed and furloughed partof its workforce; when all production plants resumed operations,most furloughed employees returned to work. In administrative
positions, working from home was adopted.
Umicore introduced strict hygiene and other precautionary measuresin its facilities worldwide in response to the COVID-19 pandemic
and delivered surgical masks for private use to the homes of all
employees worldwide at a time when they were unavailable on
the open market. A dedicated task force continues to monitor its
operations globally with a focus on protecting employees’ health.
To meet recruitment needs in this COVID-19 context, we moved
to virtual recruitment and virtual onboarding wherever possible.
Operators were recruited and onboarded with utmost safety andhealth measures.
Umicore ensured continued safety trainings, both virtually and insmall groups to respect health measures. Other trainings, including
on leadership and development, were delayed while adjusting theoffering to the digital delivery in a virtual context but did continue inthe second half of 2020.

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8 CLIMATE AND ENVIRONMENTPOTENTIAL IMPACT

Climate and environment impacts are mostly related to our supply of
primary raw materials or to our suppliers’ extraction of these primary
raw materials. Easy-to-mine deposits are becoming increasingly
scarce and ore bodies poorer. Many specialty metals required for
new, environmentally-friendly technologies can only be obtained
as a by-product of other metals. Treating complex materials fromabove-ground sources, such as industrial residues and end-of-lifematerials, is increasingly important.
Climate change causes extreme natural events, chronic deviations inmean temperatures and precipitation patterns, and rising sea levels.
This could impact our sites or supply chain.
Increasingly stringent regulations on energy use and emissions can
induce higher operational costs.
Our license to operate is predicated on managing the impact of
our operations in the communities where we operate. Historicalindustrial activity requires active management and remediation.

CHANGE IN CONTEXT

Civil society and political discourse are increasingly demandingthat business takes an active role in mitigating climate change.
In the context of COVID-19, the attention on environmental andclimate-related performance of private sector and industry has
increased, as has attention around developing a “green recovery”.
The ongoing transition to a lower carbon economy continues
to present Umicore with opportunities to expand and develop
processes in ways that can mitigate or address climate change andenvironmental risks.

MEASURES TAKEN BY UMICORE

Umicore plays a key role in the transition to a low-carbon future as
our materials tackle global trends for clean air and e-mobility, andour closed loop business model tackles resource stewardship.
Our facility in Hoboken is the world’s largest and most complex
precious metals recycling operation, processing over 200 types ofraw material and recovering over 20 different metals. We ensurethat a high volume of our metals come from secondary sources –production scraps, residues and end-of-life materials. We can also
recycle customers’ residues and production scrap to help themmaximize their material efficiency and then transform the recoveredmaterials into new products. In total we recover 28 metals fromour closed loop activities and we continue to adapt our processes
to recycle new and more complex end-of-life products. Our highyield recycling process continues to be a driving force in resource
efficiency and contributing to the circular economy.

86

to customers, access to skilled workforce, excellent logistics,
infrastructure and green energy.
Umicore performs life cycle assessments on all products and services
on a rolling and ongoing basis to sharpen insight on environmental
performance, through the right choice of the chemistry, energy mix,
and raw materials, including recycled materials. For the new battery
production plant in Poland, Umicore maintains the commitment thatelectricity will be from renewable sources.
We ensure that our current activities keep to the most stringent
environmental standards for air and water and work every year to
improve our energy efficiency and environmental footprint despite
our growth and increased production. For more information, see
Environmental Statements(p. 188) .
Umicore manages its historical environmental legacy, ensuring
adequate financial provisions that are reviewed twice a year. For
more information, see notes E7(p. 195) and F29(p. 162).
In 2020 Umicore continued strategic preparation work on climate andenvironment-related impact.

Our global footprint and diverse site locations reduce our exposure
to physical risks. New sites have been chosen considering proximity

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87

Governance statements
88

G6 RELEVANT INFORMATION IN THE EVENT OF A TAKEOVER BID

91

G10 MARKET MANIPULATION AND INSIDER TRADING

93

G2 CORPORATE STRUCTURE

88

92

G11 COMPLIANCE WITH THE CG CODE 2020

93

G3 SHAREHOLDERS89

G7 CONFLICTS OF INTERESTS (ART. 7:115 through 7:117 BCCA
and ART. 523 – 524TER OLD COMPANIES CODE)

G12 REMUNERATION POLICY94

G4 SUPERVISORY BOARD

89

G8 STATUTORY AUDITOR

93

G13 REMUNERATION REPORT94

G5 MANAGEMENT BOARD

91

G9 CODE OF CONDUCT93G1CORPORATE GOVERNANCE FRAMEWORK

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Statements
G1 CORPORATE GOVERNANCE FRAMEWORK
During the financial year 2020, Umicore (also the “Company”) was subject to the Belgian Code on
Corporate Governance 2020 (the “CG Code 2020), which entered into force on 1 January 2020.
The English, Dutch and French versions of the CG Code 2020 can be found on the website of the Belgianwww.corporategovernancecommittee.be).
Corporate Governance Committee (Following the entry into force of the CG Code 2020, the Company’s supervisory board adopted a newcorporate governance charter (the “CG Charter”) on 30 July 2020. The CG Charter was further amended by
the supervisory board on 9 December 2020. It describes in detail the governance structure of the Company
and the policies and procedures of the Umicore group. The CG Charter is available on the Umicore website
https://www.umicore.com/storage/group/2020-07-30-cg-charter-en.pdf) or may be obtained on(request from Umicore’s Group Communications Department.
Umicore has articulated its mission, values and basic organizational philosophy in a document called“The Umicore Way”. This document spells out how Umicore views its relationship with its customers,
shareholders, employees and society. It is supplemented by detailed company codes and policies, themost significant of which is the Code of Conduct (see G9).
In terms of organizational philosophy, Umicore believes in decentralization and in entrusting a large
degree of autonomy to each of its business units. The business units in turn are accountable for theircontribution to the group’s value creation and for their adherence to group strategies, policies, standards
and sustainable development approach.
In this context, Umicore is convinced that a sound corporate governance structure constitutes a necessary
condition to ensure its long-term success. This implies an effective decision-making process based ona clear allocation of responsibilities. Such approach must ensure an optimal balance between a cultureof entrepreneurship at the level of the business units and effective steering and oversight processes.
The CG Charter deals in more detail with the responsibilities of the shareholders, the supervisory board,
the CEO, the management board and the specific role of the audit committee and of the nomination &remuneration committee. The present statements provide information on governance issues which relate
primarily to the financial year 2020.

G2 CORPORATE STRUCTURE
The Company’s corporate structure underwent an important change during 2020 following the resolutionsof the extraordinary shareholders’ meeting held on 30 April 2020, which resulted in a full alignment of the88

Company’s articles of association to the new Belgian Code of companies and associations (the “BCCA”)
and to the adoption of a genuine two-tier board structure.
Prior to the above extraordinary shareholders’ meeting of 30 April 2020, the board of directors (“raadvan bestuur”/“conseil d’administration”) was the ultimate decision-making corporate body of Umicore,
subject only to matters explicitly reserved to the shareholders’ meeting by the old Code of companies orthe articles of association.
Following the adoption of a two-tier board structure, as provided the BCCA, by the extraordinary
shareholders’ meeting held on 30 April 2020, the management board (“directieraad”/“conseil dedirection”) has now become competent for all matters not specifically reserved to the supervisory board(“raad van toezicht”/“conseil de surveillance”) or the shareholders’ meeting by the BCCA or Umicore’s
articles of association.
The supervisory board is responsible for the general policy and the strategy of Umicore, as well as for
all actions that the BCCA reserves specifically for the board of directors in a one-tier system. It appoints
and dismisses the CEO and the other members of the management board and it also supervises the
management board. The supervisory board is assisted in its role by an audit committee and a nomination& remuneration committee.
The day-to-day management of Umicore has been delegated to the CEO, who also chairs the
management board.
The management board, under the leadership of the CEO, is responsible for proposing the overall strategyof Umicore to the supervisory board and for Umicore’s operational management. It also approves thestrategies of the individual business units and monitors their implementation. The management board
is furthermore responsible for screening the various risks and opportunities that Umicore may encounterin the short, medium or longer term (p. 76) and for ensuring that adequate systems are in place toaddress these. The management board is responsible for defining and applying Umicore’s approach tosustainable development.
Umicore is organized in business groups which in turn comprise business units that share common
characteristics in terms of products, technologies and end-user markets. Some business units are further
subdivided into market-focused business lines. In order to provide a group-wide support structure,
Umicore has regional management platforms in China, North America, Japan and South America. Its
corporate headquarters are based in Belgium (Brussels). This centre provides a number of corporate
and support functions in the areas of legal, finance, human resources, tax, internal audit, public andinvestor relations.

Umicore Integrated Annual Report 2020

Statements

89

3.1 ISSUED SHARES – CAPITAL STRUCTURE
On 31 December 2020 there were 246,400,000 Umicore shares in issue.

appointed Mr Mario Armero as new director1 for a period of 3 years. Furthermore, the mandates of
Mrs Ines Kolmsee and Mrs Liat Ben-Zur as independent directors2 was renewed for 3 years. The annual
shareholders’ meeting also approved the remuneration of the board of directors3 for 2020. Details of thefees paid to the members of the board of directors4 in 2020 are disclosed in the remuneration report.

The identity of shareholders having declared a participation of 3% or more as of 31 December 2020 can befound in the chapter “parent company separate summarized financial statements” (Financial statements)

The special shareholders’ meeting approved a change of control clause in accordance with the article 556
of the old Belgian Companies Code.

Also on 31 December 2020, Umicore owned 5,733,685 of its own shares representing 2.33% of its capital.
Information concerning the shareholders’ authorization for Umicore to buy back its own shares and thestatus of such buy-backs can be consulted in the CG Charter and on Umicore’s website.

Finally, the extraordinary shareholders’ meeting approved various amendments to the articles ofassociation in view of fully aligning it with the provisions of the BCCA and introducing a genuine two-tierboard structure. As a result, all members of the former board of directors, save the CEO, became membersof the supervisory board. The members of the former executive committee, including the CEO, became
members of the management board following resolutions adopted by the supervisory board on thesame date.

G3 SHAREHOLDERS

During the year, 1,024,435 own shares were used in the context of the exercise of employee stock options
and 66,430 shares were used for share grants, of which 10,000 to the members of the supervisory board,
52,000 to the management board members and 4,430 following a partial conversion into shares of thebonus of a member of the management board.
3.2 DIVIDEND POLICY AND PAYMENT
Umicore’s policy is to pay a stable or gradually increasing dividend, save for exceptional circumstances.
In 2020, Umicore paid a gross dividend of € 0.375 per share relating to the financial year 2019. This wasa decrease by € 0.375 compared to the gross dividend paid in 2019 in respect of the financial year 2018.
In July 2020 the supervisory board, in line with the Umicore dividend policy, decided to pay a gross interim
dividend of € 0.25 per share, which was paid on 25 August 2020.

1

2

3

4

G4 SUPERVISORY BOARD
4.1 INTRODUCTION
As above mentioned, the extraordinary shareholders’ meeting held on 30 April 2020 has adopted a
two-tier board structure, as provided under the BCCA. As a result, the Company’s board of directors was
replaced by a supervisory board as of the same date. All members of the former board of directors, savethe CEO, were appointed members of the supervisory board, also as of the same date.
Any reference in this chapter to the supervisory board should be read as a reference to the former boardof directors, insofar it relates to events having taken place before the above extraordinary shareholders’meeting of 30 April 2020.

3.3 SHAREHOLDERS’ MEETINGS 2020
The (annual, special and extraordinary) shareholders’ meetings were held on 30 April 2020 and were
subject to amended, restricted participation modalities, in line with the Belgian Royal Decree nr. 4 of
9 April 2020 containing various provisions on co-ownership as well as on company and associations law inthe framework of the fight against the Covid-19 pandemic. As a result, the shareholders were not allowed
to physically participate to these meetings but only by means of postal or proxy voting. The shareholders’meeting could be viewed via a live (or differed) webcast.

4.2 COMPOSITION
The supervisory board, whose members are appointed by the shareholders’ meeting resolving by asimple majority of votes without any attendance requirement, is composed of at least 6 members. The
members’ term of office may not exceed 4 years. In practice, supervisory board members are elected fora (renewable) period of 3 years. A member of the supervisory board cannot at the same time be memberof the management board.

On the occasion of the annual shareholders’ meeting, the shareholders approved the resolutions
regarding the annual accounts, the appropriation of the results and the discharges to the directors and to
the statutory auditor regarding their respective 2019 mandates. At the same meeting, the shareholders

Members of the supervisory board can be dismissed at any time following a resolution of a shareholders’meeting, deciding by a simple majority of the votes cast. There are no attendance requirements for thedismissal of supervisory board members. The BCCA provides for the possibility for the supervisory board

1
2
3
4

Member of the supervisory board after the extraordinary shareholders’ meeting held on 30 April 2020.
Independent members of the supervisory board after the extraordinary shareholders’ meeting held on 30 April 2020.
Supervisory board after the extraordinary shareholders’ meeting of 30 April 2020.
Members of the supervisory board after the extraordinary shareholders’ meeting of 30 April 2020.

Umicore Integrated Annual Report 2020

Statements
to appoint members of the supervisory board in the event of a vacancy. The next general meeting must
decide on the definitive appointment of the above member of the supervisory board. The new member
completes the term of office of his or her predecessor.
On 31 December 2020, the supervisory board was composed of 9 members. On the same date, 6
supervisory board members were independent in accordance with the criteria laid down in article 3.5 of
the CG Code 2020.
In terms of gender and cultural diversity, the supervisory board counted 3 women and 6 different
nationalities among its 9 members on 31 December 2020. Diversity also arises from the supervisoryboard members’ educational backgrounds which include engineering, law, economics, finance andapplied languages. The supervisory board’s cumulative industry experience is broad, covering automotive,
electronics, chemicals, metals, energy, finance and scientific/educational sectors. It also includes people
experienced in the public and private sector and members with experience in the different regions inwhich Umicore is active. Collectively, the supervisory board possesses strong experience of managing
industrial operations and counts 8 active or former CEOs in its ranks. The supervisory board also hascollective experience in disciplines that are specifically relevant to Umicore’s non-financial Horizon 2020
goals such as health and safety, talent attraction and retention and supply chain sustainability.
The composition of the supervisory board underwent the following changes in 2020:● Mr Mario Armero was appointed director (and, hence, supervisory board member) for a period of three
years at the annual shareholders’ meeting held on 30 April 2020;● Mr Gérard Lamarche resigned as director with effective date 30 April 2020;● Following the incompatibility between the mandates of management board member and supervisoryboard member, Mr Marc Grynberg, who was a member of the old board of directors until the adoptionof the new two-tier board structure by the extraordinary shareholders’ meeting, was not appointed
supervisory board member by the same extraordinary shareholders’ meeting.
Furthermore, the mandates of Mrs Ines Kolmsee and Mrs Liat Ben-Zur as independent directors (andhence, independent supervisory board members) were renewed for three years on 30 April 2020.
Finally, Mr Koenraad Debackere was appointed vice-chairperson of the supervisory board on 30 July 2020.
4.3 MEETINGS AND TOPICS
The supervisory board held eleven regular meetings in 2020. Ten of these meetings were held by meansof a videoconference due to the covid-19 pandemic. On two occasions, the supervisory board also took
decisions by unanimous written consent.

90

The matters reviewed by the supervisory board in 2020 included the following:● financial performance of the Umicore group;● approval of the annual and half-year financial statements;● adoption of the statutory and consolidated annual accounts and approval of the statutory andconsolidated annual reports (including the remuneration report and the remuneration policy);● approval of the agenda of an ordinary, a special and an extraordinary shareholders’ meeting andcalling of these meetings;● Covid-19 updates;● investment and divestment projects;● issuance of convertible bonds (and approval of ancillary documents and reports in that context);● audit committee reports;● strategic opportunities and operational challenges;● business and technology reviews, and market updates;● corporate governance (including the adoption of the new CG Charter);● metal price sensitivity and net working capital evolution;● mergers & acquisitions projects and updates;● annual performance review of the CEO and the other members of the management board;● performance review of the supervisory board and its committees;● succession planning at the level of the supervisory board and the management board;● interim dividend distribution.
4.4 PERFORMANCE REVIEW OF THE SUPERVISORY BOARD AND ITS COMMITTEES
The supervisory board undertakes at least every three years an evaluation of its own performance andits interaction with the CEO and the management board, as well as its size, composition, functioning andthat of the board committees.
The last performance review took place in 2020 and included a preliminary feedback round and an
in-depth discussion during a supervisory board meeting held in July 2020.
4.5 AUDIT COMMITTEE
The audit committee’s composition and the qualifications of its members are fully in line with therequirements of article 7:99 of the BCCA and of the CG Code 2020.
The audit committee is composed of three members of the supervisory board, two of them being
independent. It is chaired by Mrs Ines Kolmsee.
The composition of the audit committee remained unchanged in 2020.

Umicore Integrated Annual Report 2020

Statements
All the members of the audit committee have extensive experience in accounting and audit matters as
demonstrated by their curriculum.
The committee met four times in 2020, including three videoconference calls. Apart from the review ofthe 2019 full year and the 2020 half year accounts, the audit committee reviewed reports and discussed
matters related to internal audit, financial reporting, internal controls, cyber security, group auditor
succession and other audit-related matters. The 2021 internal audit plan was validated. The committee
met with the group’s auditor and reviewed and approved provided non-audit services. Members of theaudit committee also discussed ad hoc matters with senior management.

91

Any references to the management board in this chapter should be read as references to the former
executive committee, insofar they relate to events having taken place before the above extraordinary
shareholders’ meeting of 30 April 2020.
5.2 COMPOSITION
The management board is composed of at least four members. It is chaired by the CEO. All members of the
management board, including the CEO, are appointed by the supervisory board upon recommendation of
the nomination & remuneration committee.
The composition of the management board remained unchanged in 2020.

4.6 NOMINATION & REMUNERATION COMMITTEE
The composition of the nomination and remuneration committee’s composition is fully in line with therequirements of article 7:100 of the BCCA and of the CG Code 2020.
On 31 December 2020, the nomination & remuneration committee was composed of five members, allmembers of the supervisory board, three of them being independent. The committee is chaired by thechairman of the supervisory board.
The composition of the nomination & remuneration committee underwent the following changes in 2020:● Mr Mario Armero was appointed member of the committee with effective date 9 December 2020;● Mr Koenraad Debackere was also appointed member of the committee with effective dated
9 December 2020.
Five nomination & remuneration committee meetings were held in 2020, including three videoconference
calls. During the same period the committee discussed the remuneration policy for the supervisory board
members, the supervisory board committee members and management board members, and the rulesof the stock grant and option plans offered in 2020. The committee also discussed the succession planningat the level of the supervisory board and the management board.

G5 MANAGEMENT BOARD
5.1 INTRODUCTION
Following the adoption of a two-tier board structure, as foreseen in the BCCA, by the extraordinary
shareholders’ meeting held on 30 April 2020, the Company’s executive committee was replaced bya management board as of the same date. All seven members of the former executive committee,
including the CEO, were appointed members of the management board as of the same date.

On 31 December 2020 the management board was composed of 7 members, including the CEO.
5.3 PERFORMANCE REVIEWThe management board regularly reviews and assesses its own performance. The valuation is also
discussed at the nomination and remuneration committee and presented to the supervisory board.
The last performance reviews of the CEO and the other members of the management board took placeon 6 February 2020.

G6 RELEVANT INFORMATION IN THE EVENT OF A TAKEOVER BID
6.1 RESTRICTIONS ON TRANSFERRING SECURITIES
Umicore’s articles of association do not impose any restriction on the transfer of shares or other securities.
The Company is furthermore not aware of any restrictions imposed by law except in the context of themarket abuse legislation and of the lock-up requirements imposed on some share grants by the BCCA.
The options on Umicore shares as granted to the CEO, to the members of the management board
and to designated Umicore employees in execution of various Umicore incentive programs may not betransferred inter vivos.
6.2 HOLDERS OF SECURITIES WITH SPECIAL CONTROL RIGHTS
There are no such holders.
6.3 VOTING RIGHT RESTRICTIONS
Umicore’s articles of association do not contain any restriction on the exercise of voting rights byshareholders, providing the shareholders concerned are admitted to the shareholders’ meeting and theirrights are not suspended. The admission rules to shareholders’ meetings are articulated in article 20 ofUmicore Integrated Annual Report 2020

Statements
the articles of association. Pursuant to article 7 of the articles of association, if a share is the subject ofconcurrent rights, the rights attached to these shares are suspended until one person is designated asowner vis-à-vis the Company.
To the supervisory board’s best knowledge, none of the voting rights attached to the shares issued by
the Company were suspended by law on 31 December 2020, save for the 5,733,685 shares held by theCompany itself on that date (article 7:217 §1 of the BCCA).
6.4 EMPLOYEE STOCK PLANS WHERE THE CONTROL RIGHTS ARE NOT EXERCISED DIRECTLY BY THE
EMPLOYEES
Umicore has not issued any such employee stock plans.
6.5 SHAREHOLDERS’ AGREEMENTS
To the supervisory board’s best knowledge, there are no shareholders’ agreements which may result in
restrictions on the transfer of securities and/or the exercise of voting rights.
6.6 AMENDMENTS TO THE ARTICLES OF ASSOCIATION
Save for capital increases decided by the supervisory board within the limits of the authorized capital,
only an extraordinary shareholders’ meeting is authorized to amend Umicore’s articles of association.
A shareholders’ meeting may only deliberate on amendments to the articles of association – including
capital increases or reductions, mergers, de-mergers and a winding-up – if at least 50% of the subscribed
capital is represented. If the above attendance quorum is not reached, a new extraordinary shareholders’meeting must be convened, which will deliberate regardless of the portion of the capital represented.
As a general rule, amendments to the articles of association are only adopted if approved by 75% of thevotes cast. The BCCA provides for more stringent majority requirements in specific instances, such as themodification of the corporate object or the company form.
The Company’s articles of association were amended once in 2020, following the resolutions of theextraordinary shareholders’ meeting held on 30 April 2020 in order to bring them in line with theprovisions of the BCCA (including the adoption of a two-tier board structure).
6.7 AUTHORISED CAPITAL – BUY-BACK OF SHARESThe Company’s capital may be increased following a decision of the supervisory board within the limitsof the so-called “authorized capital”. The authorization must be granted by an extraordinary shareholders’meeting; it is limited in time and amount and is subject to specific justification and purpose requirements.
The extraordinary shareholders’ meeting held on 26 April 2018 (resolutions published on 29 May 2018)
renewed the authorization granted to the supervisory board5 to increase the Company’s share capital. The
1

1

92

supervisory board is authorized to increase the capital in one or more times by a maximum amount of€ 55,000,000. The authorization will lapse on 28 May 2023 but it can be renewed.
Up until 31 December 2020, the supervisory board has once made use of its powers under the above
authorized capital, i.e. when it resolved on 15 June 2020 to issue senior unsecured convertible bonds due
2025 for an aggregate principal amount of € 500,000,000. These convertible bonds carry a zero-coupon
and their initial conversion price amounts to € 55.32 per share. In connection with the issuance of theseconvertible bonds, the supervisory board resolved to disapply the preference subscription right of existing
shareholders in accordance with articles 7:191 juncto 7:198 of the BCCA. The terms of the convertible bonds
provide that the bonds can be converted in to new shares and/or existing shares; in case of new shares,
they will be issued in the framework of the authorized capital. The above terms also provide for specificcases of early redemption at the option of the Company and/or the bondholders.
The exact amount to be allocated on the above authorized capital limit of € 55,000,000 will be
determined, as the case may be, upon (full or partial) conversion of the convertible bonds into
new shares.
Following a resolution of the extraordinary shareholders’ meeting held on 26 April 2018, the Company isauthorized to acquire own shares on a regulated market within a limit of 10% of the subscribed capital,
at a price per share comprised between € 4 and € 100 and until 31 May 2022 (included). The sameauthorization was also granted to the Company’s direct subsidiaries. The Company acquired 1,200,000
own shares in 2020 in implementation of the above authorization.
6.8 AGREEMENTS BETWEEN THE COMPANY AND ITS DIRECTORS OR EMPLOYEES PROVIDING FORCOMPENSATION IF THEY RESIGN, OR ARE MADE REDUNDANT WITHOUT VALID REASON, OR IF THEIREMPLOYMENT CEASES BECAUSE OF A TAKE-OVER-BID
All the senior vice-presidents of the Umicore group are entitled to a compensation equivalent to 36
months base salary in the event of a dismissal within 12 months after a change of control over theCompany. As far as the members of the management board are concerned, reference is made to the
remuneration report (Remnueration Report).

G7 CONFLICTS OF INTERESTS (ART. 7:115 THROUGH 7:117 BCCA AND ART.
523 – 524TER OLD COMPANIES CODE)
On 6 February 2020, prior to the board of directors discussing or taking any decision, Marc Grynberg,
who at that time was still a member of the board of directors, declared that he had a direct conflicting
interest of a proprietary nature in the implementation of the decisions taken by the board relating to
his performance assessment and to his remuneration (including the grant of shares and options). In

The authorization was originally granted to the former board of directors, but this authorization was automatically vested in the supervisory board following the adoption of the two-tier board structure by the extraordinary shareholders’ meeting held on 30 April 2020.

Umicore Integrated Annual Report 2020

Statements

93

accordance with the then applicable article 523 of the old Belgian Companies Code, Marc Grynberg did
not take part in the board’s discussions concerning this decision and he did not take part in the voting.

G8 STATUTORY AUDITOR

The above decisions had/will have the following financial consequences:

At the annual shareholders’ meeting held on 30 April 2020, the statutory auditor’s mandate ofPricewaterhouseCoopers Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL was renewed for a period of 3
years. The statutory auditor is represented by Mr Kurt Cappoen for the exercise of this mandate.

A FIXED AND VARIABLE REMUNERATIONThe CEO received a fixed gross remuneration of € 720,000 in 2020. Also in 2020, he received a grossvariable cash remuneration totalling € 87,500 as non-deferred part of his variable cash remuneration for
the reference year 2019.

The Umicore policy detailing the independence criteria for the statutory auditor may be requested
from Umicore.

Furthermore he received in 2020 a gross amount of € 256,500 as deferred part of his variable
remuneration for the reference year 2017 based on (1) the 3-year average Umicore group profitability
criterion, i.e. the average return on capital employed (ROCE) for the reference years 2017, 2018 and 2019(i.e. 14.4% giving rise to a percentage pay-out of 69%) and (2) the 3-year average EBIT growth for thesame reference years 2017, 2018 and 2019 multiplied by 2 (i.e. 13.2% giving rise to a percentage pay-outof 26%).
The ROCE range is set between a minimum of 7.5% (= pay-out of 0%) and a maximum of 17.5% (=pay-out of 100% of the target). When the achieved ROCE percentage falls between the minimum and the
maximum, the pay-out will be pro-rated. The impact of the EBIT growth is calculated by multiplying the
average percentage of the EBIT growth for the reference years by 2. The Group EBIT growth incentive only
applies for a minimum compounded average adjusted EBIT growth of 10%.

G9 CODE OF CONDUCT
Umicore operates a Code of Conduct for all its employees, representatives and supervisory or
management board members. This Code of Conduct is fundamental to the task of creating andmaintaining a relation of trust and professionalism with its main stakeholders namely its employees,commercial partners, shareholders, government authorities and the public.
The main purpose of Umicore’s Code of Conduct is to ensure that all persons acting on behalf of Umicore
carry out their activities in an ethical way and in accordance with the laws and regulations and withthe standards Umicore sets through its present and future policies, guidelines and rules. The Codeof Conduct contains a specific section on complaints and expressions of concern by employees and“whistle-blower” protection.
The Code of Conduct is published in Appendix 6 to the CG Charter.

B GRANT OF SHARES AND STOCK OPTIONS
The financial consequences for Umicore consist of: either 1) as long as Umicore decides to keep the shares
it holds today: the financing and opportunity cost of maintaining such shares in its portfolio until thedelivery date of the shares granted or the option’s exercise date, or 2) if and to the extent that Umicore
sells such shares at a later date: the difference on the date of exercise of the options between the exercise
price and the market value of the shares that Umicore would have to buy on that date.
During 2020, no specific transactions or contractual commitments occurred between a member of thesupervisory board or of the management board6 on the one hand, and Umicore or one of its affiliatedcompanies on the other hand.
1

1

G10 MARKET MANIPULATION AND INSIDER TRADING
Umicore’s policy related to market abuse including insider trading is spelled out in the Umicore Dealing
Code, which can be found under Appendix 7 to the CG Charter.

G11 COMPLIANCE WITH THE CG CODE 2020
During the financial year 2020, Umicore’s corporate governance systems and procedures were in line with
the CG Code 2020, with one exception related to the grant of stock options to the CEO. As explained in
the remuneration policy, which was approved by the shareholders’ meeting held on 30 April 2020, thestock options granted to the CEO vest immediately upon grant, as contractually agreed. This deviatesfrom provision 7.11 of the CG Code 2020. However, even if they vest immediately, the options can only be
exercised after three years, which is in line with the above provision 7.11.

Or a member of the board of directors or the executive committee until the extraordinary shareholders’ meeting of 30 April 2020.

Umicore Integrated Annual Report 2020

Statements
G12 REMUNERATION POLICY
On 6 February 2020 the nomination and remuneration committee presented the remuneration policy(the “Policy”) to the board of directors for discussion and approval. This Policy outlines the remuneration
principles for the members of Umicore’s supervisory board and management board1 and is effective as of
1 January 2020. The Policy was approved at Umicore’s annual shareholders’ meeting on 30 April 2020 with
82.07% of the votes cast (disregarding the abstention votes, as provided under Belgian company law).
The Policy is available on Umicore’s website:

94

2020 Remuneration overview members of the supervisory board
All components of the remuneration of the members of the supervisory board for the reported year aredetailed in the table below.

1

https://www.umicore.com/en/investors/governance/documents/remuneration-policy/

G13 REMUNERATION REPORT2REMUNERATION FOR THE MEMBERS OF THE SUPERVISORY BOARD

The remuneration of the members of the supervisory board is in accordance with the Policy andunchanged versus the previous year, with exception of one small change in relation to the additional
attendance fee for members of the supervisory board residing outside Belgium. This additional
attendance fee also applies as of 2020 for the committee meetings, attended in person and not
combined with a supervisory board meeting.
Supervisory board● Chairman: annual ﬁxed fee: € 60,000 + € 5,000 per meeting attended + 2,000 Umicore shares +company car● Member: annual ﬁxed fee: € 27,000 + € 2,500 per meeting attended + € 1,000 per meeting attended
in person (for foreign-based members) + 1,000 Umicore shares
Audit committee● Chairman: annual ﬁxed fee: € 10,000 + € 5,000 per meeting attended● Member: annual ﬁxed fee: € 5,000 + € 3,000 per meeting attended + € 1,000 per meeting attended
in person (for foreign-based members)
Nomination and remuneration committee● Chairman: € 5,000 per meeting attended● Member: € 3,000 per meeting attended + € 1,000 per meeting attended in person (for foreign­
based members)

1
2

Respectively board of directors and executive committee for the period between 1 January 2020 and 30 April 2020.
Any references in this remuneration report to the supervisory board or the management board of Umicore should be read as references to respectively the board of directors and the executive committee of Umicore when relating to events or circumstances having
occurred prior to the extraordinary shareholders’ meeting of 30 April 2020, as referred to in the above corporate governance review.

Umicore Integrated Annual Report 2020

Statements
13.1 REMUNERATION OVERVIEW MEMBERS OF THE SUPERVISORY BOARDin (€)GARRETT M.

in (€)
Name
Mandate

Start
date

End
date

Fixed
Fee

Shares1Attendance
Fee

Number ofmeetings
attended
Online/In
person

Other
(Car)

217,385
19-11-2008

60,00074,660Chairman of the
19-11-2008
nomination &remuneration committee

55,00025,00010 / 1

18,074

24,97417,5003,000

27,00037,33012,500Member of thesupervisory board

5/0
99,33026-4-2016

27,00037,330Member of the
26-4-2018
nomination &remuneration committee

20,000

7/1

15,000

4/1

DEBACKERE K.
26-4-2018

Member of theaudit Committee

26-4-2018

Member of the
9-12-2020
nomination &remuneration committee

27,0005,000

37,33025,000

9/1

12,000

3/1

3,000

1/0

37,33026,000

9/1

16,000

4/1
120,330

Member of thesupervisory board

26-4-2011

Chairman of theaudit Committee

28-4-2015

27,00037,33010,00026,000

9/1

20,000

3/1

Member of thesupervisory board

32,28225-4-2017 30-4-2020

8,926

12,356

11,0003/1
87,83028-5-2015

27,00037,33023,5008/1
108,830

Member of thesupervisory board

25-4-2019

Member of theaudit Committee

25-4-2019

27,0005,000

37,33027,50010 / 1

12,000

3/1

1 The share grant relates to the services rendered in the reported year. The shares were granted on 15 May 2020 and were valued at the fair market
value of the share at € 37.33, equivalent to the closing share price on 14 May 2020 (share value is set at the lowest of the closing share price on
the day before the delivery date and the average closing price of the last 30 calendar days before delivery date).

REMUNERATION FOR THE CEO AND THE OTHER MEMBERS OF THE MANAGEMENT BOARD
109,330

Member of thesupervisory board

27,000RAETS L.

1/0

CHOMBAR F.

25-4-2017

Member of thesupervisory board

76,83025-4-2017

Member of thenomination &remuneration committee

MEURICE E.

7/0

BEN-ZUR L.

28-4-2015

LAMARCHE G.
63,54830-4-2020

Member of the
9-12-2020
nomination &remuneration committee
Member of thesupervisory board

2,725

4/1

ARMERO M.
Member of thesupervisory board

Total

106,330

Member of thesupervisory board

KOLMSEE I.

LEYSEN T.
Chairman of thesupervisory board

95

The remuneration of the CEO and the other members of the management board was reviewed by
the supervisory board on 6 February 2020, on the basis of recommendations from the nomination andremuneration committee following a comparison survey with BEL20 and European peer companies.
The remuneration for the CEO and other members of the management board included in 2020 thefollowing components: fixed remuneration, variable compensation, share-based compensation, pension
plans and other benefits.
Remuneration CEO
On proposal of the nomination and remuneration committee, the supervisory board of 6 February 2020
decided to set the fixed remuneration of the CEO at € 720,000 as of 1 January 2020 and to maintain theannual variable cash remuneration potential of € 700,000 for the reported year. 140,000 stock options
were granted for 2020 as part of the annual Umicore Incentive Stock Option Plan.

Umicore Integrated Annual Report 2020

Statements

96

In addition, the board of 10 February 2021 decided to grant 10,000 Umicore shares for services rendered in
the reported year. These shares are subject to a 3 year lock-up and are not subject to forfeiture conditions.
All components of the remuneration earned by the CEO for the reported year are detailed in thetable below.
Remuneration other members of the management board
On proposal of the nomination and remuneration committee, the supervisory board of 6 February 2020
decided to set the fixed remuneration of each other member of the management board at € 440,000
as of 1 January 2020 and to maintain the annual variable cash remuneration potential of € 380,000 for
the reported year. 30,000 stock options per person were granted for 2020 as part of the annual Umicore
Incentive Stock Option Plan. Mr. Goffaux received 10,000 additional stock options following his foreign
assignment in South Korea.
In addition, the supervisory board of 10 February 2021 decided to grant 7,000 Umicore shares per person
for services rendered in the reported year. These shares are subject to a 3 year lock-up and are notsubject to forfeiture condition All components of the remuneration earned by the other members of the
management board for the reported year are detailed in the table below.

Umicore Integrated Annual Report 2020

Statements

97

13.2 REMUNERATION OVERVIEW MEMBERS OF THE MANAGEMENT BOARDin (€)
Name
Position
Grynberg M.

MandateStart dateEnd date

Fixed
Compensation(1)1

Undeferred
Variable 50%(2)2Deferred
Variable 50%(3)3

SharesStock
Options(5)5(4)4Pension
Plans
(6)6

Other

Total

(7)7

Ratio
fixed
(8)8

Ratio
variable(9)9

19/11/2008

720,000

315,000

159,300

470,800

904,400

214,677

54,332

2,838,509

83%

17%

01/11/2012

440,000

190,000

88,500329,560

193,800

128,089

40,4471,410,396

80%

20%

01/07/2010

440,000

95,00088,500334,273

258,400

128,196

162,352

1,506,721

88%

12%

01/02/2019

440,000

190,000

0329,627

193,800

91,872

23,306

1,268,605

85%

15%

01/07/2015

440,000

190,000

88,500329,560

193,800

131,857

16,5171,390,234

80%

20%

01/11/2012

440,000

190,000

88,500329,560

193,800

132,421

23,823

1,398,104

80%

20%

01/10/2018

440,000

190,000

22,125329,560

193,800

91,872

21,922

1,289,279

84%

16%

Reymondet P.

01/08/2003--

88,500----88,500

0%

100%

EVP

31/01/2019

Van Sande M.

01/09/1998--

22,125----

22,125

0%

100%

EVP

31/03/2018

CEO
Csoma S.
EVP
Goffaux D.
EVP
Kiessling R.
EVP
Nolens G.
EVP
Platteeuw F.
CFO
Steegen A.
EVP

1 The fixed compensation includes the fixed remunerations from Umicore entities.
2 The undeferred variable has been determined in accordance with the Policy and relates to the reported year 2020. The pay-out was done in 2021 in cash.
3 The deferred variable relates to the reference year 2018 and takes into account, over the years 2018-2019-2020, an average ROCE of 13.4%, resulting in a pay-out of 59% of the 2018 deferred target, and a compounded average EBIT growth% of 9.4%, which is lower than the 10% threshold and therefore
not resulting in an additional variable payment. The pay-out was done in 2021 in cash.
4 The share grant relates to the services rendered in the reported year 2020. The shares were granted on 11 February 2021 and were valued at the fair market value of the share at € 47.08, equivalent to the lowest of the closing share price on the day before the delivery date and the average closing
price of the last 30 calendar days before delivery date. For German and Korean tax purposes, the shares were valued at respectively € 47.09 (lowest market quotation of the shares on the delivery date), € 48.00 (the closing share price on the delivery date).
5 The stock option grant relates to the services rendered in the reported year 2020. The stock options were granted on 10 February 2020 and were valued at a notional value of € 6.46 per option according to the Black & Scholes formula.
6 Includes DC and DB contributions (service cost).
7 Includes the representation allowance, benefit in kind company car, insurance benefits and additional benefits for Mr. Goffaux D. following his foreign assignment in South Korea (housing, mobility premium, medical insurance).
8 (1)+(4)+(5)+(6)+(7)/Total remuneration
9 (2)+(3)/Total remuneration

Umicore Integrated Annual Report 2020

Statements
COMPARITIVE INFORMATION ON THE CHANGE OF REMUNERATION – PAY RATIO

Below table provides an overview on the annual change of remuneration for the CEO, the othermembers of the management board (in aggregate), the mandates within the supervisory board and thecommittees, the average employee remuneration on a full-time equivalent basis and the performanceof the Company. Incomplete years of remuneration due to a start or end of the mandate in the course of
the reference year, have been adjusted to an annual base. The number of shares in the table represents
for all years the number of shares taken into account the share split of 16 October 2017.
The average employee remuneration relates to Umicore (Belgium), in accordance with applicablelegal provisions.
13.3 COMPARATIVE TABLE ON THE CHANGE OF REMUNERATION AND COMPANY PERFORMANCE OVER
THE LAST FIVE REPORTED FINANCIAL YEARS
2016
vs
2015

Annual Change
Remuneration
management board

CEO

Members of the
management board(excl. CEO)REMUNERATIONSUPERVISORY BOARD
Chairmansupervisory board

Chairmanaudit committee

2017
vs
2016

2018
vs
2017

2019
vs
2018

2020
vs
2019

Comments

Annual Change
Chairmannomination &remunerationcommittee
Membersupervisory board

Memberaudit committee
Membernomination &remunerationcommittee

2016
vs
2015

2017
vs
2016

2018
vs
2017

2019
vs
2018

2020
vs
2019

Fixed

-

-

-

-

-

Attendancefee/meeting

0.0%

0.0%

0.0%

0.0%

0.0%

Number of shares

-

-

-

-

-

Fixed

0.0%

35.0%

0.0%

0.0%

0.0%

Attendancefee/meeting

0.0%

0.0%

0.0%

0.0%

0.0%

Number of shares

0.0%

0.0%

0.0%

0.0%

0.0%

Fixed

0.0%

0.0%

0.0%

0.0%

0.0%

Attendancefee/meeting

0.0%

0.0%

0.0%

0.0%

0.0%

Number of shares

-

-

-

-

-

Fixed

-

-

-

-

-

Attendancefee/meeting

0.0%

0.0%

0.0%

0.0%

0.0%

Number of shares

-

-

-

-

-

3.6%

3.7%

2.7%

98
Comments

AVERAGE EMPLOYEE REMUNERATION ON A FULL TIME EQUIVALENT BASIS

Type of remuneration% change versus
previous year

2.5%

5.1%

Fixed

0.0%

3.0%

2.9%

0.0%

2.9%

Variable

2.8%

27.0%

-24.8%

-5.6%

37.9%

Number of shares

0.0%

0.0%

0.0%

-3.8%

0.0%

COMPANY'SPERFORMANCE

2015

2016

2017

2018

2019

2020

13.7%

14.6%

15.1%

15.4%

12.6%

12.1%

330

Number of options

0.0%

0.0%

0.0%

-6.7%

0.0%

ROCE

Pension + other-42.8%

4.8%

1.1%

8.2%

13.0%

EBIT M€

351

410

514

509

536

Fixed

0.1%

2.5%

3.3%

0.4%

4.5%

Variable

7.0%

31.1%

-28.0%

18.3%

10.6%

% ROCE change versus
previous year

6.6%

3.4%

2.0%

-18.2%-4.0%% EBIT change versus
previous year

6.4%

16.8%

25.4%

-1.0%

5.4%

Number of shares

0.0%

0.0%

0.0%

-5.4%

0.0%

Number of options

0.0%

0.0%

0.0%

-14.3%

5.6%(1)1

Pension + other

-2.1%

-7.4%

-2.3%

1.9%

13.8%

(2)2

Type
of remuneration
Fixed

0.0%

0.0%

50.0%

0.0%

0.0%

Attendancefee/meeting

0.0%

0.0%

0.0%

0.0%

0.0%

Number of shares

0.0%

0.0%

0.0%

0.0%

0.0%

Fixed

0.0%

0.0%

0.0%

0.0%

0.0%

Attendancefee/meeting

0.0%

0.0%

0.0%

0.0%

0.0%

Number of shares

-

-

-

-

-

1 The increase versus 2019 relates to the additional stock options granted to Mr. Goffaux D. following his foreign assignment in South Korea.
2 The increase versus 2019 relates to the foreign assignment benefits provided to Mr. Goffaux D. for the entire reported year (mobility premium,housing, medical insurance).

The pay ratio 2020 between the highest and lowest pay level at Umicore (Belgium) was equal to 62.
SHARE AND SHARE OPTION PLANS AND TRANSACTIONS 2020
Management board share option transactions 2020
The below table provides an overview on the number of stock options granted, exercised and expired in
the course of the reported year, as well as the main provisions of the outstanding stock option plans.

Umicore Integrated Annual Report 2020

Statements99€ 43.75. The shares are subject to a 3 year lock-up until 9 February 2023 included, and are not subject toforfeiture conditions.

13.4 MANAGEMENT BOARD SHARE OPTION TRANSACTIONSTransactions in the reported year 2020
Name
Position
Grynberg M.

Options
GrantedISOP 2020

Options
Exercised

140,000

CEO
Csoma S.

Options
ExpiredISOP 2014

150,000

ISOP 2015

75,0000

ISOP 2020

30,0000

ISOP 2020

40,000ISOP 2015

7,500

0

ISOP 2020

30,000ISOP 2015

9,000

0

ISOP 2016

9,000

ISOP 2020

30,000ISOP 2020

30,000ISOP 2020

30,000

EVP
Goffaux D.
EVP
Kiessling R.
EVP
Nolens G.

CFO
Steegen A.

ISOP 2015

15,000ISOP 2016

5,000

0
0

EVP
MAIN PROVISIONS OF THE OUTSTANDING STOCK OPTION PLANS
Grant
Date

Exercise Price*1

Exercise window
Start End2020

10/02/2020

42.05010/02/2023 - 09/02/2027

2019

11/02/2019

34.08001/03/2022 - 10/02/2026

2018

09/02/2018

40.90001/03/2021 - 08/02/2025

2017

13/02/2017

25.50001/03/2020 - 12/02/2024

2016

05/02/2016

16.632

01/03/2019 - 04/02/2023

2015

09/02/2015

17.28901/03/2018 - 08/02/2022

2014

10/02/2014

16.14301/03/2017 - 09/02/2021

ISOP PLAN

13.5 MANAGEMENT BOARD SHARE GRANT
Name
Position0

EVP
Platteeuw F.

Mr. Goffaux D. decided to receive part of his variable cash compensation in Umicore shares, resulting in
4,430 additional shares, granted on 2 March 2020 and valued at the fair market value of the share at€ 37.77, equivalent to the closing share price on 28 February 2020 (share value is set at the lowest of
the closing share price on the day before the delivery date and the average closing price of the last 30
calendar days before delivery date). For Korean tax purposes the shares were valued at € 38.26. Theseshares are subject to a 2 year lock-up until 1 March 2022 included.

1 The exercise prices take into account the share split of 16 October 2017

Details of all options exercised and other share-related transactions can be found on the FSMA website.
Management board share grant 2020
The below table provides an overview of the number of shares granted in 2020 to the CEO and theother members of the management board for the services rendered in 2019. The shares were grantedon 10 February 2020 and were valued at the fair market value of the share at € 42.05, equivalent tothe closing share price on 7 February 2020 (share value is set at the lowest of the closing share priceon the day before the delivery date and the average closing price of the last 30 calendar days before
delivery date). For German and Korean tax purposes, the shares were valued at respectively € 41.41,

Grynberg M.

Nombre d'actions
reçues en 2020

Comment

10,000CEO
Csoma S.

7,000

EVP
Goffaux D.

11,430

EVP
Kiessling R.

6,417

EVP
Nolens G.

Pro rata the services
in 2019
as of 01/02/2019

7,000

EVP
Platteeuw F.

7,000

CFO
Reymondet P.

583

EVP
Steegen A.

Pro rata the services
in 2019
until 31/01/2019

7,000

EVP

As per the Policy, the CEO is required to build up, within 3 years from the date of appointment, and toretain minimum 30,000 Umicore shares throughout his tenure. This requirement is also applicable to theother members of the management board, in respect of a minimum of 15,000 shares.
On 31 December 2020 the CEO and the other members of the management board reached this minimum
shareholder requirement, with exception of Mr. Kiessling R. and Mrs. Steegen A. being both still in the 3
years’ time frame to build up the required minimum.

Umicore Integrated Annual Report 2020

Statements
The members of the management board collectively hold a total number of 1,144,097 shares on
31 December 2020.
Supervisory board share grant 2020
The below table provides an overview of the number of shares granted in 2020 to the members of thesupervisory board for the services rendered in 2020. The shares were granted on 15 May 2020 and werevalued at the fair market value of the share at € 37.77, equivalent to the closing share price on 14 May2020 (share value is set at the lowest of the closing share price on the day before the delivery date andthe average closing price of the last 30 calendar days before delivery date). The shares have to be held
until at least one year after the member leaves the supervisory board and until at least three years after
the delivery date.

100

The members of the supervisory board collectively hold a total number of 960,387 shares on
31 December 2020.

APPROVAL OF THE 2019 REMUNERATION REPORTThe 2019 remuneration report was approved by the shareholders’ meeting with a majority of 82.46% of
the votes cast (disregarding the abstention votes, as provided under Belgian company law).

CHANGES TO REMUNERATION SINCE THE END OF 2020
Remuneration for the members of the supervisory board
Based on the review of the overall compensation of the members of the supervisory board and of eachelement of the compensation, the nomination and remuneration committee concluded on 5 February
2021 that the compensation is appropriate.

13.6 SUPERVISORY BOARD SHARE GRANT
Name
Mandate in the supervisory board
Leysen T.

Number of shares
received in 2020

Comment

2,000

Chairman
Armero M.

669

Member
Ben-Zur L.

Pro rata the services
in 2020
as of 30/04/2020

1,000

Remuneration for the CEO
On 5 February 2021, the nomination and remuneration committee reviewed the remuneration of the CEO
based on a comparison survey with European peer companies and BEL20 index companies.
On proposal of the nomination and remuneration committee, the supervisory board of 10 February 2021
decided to maintain the annual fixed and the annual variable cash remuneration potential at the samelevel. 80,000 stock options were granted for 2021 as part of the annual Umicore Incentive Stock Option
Plan. These changes are in accordance with the Policy.

MemberChombar F.

Remuneration for the other members of the management board
On 5 February 2021, the nomination and remuneration committee reviewed the remuneration of the othermembers of the management board based on a comparison survey with European peer companies and
BEL20 index companies.

1,000

Member
Debackere K.

1,000

MemberGarrett M.

1,000

MemberKolmsee I.

1,000

MemberLamarche G.

331

MemberMeurice E.

Pro rata the services
in 2020
until 30/04/2020

On proposal of the nomination and remuneration committee, the supervisory board of 10 February 2021
decided to maintain the annual fixed remuneration at € 440,000 but to increase the annual variable cash
remuneration potential from € 380,000 to € 400,000 as of the year of performance 2021. The number ofstock options granted for 2021 as part of the annual Umicore Incentive Stock Option Plan, were maintainedat the same level. These changes are in accordance with the Policy.

1,000

MemberRaets L.

1,000

MemberUmicore Integrated Annual Report 2020

Statements

101

Economic statements
1

Group

102

3

Energy and Surface Technologies

105

2

Catalysis

104

4

Recycling

106

5

Distribution of economic benefits

107

Umicore Integrated Annual Report 2020

Statements

1 Group

DATA PER SHAREKEY FIGURES
2016

2017

2018

2019

2020

Total turnover

11,086

12,277

13,717

17,48520,710Total revenues(excluding metal)

2,667

2,916

3,271

3,361

3,239

Adjusted EBITDA

F9

527

599

720

753

804

Adjusted EBIT

F9

351

410

514

509

536

F9

18

30

5

11

8

EBIT adjustments

F9

(110)

(46)

(14)

(30)

(237)

Total EBIT

F9

232

343

500

479

299

12.5

13.1

15.5

14.8

16.3

F31

14.6

15.1

15.4

12.6

Effective adjusted tax rate F13(in %)

25

25.7

24.4

24.7

Adjusted net profit,
Group share

F9

233

267

326

312

322

Net profit, Group share

F9

131

212

317

288

131

R&D expenditure

F9

156

175

196

211

223

Capital expenditure

F34

287

365

478

553

403

Net Cash flow
before financing

F34

141.9

(381)

(604)

(271)

4,146

5,116

6,053

7,023

1,790

1,803

2,609

2,593

296

840

861

of which associates

Adjusted EBIT margin
Return on Capital
Employed (ROCE) (in %)Total assets, end of period
Group shareholders'equity, end of period
Consolidated net financial
debt, end of period
Gearing ratio, endof period

F24

102

13.8

31.1

24.4

1,443
35.2
1.92x

12.1

Note

2016

2017

2018

2019

Basic adjusted EPS

F39

1.07

1.22

1.36

1.30

1.34

EPS – basic

F39

0.60

0.97

1.33

1.20

0.54

EPS – diluted

F39

0.60

0.96

1.31

1.19

0.54

0.65

0.70

0.75

0.375

0,75

Gross annual dividend forthe yearNet cash flow before
financing, basic

F34

2020

0.65

(1.74)(2.53)(1.13)

0,41

Total assets, end of period

18.96

23.31

25.11

29.17

34.66

Group shareholders’equity, end of period

8.18

8.21

10.83

10.77

10.63

High

29.36

39.88

53.14

43.85

47.49

Low

16.19

24.28

34.17

25.11

29.76

Average

23.89

31.45

45.01

34.24

39.02

Close

27.08

39.46

34.86

43.36

39.29

Shareprice

24.2

99
8,341
2,557
1,414
35.0

Net debt / LTM
adjusted EBITDA

0.56x

1.40x

1.19x

Capital employed, endof period

2397

3,003

3,802

4,442

4,457

Capitalemployed, average

2399

2710

3,344

4,048

4,451

1.76x

Umicore Integrated Annual Report 2020

Statements
NET DEBT / LTM ADJUSTED EBITDA

CAPITAL EXPENDITURE

Millions of Euros

Millions of Euros

Millions of Euros

Millions of Euros

0

0

0

553

2016
2017
2018
2019
2020

403

478

365

500

287

1,414

1,443

1,000

1,000
2016
2017
2018
2019
2020

861

840

3,239

3,361

3,271

2016
2017
2018
2019
2020

296

2,500

2,000
2,916

599

5,000
2016
2017
2018
2019
2020

2,667

500

527

505

1,000

804

REVENUES (EXCLUDING METAL)

720

ADJUSTED EBITDA

103

0

EFFECTIVE ADJUSTED TAX RATE

RETURN ON CAPITAL EMPLOYED (ROCE)

Euros

Euros

%

%

0

R&D EXPENDITURE

ADJUSTED EBIT

Millions of Euros

Millions of Euros

0

1.34

2016
2017
2018
2019
2020

23.2

25.0

2016

16
25.7

2017

24.4

2018

24.7

2019

14.6
15.1

24.2

2020

12

2016

2017

15.4
12.6
2018

2019

12.1
2020

536

509

514

500

410

2016
2017
2018
2019
2020

351

223

211

196

175

1,000
156

200

1.30

1

0

400

1.36

26.4
1.22

2
2016
2017
2018
2019
2020

1.07

0.375

0.70

0.65

1

0.75

BASIC ADJUSTED EPS

0.75

GROSS DIVIDEND

2016
2017
2018
2019
2020

0

Umicore Integrated Annual Report 2020

Statements

264

234

168

185

154

9.2

0.4

0

0

0

Total EBIT

126

161

162

185

96

Adjusted EBIT margin

12.3

13.2

12.4

12.7

11.3

R&D expenditure

102

120

135

147

139

Capital expenditure

46

45

79

104

64

Capital employed, end of period

911

1,150

1,265

1,537

1,727

Capital employed, average

918

1,014

1,200

1,358

1,596

Return on Capital Employed (ROCE) (in %)

16.6

16.3

14

13.6

9.6

Workforce, end of period(fully consolidated)

2,464

2,952

3,070

3,190

3,073

Workforce, end of period (associates)

177

-

-

-

-

1,460

1,163

264

R&D EXPENDITURE

ADJUSTED EBIT

Millions of Euros

Millions of Euros

200
100

2016
2017
2018
2019
2020

0

200

2016
2017
2018
2019
2020

0

RETURN ON CAPITAL EMPLOYED (ROCE)CAPITAL EXPENDITURE%

Millions of Euros

20

4

1,364

237

165

14
16.6

16.3

2016

2017

200

13.6
9.6

2018

2019

2020

100

64

224

152

185

203

Adjusted EBIT

0104

Adjusted EBITDA

0

168

1,364

79

5,917

1,460

165

4,539

1,360

2016
2017
2018
2019
2020

1,000

45

3,311

1,253

2,000

152

3,091

1,163

234

2020

147

2,779

Total revenues (excluding metal)

2016
2017
2018
2019
2020

139

2019

135

Total turnoverof which associates

2018

120

2017

102

2016

237

250

Millions of Euros unless stated otherwise224

KEY FIGURES

203

500

154

Millions of Euros

1,360

Millions of Euros

1,253

REVENUES (EXCLUDING METAL)

46

2 Catalysis

ADJUSTED EBITDA

104

2016
2017
2018
2019
2020

0

Umicore Integrated Annual Report 2020

Statements

257

183

75

0.9

5

5

Total EBIT
Adjusted EBIT margin

74

110

251

154

(36.2)

13.2

14.6

19.8

14.5

6.7

R&D expenditure

20

30

39

46

58

Capital expenditure

144

225

316

348

252

Capital employed, end of period

752

1,206

1,769

2,324

2,133

Capital employed, average

695

978

1,469

2,014

2,209

Return on Capital Employed (ROCE) (in %)

11.7

14.4

17.5

9.1

3.4

Workforce, end of period(fully consolidated)

2,357

2,716

3,447

3,997

3,761

847

917

782

751

727

Workforce, end of period (associates)

50

2016
2017
2018
2019
2020

0

500
250

2016
2017
2018
2019
2020

0

RETURN ON CAPITAL EMPLOYED (ROCE)CAPITAL EXPENDITURE%

Millions of Euros

500

32
11.7

0

1,045

894

610

198

100

75

141
10.5

Millions of Euros

2016

14.4

2017

17.5
9.1

2018

2019

3.4

250

2020

0

252

82
1.0

Millions of Euros

348

186

257

1,045

271

316

1,225

323

141

1,289

198

225

894

132

82

610

Adjusted EBITDA

ADJUSTED EBIT

144

Total revenues (excluding metal)

R&D EXPENDITURE

58

2020
2,811

46

2019
2,938

39

2018
3,650

30

2017
2,392

of which associates

1,000

2016
2017
2018
2019
2020

0

20

2016
1,469

Adjusted EBIT

2,000

0

Millions of Euros unless stated otherwise

Total turnover

2016
2017
2018
2019
2020

183

KEY FIGURES

132

250

323

500

1,289

Millions of Euros

1,225

Millions of Euros

271

REVENUES (EXCLUDING METAL)

186

3 Energy and Surface
Technologies

ADJUSTED EBITDA

105

2016
2017
2018
2019
2020

Umicore Integrated Annual Report 2020

Statements

250

2016

2017

2018

2019

2020

6,886

7,327

7,625

11,32013,904

Total revenues (excluding metal)

641

650

626

681

836

Adjusted EBITDA

187

189

195

250

425

Adjusted EBIT

125

128

135

188

362

R&D EXPENDITURE

ADJUSTED EBIT

Total EBIT

115

121

126

190

311

Millions of Euros

Millions of Euros

Adjusted EBIT margin

19.5

19.7

21.5

27.6

43.3

R&D expenditure

23

19

15

8

10

Capital expenditure

72

79

68

82

72

Capital employed, end of period

498

474

546

405

447

Capital employed, average

474

495

483

479

502

Return on Capital Employed (ROCE) (in %)

26.3

25.8

27.9

39.3

72

Workforce, end of period(fully consolidated)

3,170

3,092

2,832

2,849

2,769

0

362
188

2016
2017
2018
2019
2020

0

Millions of Euros

72
26.3

25.8

27.9

2016

2017

2018

100

39.3

2019

2020

68

72

82

%

79

CAPITAL EXPENDITURE

72

RETURN ON CAPITAL EMPLOYED (ROCE)

72

0

128

250

125

10

8

500

2016
2017
2018
2019
2020

15

20

19

40

24

2016
2017
2018
2019
2020

0

23

Total turnover

836

1,000

2016
2017
2018
2019
2020

135

Millions of Euros unless stated otherwise

195

187

189

KEY FIGURES

425

500

681

Millions of Euros

650

Millions of Euros

626

REVENUES (EXCLUDING METAL)

641

4 Recycling

ADJUSTED EBITDA

106

2016
2017
2018
2019
2020

0

Umicore Integrated Annual Report 2020

Statements

5 Distribution of economic
benefits
The most significant portion of Umicore’s total income was used to secure the metal component of raw
materials (the cost of which is passed on to the customer). After subtracting other raw materials costs,
energy-related costs and depreciation, the remaining economic benefits available for distribution stoodat € 1.13 billion.
The biggest portion (€ 798 million) was distributed to employees. The bulk of employee benefits
was in the form of salaries, with the balance going to national insurance contributions, pensions andother benefits.
Net interest to creditors totaled € 57 million, while taxes to the governments and authorities in theplaces where we operate, totaled € 79 million. The earnings attributed to minority shareholders were
€ 4.8 million.

107

DISTRIBUTION OF ECONOMIC BENEFITS
Millions of Euros

unit
Economic value distributed (including contibution from associates) MILLIONS OF EUROS

2020
20,785.4

Raw materials cost (excluding water, gas & electricity)

MILLIONS OF EUROS

Water, gas & electricity cost

MILLIONS OF EUROS

99.7

Depreciation & impairments

MILLIONS OF EUROS

362.5

Other costs (net)MILLIONS OF EUROS

532.8

MILLIONS OF EUROS

1,131.9

Total taxes

MILLIONS OF EUROS

78.5

Creditors

MILLIONS OF EUROS

57.9

Minority Shareholders

MILLIONS OF EUROS

4.8

Shareholders (dividends only)

MILLIONS OF EUROS

60.2

Retained by the company

MILLIONS OF EUROS

130.5

Charitable donations

MILLIONS OF EUROS

1.5

Employee compensation & benefits

MILLIONS OF EUROS

798.5

Direct economic value generated

18,719.6

Subject to approval by shareholders at the AGM in April 2021, Umicore’s Supervisory Board will proposea gross annual dividend of € 0.75 per share for the full year 2020. This compares to a full dividend of€ 0.375 per share paid out for the financial year 2019. Taking into account the interim dividend of € 0.25
per share paid out on 25 August 2020 and subject to shareholder approval, a gross amount of € 0.50
per share will be paid out on 5 May 2021. This is in line with Umicore’s policy of paying a steady or
gradually-increasing dividend.
In 2020, Umicore charitable donations amounted to € 1.5 million.

Umicore Integrated Annual Report 2020

Statements

108

Financial statements
CONSOLIDATED INCOME STATEMENT

109

F12 INCOME FROM OTHER FINANCIAL INVESTMENTS

140

F28 STOCK OPTION PLANS GRANTED BY THE COMPANY161

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

109

F13 INCOME TAXES

141

F29 ENVIRONMENTAL PROVISIONS

162

CONSOLIDATED BALANCE SHEET110

F14 INTANGIBLE ASSETS OTHER THAN GOODWILL

142

F30 PROVISIONS FOR OTHER LIABILITIES AND CHARGES

163

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

111

F15 GOODWILL

143

F31 CAPITAL EMPLOYED164

CONSOLIDATED STATEMENT OF CASH FLOW112

F16 PROPERTY, PLANT AND EQUIPMENT

144

F32 FINANCIAL INSTRUMENTS BY CATEGORY

165

Notes of the financial statements

113

F17 INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD 146

F33 FAIR VALUE OF FINANCIAL INSTRUMENTS (DERIVATIVES)

170

F1

BASIS OF PREPARATION

113

146

F34 NOTES TO THE CASH FLOW STATEMENT

174

F2

ACCOUNTING POLICIES

113

F18 FINANCIAL ASSETS AT FAIR VALUE THROUGH OCI AND
LOANS GRANTEDF35 OFF-BALANCE SHEET RIGHTS AND COMMITMENTS

175

F3

FINANCIAL RISK MANAGEMENT

123

F19 INVENTORIES147

F36 CONTINGENCIES

175

F4

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

127

F20 TRADE AND OTHER RECEIVABLES

147

F37 RELATED PARTIES

176

F5

GROUP COMPANIES129

F21 TAX ASSETS AND LIABILITIES

149

F38 EVENTS AFTER THE REPORTING PERIOD

176

F6

FOREIGN CURRENCY MEASUREMENT

130

F22 NET CASH AND CASH EQUIVALENTS

150

F39 EARNINGS PER SHARE

177

F7

SEGMENT INFORMATION

131

151

F40 IFRS DEVELOPMENTS

177

F8

BUSINESS COMBINATIONS AND ACQUISITIONS OF
ASSOCIATES AND JOINT VENTURES

135

F23 CURRENCY TRANSLATION DIFFERENCES AND
OTHER RESERVESF24 FINANCIAL DEBT152

RESULT FROM OPERATING ACTIVITIESF41 AUDITORS’ REMUNERATION136

F25 TRADE DEBT AND OTHER PAYABLES

154

PARENT COMPANY SEPARATE SUMMARIZEDFINANCIAL STATEMENTS

F10 PAYROLL AND RELATED BENEFITS

139

F26 LIQUIDITY OF THE FINANCIAL LIABILITIES155

MANAGEMENT RESPONSIBILITY STATEMENT

F11 FINANCE COST – NET

140

F27 PROVISIONS FOR EMPLOYEE BENEFITS

157

F9

177
178
180

Umicore Integrated Annual Report 2020

Statements

CONSOLIDATEDINCOME STATEMENT
Thousands of Eurosout for the financial year 2019. Taking into account the interim dividend of € 0.25 per share paid out on
25 August 2020 and subject to shareholder approval, a gross amount of € 0.50 per share will be paid out
on 5 May 2021.
The notes F1(p. 113) through Parent company separate summarized financial statements(p. 178) are an
integral part of these consolidated financial statements
Notes

2019

2020

TurnoverF917,485,080

20,710,116

Other operating income

F9121,078

80,602OPERATING INCOME

17,606,158

20,790,718

Raw materials and consumables

F9(15,639,139)(18,819,323)

Payroll and related benefits

F10(775,919)(798,481)

Depreciation and impairments

F9(307,567)(362,497)

Other operating expenses

F9(413,795)(506,587)

OPERATING EXPENSES
Income (loss) from other financial assets

109(17,136,420) (20,486,887)
F12

RESULT FROM OPERATING ACTIVITIES

706

761

470,444304,592

Financial income

F11

4,808

4,044

Financial expenses

F11(56,427)(77,801)

Foreign exchange gains and losses

F11(31,618)(30,445)

Share in result of companies accounted for using the equity method

F17

CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
Thousands of Euros

Notes

2019

2020

299,220

135,927

Changes due to remeasurements of post employment benefit obligations(71,921)(25,198)

Changes in deferred taxes directly recognized in othercomprehensive income

19,869

7,258

Profit (loss) of the period from continuing operations
Items in other comprehensive income that will not be reclassified to P&L

Items in other comprehensive income that may be subsequently reclassified
to P&L

8,705(5,332)395,912

195,058

Changes in financial assets at FV through OCI reserves(96,692)(59,131)

Changes in cash flow hedge reserves

PROFIT (LOSS) FROM CONTINUING OPERATIONS

299,220

135,928

Profit (loss) of the period

299,220

135,927

Changes in deferred taxes directly recognized in othercomprehensive income

8,897(3,456)

Changes in currency translation differences

9,444(122,258)

PROFIT (LOSS) BEFORE INCOME TAX
Income taxes

F13of which minority share

11,4295,397

of which Group share

287,791

130,530(EUR)
Basic earnings per share from continuing operations

F39

1.20

0.54

Diluted earnings per share from continuing operations

F39

1.19

0.54

0.75

0.25

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 will propose a gross annual dividend for the financial year 2020 of € 0.75 per shareat the Annual General Meeting on 29 April 2021. This compares to a full dividend of € 0.375 p.s. paid

OTHER COMPREHENSIVE INCOME FROM CONTINUING OPERATIONS(4,193)
17,321(61,678)(130,525)

237,5415,402

of which Group share

225,3122,952

of which minority share

12,2302,450

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

F23

(9)
(27,958)

The deferred tax impact on the consolidated statement of comprehensive income is due to the cash flow
hedge reserves for € -3.5 million and to employee benefit reserves for € 7.3 million.
The notes F1(p. 113) through Parent company separate summarized financial statements(p. 178) are an
integral part of these consolidated financial statements

Umicore Integrated Annual Report 2020

Statements

CONSOLIDATEDBALANCE SHEET
Thousands of Euros

Thousands of Euros

Notes

Non-current assets
Intangible assets

31/12/2019

31/12/2020

EQUITY OF THE GROUP

2,660,464

2,621,856

Group shareholders' equity

2,593,474

2,557,182

Share capital and premiums

1,384,273

1,384,273

Retained earnings

1,678,355

1,749,655

Currency translation differences andother reserves
31/12/2019

31/12/2020

2,810,228

2,895,694

Notes

110

F23

(284,453)(367,825)

Treasury shares(184,701)(208,921)

Minority interest

66,99864,674

1,686,801

2,359,901

NON-CURRENT LIABILITIES

F14, F15

370,859

346,888

Property, plant and equipment

F162,094,672

2,163,661

Investments accounted for using theequity method

F17

150,642

139,839

Financial assets at fair value through Other
Comprehensive Income

F18

8,352

Provisions

Loans granted

F18

2,192

3,252

CURRENT LIABILITIES

Trade and other receivables

F20

12,038

11,765

Financial debt

F24

564,063

719,177

Deferred tax assets

F21

168,927

221,938

Trade and other payables

F25

1,916,348

2,418,929

4,213,162

5,445,199

F21

131,483

160,7342

80

F29, F30

64,23060,296

7,023,390

8,340,893

CURRENT ASSETS
Loans granted

F18

10,897

Inventories

F19

2,462,330

2,718,092

Trade and other receivables

F20

1,433,659

1,677,167

Income tax receivables

F21

45,44739,553

Cash and cash equivalents

F22271,724

1,010,307

7,023,390

8,340,893

TOTAL ASSETS

Provisions for employee benefits

F27

392,651

426,356

Financial debt

F24

1,151,083

1,705,154Trade and other payables

F25

24,12023,505

Deferred tax liabilities

F21

11,461

22,846

F29, F30

107,487

182,040

2,676,124

3,359,136

Income tax payable
Provisions
TOTAL EQUITY & LIABILITIESThe notes F1(p. 113) through Parent company separate summarized financial statements(p. 178) are an
integral part of these consolidated financial statements

Umicore Integrated Annual Report 2020

Statements

111

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital & premiums

Reserves

Currency translation &other reserves

Treasury shares

Minority interest

Total for continuing operations

1,384,273

1,610,882(227,644)(158,103)

49,9272,659,336-(34,110)

-

-

544

(33,566)

1,384,273

1,576,772(227,644)(158,103)

50,471

2,625,770

Result of the period-

287,791--

11,428299,220

Other comprehensive income for the period--(62,480)-802(61,678)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD-

287,791(62,480)-

12,231

237,543

Changes in share-based payment reserves

-

-

8,211

-

-

8,211

Capital increase

-

-

-

-

15,541

15,541Dividends-(186,394)--(11,246)(197,640)

Transfers-

179(2,540)

2,361

-

-

Changes in treasury shares

-

-

-

(28,959)-(28,959)
2,660,464

Thousands of Euros
Balance at the beginning of 2019
Change in accounting policies
RESTATED BALANCE AT THE BEGINNING OF 2019

BALANCE AT THE END OF 2019

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)(64,941)

Transfers-

917(3,645)

2,727

-

-

Changes in treasury shares

-

-

-

(26,947)-(26,947)

1,384,273

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

64,674

2,621,856

BALANCE AT THE END OF 2020

The legal reserve of € 55.0 million which is included in the retained earnings is not available for distribution. The share capital of the Group as at 31 December 2020 was composed of 246,400,000 shares with nopar 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 notes F1(p. 113) through Parent company separate summarized financial statements(p. 178) are an integral part of these consolidated financial statements.

Umicore Integrated Annual Report 2020

Statements

CONSOLIDATED STATEMENTOF CASH FLOW
Thousands of Euros

Notes

Profit (loss) from continuing operations
Adjustments for profit of equity companies

Thousands of Euros

299,220

135,927(8,705)

5,332

207,302449,023

Adjustments for items to disclose separately or under investing andfinancing cashflows

F34

129,568

116,051

Change in working capital requirement

F34(78,441)(103,756)

Cashflow generated from operations

548,946

602,576

Dividend received

11,454

2,026

Tax paid during the period(86,661)(78,955)

Government grants received

5,444

2,673

F34

479,182

528,320

Acquisition of property, plant and equipment

F16(529,487)(391,475)

Acquisition of intangible assets

F14(58,362)(44,060)

Acquisition of new subsidiaries, net of cash acquired

F8(188,138)(156)

Acquisition of financial assets

F18(2,375)(1,633)New loans extended

F18

(126)

(752)

(778,489)(438,076)

Disposal of property, plant and equipment

11,7771,475

Disposal of intangible assets

9,329

6,619

910

518

Disposal of subsidiaries and associates, net of cash disposed
Repayment of loans

F18

SUB-TOTAL DISPOSALSNET CASHFLOW GENERATED BY (USED IN) INVESTING ACTIVITIES

F34(28,959)(26,947)(16,536)(19,801)

F24

New loans and repayments

F34

SUB-TOTAL ACQUISITIONS

27

Own sharesInterest paid

2020

6,442

0

28,457

8,613(750,032)(429,463)

2020

15,541

Interest received

2019

2019

Capital increase (decrease) minority
Change in lease liability

Adjustment for non-cash transactions

NET OPERATING CASHFLOW

Notes

112

F24

4,608

3,392

(44,158)(59,689)

517,106

806,036

Dividends paid to Umicore shareholders(186,387)(60,141)

Dividends paid to minority shareholders(11,246)(4,800)249,969

638,076

NET CASHFLOW GENERATED BY (USED IN) FINANCING ACTIVITIES

F34

Effect of exchange rate fluctuations
TOTAL NET CASHFLOW OF THE PERIOD

2,997

25,465(17,884)

762,399

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

F22

257,114239,230

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

F22239,230

1,001,630

of which cash and cash equivalents

271,724

1,010,307

of which bank overdrafts(32,493)(8,678)The notes F1(p. 113) through Parent company separate summarized financial statements(p. 178) are an
integral part of these consolidated financial statements.

Umicore Integrated Annual Report 2020

Statements

Notes of thefinancial 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(p. 3) through Management Responsibility Statement(p. 180) for the year ended 31 December
2020 were authorized for issue by the Supervisory Board on 12 March 2021. They have been preparedin accordance with the legal and regulatory requirements applicable to the consolidated financial
statements of Belgian companies. They include those of the company, its subsidiaries and its interests incompanies accounted for using the equity method.

F1 BASIS OF PREPARATIONThe 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
at fair value.

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.

113

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
from 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 CONTROLTransactions 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.

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

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.

Umicore Integrated Annual Report 2020

Statements
2.1.3 DISPOSAL OF SUBSIDIARIESWhen 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
are accounted for using the equity method of accounting. Under the equity method, the investment isinitially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’sshare 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
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.

114

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 inbusiness units. Operating segments under IFRS 8 at Umicore are differentiated by their growth drivers in
the areas of 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
for industrial emissions control and produces precious metalsbased 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-oflife 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.

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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.

115

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.

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.

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.

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.

Subsequently, monetary assets and liabilities denominated in foreign currencies are translated at theclosing rate at the end of the reporting period.

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

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.

Operating segments are reported in a manner consistent with the internal reporting provided to thesupervisory board and the management board.

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:● 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.

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.
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.

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.

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

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

116

2.6.2 GOODWILL
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.
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.
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.

years
Land

Non-depreciable

Buildings- Industrial buildings

20- Improvements to buildings

10- Other buildings such as offices
and laboratories

40- Investment properties

40

Plant, machinery and equipment

10- Furnaces

7- Small equipment

5

Furniture and vehicles- Vehicles- Mobile handling equipment

5

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.

7- Computer equipment

3-5- Furniture and office equipment

5 - 102.6 INTANGIBLE ASSETS & EQUITY TRANSACTION EXPENSES
2.6.1 EQUITY TRANSACTION EXPENSES
Expenses for formation and capital increase are deducted from the share capital.

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.

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.
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

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intangible assets, which is in line with the guidance 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 is below the carrying value, a write-down is booked. At eachclosing date, the group estimates the actual use 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 fully compensated in the income statement by the release of deferred
revenue. Historically, Umicore owns the required 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.

117

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.

In case of an earn-out component, a remeasurement is foreseen, adapting the carrying amount of theasset and the amortization accordingly.

Financial assets at fair value through OCI are carried at fair value. Unrealized gains and losses fromchanges in the fair value of such assets are recognized in equity as financial assets at fair value throughOCI 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.

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

Loans and receivables are carried at amortized cost less any impairment.

2.7 LEASEIFRS 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).

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.

The lease liabilities are recognized at the present value of the remaining lease payments (see note F24).
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.

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

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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 to priceﬂuctuation 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.
● On the commercially available metal inventories : as they are hedged, see note F3, Umicore applies
the mark-to-market valuation principles. The classification of these mark-to-markets depends if
Umicore obtained IFRS 9 Fair Value hedge accounting, see note F2.21.1 transactional risks – fairvalue hedging.
● On the other Base products, LOCOM (lower of cost or net realizable value, meaning the estimatedselling price less the estimated costs of completion and the estimated cost necessary to make thesale) and slow moving principles are applied. Any write-downs booked are classified under thecaption 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.

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 a new 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, ageingbalances, 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 the metal in the future. An asset representing the metal which the Groups has committed to sellor a liability representing the obligation to repurchase the metal are recognized in trade and otherreceivables or trade and other payables, respectively. Accordingly, principal cash flows in respect of saleand repurchase agreements 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 theunderlying 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 leaseand factoring fees. No revenues are recognized in respect of the sale leg or costs are recognized in respectof the purchase leg 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.

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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 isrecognized 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.

2.15 PROVISIONS
Provisions are recognized in the balance sheet when:● 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.

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.

The main types of provision are the following:

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.

The full amount of the estimated obligation is recognized at the moment the event occurs.

C. Dividends of the parent company payable on ordinary shares are only recognized as a liability following
approval by the shareholders.

119

1. PROVISIONS FOR EMPLOYEE BENEFITS (SEE NOTE F2.16, EMPLOYEE BENEFITS)
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.

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

3. OTHER PROVISIONS
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.

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.

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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.

120

contribute the extra funding required. For this reason, 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 this as 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.
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 secures 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

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.
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

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model which takes into account all features of the stock options, the volatility of the underlying stock andan 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’.
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 LIABILITIESAll movements in financial liabilities are accounted for at trade date.
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 F2.23.1).
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
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 the metal in the future. An asset representing the metal which the Groups has committed to sellor a liability representing the obligation to repurchase the metal are recognized in trade and otherreceivables or trade and other payables, respectively. Accordingly, principal cash flows in respect of sale121

and repurchase agreements 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 theunderlying 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 leaseand factoring fees. No revenues are recognized in respect of the sale leg or costs are recognized in respectof the purchase leg 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.
2.19 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.
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 Groupto be supportable and are intended to withstand challenge from tax authorities. However, it is acceptedthat some 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 amountor 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.
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

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Statements
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.
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:● 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.
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 tobe 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.
For sales within Recycling, the revenue is recognized at a point in time when the control of the refined
products or metal is back in the hands of the customers (refinery) or in the hands of the customers (saleof metal, including boni), embarked by the delivery.
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.

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

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123

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 of foreignexchange 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

When the underlying hedged transactions are no longer probable or the hedges become ineffective,
the corresponding hedging instrument will immediately be terminated and all profits or losses including
those which were deferred in equity, are immediately recognized in the income statement.

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.

2.21.3 EMBEDDED DERIVATIVES
Executory contracts (the “host contract”) may sometimes contain embedded derivatives.

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.

Embedded derivatives cause some or all of the cash flows that would otherwise be expected from thehost contract, 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 to the host contract, it is separated from the host contract and accounted for under the rules of
IFRS 9 (fair value through profit or loss). The host contract is accounted for using the rules applicable toexecutory contracts, which effectively means that such a contract is not recognized in the balance sheet
or profit and loss before delivery on the contract takes place.

In the absence of reaching the IFRS 9 bottom layer criteria or the net position criteria for closed portfolios
or in the absence of market-based derivatives and so obtaining fair value hedge accounting at inception
as defined under IFRS 9, the hedged items are kept at cost and are subject to IAS 37 principles. In
practice this means that Umicore offsets any initially booked material positive mark-to-markets with
provisions for onerous contracts and reclassifies the negative mark-to-markets under the provisions foronerous contracts.
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 fairvalue 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.

In the absence of obtaining cash-flow hedge accounting at inception as defined under IFRS 9, then thefair value of the related hedging instruments is recognized in the income statement instead of the equity
and this prior to the occurrence of the underlying forecasted or committed transactions.

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

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Statements
3.1.1 STRUCTURAL RISK
A portion of Umicore’s revenues are structurally denominated in US dollar (USD), while many of therelated 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.
An increasing portion of the structural risk exposure stems from non-metal related revenues
denominated in USD such as product premiums and refining charges. This increase is particularly
related to the accelerating growth in battery materials activities in Asia.
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 South African rand (ZAR) and the Brazilian real (BRL).

124

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
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.

Structural currency hedging

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

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 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.

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 amountand 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 item andhedging instrument or changes in exposure amounts.

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.

At the end of 2020, 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/ZAR and USD/CAD.
3.1.2 TRANSACTIONAL RISKThe 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 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 overtime 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

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Statements
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 2020 andearly 2021, Umicore entered into additional forward contracts, thereby securing a substantial portion ofits structural future price exposure to certain precious metals and providing increased earnings visibility.
For 2021 and 2022, approximately two thirds of the expected gold and palladium exposure and somewhat
less than half of the expected silver exposure have been locked-in. In addition, close to one third of the
expected platinum exposure for 2021 has been hedged. In spite of the absence of a liquid futures market,
Umicore entered in recent months into forward contracts locking in a minority of its expected 2022 and2023 rhodium exposure. Finally, Umicore also hedged the majority of its expected lead exposure for 2021
and 2022.
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.
3.2.2 TRANSACTIONAL RISKThe 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 thelapse of time between the conversion of purchased raw materials into products and the sale of products,
the volatility in the reference metal price creates differences between the price paid for the contained
metal and the price received.

125

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 offsets any material positive
mark-to-markets with provisions for onerous contracts and reclassifies the negative mark-to-markets
under the provisions for onerous contracts.
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.
3.3 INTEREST RATE RISKInterest 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 2020, the Group’s gross ﬁnancial debt stood at

Umicore Integrated Annual Report 2020

Statements€ 2,424 million, of which 1,609 million carrying a ﬁxed interest rate. The outstanding interest rate swaps
totaled € 40 million and will expire in 2023.
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 bycredit 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 a world-wide basis. This contract protects the insured activities against insolvency, political andcommercial risks with an individual deductible per invoice of 5% and foresees an indemnification cap
set at regional or country levels. Umicore has determined that in a certain number of cases where thecost 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 a certain period. It should be noted that some sizeable transactions, such as the sales ofprecious 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 arrangements or 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 are set, per financial instrument, covering the various risks to which theGroup is exposed when transacting with 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 asufficient diversification of such funding sources, by matching as close as possible the maturity profilesof 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 bankdraft lines, metal lease lines, commercial paper issuance and long term private debt placements.
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

126

and engage tax authorities to ensure that the Group’s tax affairs are as current as possible and that any
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 MANAGEMENTThe 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-related

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Statements
risks. In the past, certain metals such as for example rhodium or cobalt showed high price volatility related
to supply tightness considerations. Please refer to the chapter about Managing Risk Effectively(p. 76) fora description of some of these risks and an outline of Umicore’s general approach to risk management.
Umicore does not expect a material direct financial impact from the Brexit.
3.9 COVID-19 RELATED RISKSThe COVID-19 outbreak in 2020 resulted in higher financial risks for Umicore. In response to decreased
volumes in certain business segments, the recoverable amounts of some individual non-current assets(PPE, IP and capitalized development costs) within such segments was assessed and impairments onthese individual assets were accounted for. In addition, Umicore assessed its production footprint resulting
in some restructuring measures. We refer to the Adjustments section of note F9 for more details. COVID-19
also triggered potentially higher liquidity and credit risks that the Group managed effectively in 2020.
Umicore’s sources of funding were increased and further diversified and we refer to note F24 Financial
debt for more details. Credit risks were closely monitored and the Group faced no material credit losses
in 2020; we refer to note F20 Trade and other receivables for more details. As the COVID-19 pandemic
extends into 2021, related risks remain relevant.

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.

127

4.1 IMPAIRMENT TESTINGThe 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
in accordance with the accounting policy. This value in use is calculated by discounting related future
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 2020, the carrying amount of the goodwill for the consolidated entity was€ 156.0 million (€ 156.7 million in 2019). We refer to note F15 Goodwill for more details on the annual
goodwill impairment testing.
4.2 REHABILITATION OBLIGATIONSProvision 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 2020, the carrying amountof rehabilitation provisions was € 108.2 (€ 58.0 million in 2019). 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

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128

31 December 2020, a liability with respect to employee beneﬁt obligations of € 426.4 million wasrecognized (€ 392.6 million in 2019).

As at 31 December 2020, the carrying amount of the provisions for other liabilities and charges amountto € 80.1 million (€ 80.7 million in 2019).

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.

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 seven 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 the expected value, consisting to the sumof the probability - 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. Group provision for uncertainty
over tax treatments at December 2020 amounting to € 114.9 million (2019 : € 91.4 million) results in
an increase of those liabilities by € 23.5 million. This provision was booked under Income Tax Payablein the consolidated balance sheet. The movement of the year corresponds from remeasurement androll-forward of existing uncertaint tax positions; reversal of uncertain tax position based on mitigation
actions taken and on the expiration of the statute of limitation; and the recognition of newly uncertain
tax positions.

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 CHARGESAs mentioned under notes 2.21.1 and 3.2.2., Umicore’s policy is to hedge to the maximum extent possible
its transactional metal price risk, applying IFRS 9 based fair value hedge accounting to the extent there
are market-based derivatives available.
In the absence of such market-based derivatives or in the absence of obtaining fair value hedge
accounting at all, the hedged items are kept at cost and are subject to the IAS 37 principles, in particular
the onerous contract judgment.
The onerous contract provision decisions related to replicate maximally the IFRS 9 fair valuation on
Umicore’s metal transactional positions are based on the one hand on an assessment of the level ofcommitment expected from a third party to honor its contractual obligations towards Umicore (in theevent the metal price at the close would be substantially higher (lower) than the contracted metal pricein the case of Umicore purchases (sales)) and on the other hand on the commitment of Umicore to honor
itself contractual transactional metal obligations out of the money
Both in 2019 and 2020, the market volatility in the cobalt price and in 2020 as well in the nickel pricetriggered such risk assessments.
The amount of such onerous contract provisions stood at € 20.0 million end 2020 (€ 24.1 million end 2019).
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 2020 its dedicated provisioning model forbattery materials as introduced in 2018.

Umicore Integrated Annual Report 2020

F5 GROUP COMPANIES
Below is a list of the main operating companies included in the consolidated financial statements

Statements

129% INTEREST IN% INTEREST IN

2019

2020

FranceUmicore France S.A.S.

100.00100.00-Umicore IR Glass S.A.S.

100.00100.00-Umicore Autocat France S.A.S.

100.00100.00% INTEREST IN% INTEREST IN

2019

2020

-

Umicore Specialty Powders France S.A.S.

100.00100.00-Umicore Marketing Services France

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

91.21

-

Umicore Galvanotechnik GmbH

91.21

91.21

-

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-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

MexicoTodini Atlántica S.A. de C.V.

70.00

70.00

Netherlands

Schöne Edelmetaal BV

91.21

91.21

Philippines

Umicore Specialty Chemicals Subic Inc.

78.20

78.20

PolandUmicore Autocat Poland sp. z o.o.

100.00100.00-Todini Europe sp. z o.o.

70.00

70.00

-

Umicore 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

91.29

Belgium

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-Clarex100.00100.00-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

100.00100.00Umicore Integrated Annual Report 2020

Statements% INTEREST IN% INTEREST IN

2019

2020

PortugalUmicore 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

91.21

TaiwanUmicore Thin Film Products Taiwan Co Ltd

100.00100.00ThailandUmicore Precious Metals Thailand Ltd.

91.21

91.21

-

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 Specialty Materials Recycling, LLC.

100.00100.00-Umicore Catalyst USA, LLC

100.00100.00130

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

2019

2020

2019

2020

American Dollar

USD

1.123

1.227

1.119

1.142

UK Pound Sterling

GBP

0.851

0.899

0.878

0.890

Canadian Dollar

CAD

1.460

1.563

1.485

1.530

Swiss Franc

CHF

1.085

1.080

1.112

1.071

Japanese Yen

JPY

121.940

126.490122.006

121.846

Brazilian Real

BRL

4.528

6.377

4.416

5.889

South African Rand

ZAR

15.77718.022

16.17618.765Chinese Yuan

CNY

7.821

8.023

7.735

7.875

Thai Baht

THB

33.41536.72734.75735.708

Korean Won (100)KRW

12.96313.36013.05313.456(*) 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).

Umicore Integrated Annual Report 2020

Statements

131

F7 SEGMENT INFORMATION

BUSINESS GROUP INFORMATION 2019
Thousands of Euros

Catalysis

Energy & Surface Technologies

Recycling

Corporate & UnallocatedEliminations

Total segment turnover

Notes

4,539,213

2,938,485

11,319,935

58,778(1,371,330)

17,485,081

External turnover

4,444,620

2,877,280

10,104,403

58,778-17,485,081

Inter-segment turnover

Total Continued

94,593

61,2051,215,532-(1,371,330)-

Total segment revenues (excluding metals)

1,459,902

1,225,408

680,981-(5,667)3,360,624

External revenues

1,458,227

1,225,242

677,155--

3,360,624

1,675

166

3,826

-

(5,667)-

184,884

149,065

190,086(53,588)-

470,447

185,270

177,164

188,069(52,371)-498,131(386)(28,099)

2,017(1,217)-(27,684)

-

5,382

-

3,323

-

8,705

-

5,382

-

5,407

-

10,789Inter-segment revenues
Operating result

F9

Adjusted
Adjustments
Equity method companies

F9

Adjusted
Adjustments

-

-

-

(2,084)-(2,084)

184,884

154,447

190,086(50,265)-

479,152

185,270

182,546

188,069(46,964)-

508,920(386)(28,099)

2,017(3,301)-(29,768)F978,50788,30062,313

14,918-244,038

78,50788,30062,313

14,918-244,038F9263,390242,747

252,399(35,346)-

723,190

263,776

270,846

250,382(32,045)-752,959

Consolidated total assets

2,747,773

3,781,786

1,345,517

808,926(1,660,612)

7,023,390

Segment assets

6,872,748

EBIT

F9

Adjusted
Adjustments
Depreciation and amortisation
Adjusted
EBITDA
Adjusted

2,747,773

3,747,271

1,345,517

692,799(1,660,612)

Investments in associates-

34,515-

116,127-

150,642

Consolidated total liabilities

1,254,284

1,435,241

947,340

2,386,672(1,660,612)

4,362,925

Capital Employed at 31/12 of previous year

F31

1,264,885

1,769,135

546,396

221,997-

3,802,413

Capital Employed at 30/06F311,314,779

1,982,482

481,776

195,514-3,974,551

Capital Employed at 31/12

F311,536,950

2,323,770

405,422

175,849-

4,441,991

Average Capital Employed in first half yearF31

1,289,832

1,875,809

514,086

208,756-

3,888,482

Average Capital Employed in second half year

F31

1,425,864

2,153,126

443,599

185,682-

4,208,271

Average Capital Employed in the year

F31

1,357,848

2,014,467

478,842

197,219-

4,048,377

ROCE

F31

13.64%

9.06%

39.28%-23.81%

0.00%

12.57%

Capital expenditure

F34

103,960

348,21782,02318,990-553,189

Total R&D expenditure

F9

146,624

45,619

8,313

9,989

-

210,546

R&D recognized in operating expenses

F9132,01130,687

8,313

4,875

-

175,885

R&D capitalized as intangible assets

F34

14,614

14,933

-

5,114

-

34,660Umicore Integrated Annual Report 2020

Statements

132

BUSINESS GROUP INFORMATION 2020
Thousands of Euros

Catalysis

Energy & Surface Technologies

Recycling

Corporate & UnallocatedEliminations

Total segment turnover

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

Inter-segment turnover

Total Continued

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 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

8,201,054

Depreciation and amortisation

F9

F9

Adjusted
EBITDA

F9

Adjusted

3,447,098

3,337,762

1,643,894

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

Investments in associates-

38,429-101,410-

139,839

Consolidated total liabilities

1,814,687

1,260,177

1,215,316

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

5,719,038

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 Integrated Annual Report 2020

Statements
ADJUSTED EBITDA PER BUSINESS GROUPGEOGRAPHICAL INFORMATION 2019
Thousands of Euros

Notes

Total segment turnover
Total non current assets
Capital expenditure

F34

South
America

AfricaTotal

8,061,295

149,183 4,850,973 3,862,500

528,751

181,563

17,485,081

1,311,600

576,778 1,115,273

144,541

48,186

7,438

2,627,038

156,049

316,729

18,012

12,3952553,189

AsiaPacificNorth
AmericaSouth
America

206,051of which
Belgium

AsiaPacific

%

North
America

EuropeAfricaTotal

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

8,829

14,750306

403,169

F34

Europeof which
Belgium

Total segment turnover
Capital expenditure

Notes

274,403

100,914104,880

REVENUES (EXCLUDING METAL) PER
BUSINESS GROUP%

Catalysis | 27.7
Energy & Surface
Technologies |22
Recycling | 50.3

GEOGRAPHICAL INFORMATION 2020
Thousands of Euros

133

Catalysis | 42
Energy & Surface
Technologies |32.2
Recycling | 25.8

ADJUSTED EBIT PER BUSINESS GROUP%

Catalysis | 26
Energy & Surface
Technologies |12.7
Recycling | 61.2

CAPITAL EXPENDITURE PER
BUSINESS GROUPCAPITAL EMPLOYED, AVERAGE PER
BUSINESS GROUP%%

Catalysis | 15.8
Energy & Surface
Technologies |62.4
Recycling | 17.8
Corporate &Unallocated | 4

Catalysis | 35.9
Energy & Surface
Technologies |49.6
Recycling | 11.3
Corporate &Unallocated |3.2

Umicore Integrated Annual Report 2020

Statements
TURNOVER BY REGION

R&D EXPENDITURE PER BUSINESS GROUP%%CAPITAL EXPENDITURE BY REGIONNON-CURRENT ASSETS BY REGION%%

Europe | 68.1
North America |2.2South America |3.7
Asia-Pacific |26
Africa | 0.1

INCOME TAXES BY REGION%

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 view.
The Group’s business segments have no single external customer that amounts to 10 per cent or more of
the Group’s revenue.

Europe | 52.2
North America |
4.2
South America |1.7
Asia-Pacific |41.7
Africa | 0.2

EMPLOYEE COMPENSATION & BENEFITSBY REGION%

Europe | 61.4
North America |9.1
South America |22.7
Asia-Pacific |2.5
Africa | 4.2

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

Catalysis | 62.2
Energy & Surface
Technologies |26.1
Recycling | 4.6
Corporate &Unallocated |7.1

Europe | 53.7
North America |18.7
South America |2.7
Asia-Pacific |24.2
Africa | 0.7

134

Europe | 71.8
North America |9South America |2.5
Asia-Pacific |15.6
Africa | 1

Umicore determined segments as the accurate level of detail to split the product sales since theunderlying business, competences and technologies, application and product characteristics andcustomer portfolio within each individual segment are similar. Moreover, obtaining information ata more disaggregated level would result in excessive costs and efforts compared to the added value foran external reader of the consolidated financial statements.

BUSINESS GROUPSThe Group is organized into the following reporting segments:

CATALYSISThe segment in 2020 includes the Automotive Catalysts and Precious Metals Chemistry business units.
Catalysis provides automotive catalysts for gasoline and diesel light and heavy-duty diesel applications,
including on-road and non-on road vehicles. The business group also offers stationary catalysis forindustrial emissions control and produces precious metals-based compounds and catalysts for use in fuelcell applications and in the pharmaceutical and fine chemicals industries.

ENERGY & SURFACE TECHNOLOGIESThe segment includes the Cobalt & Specialty Materials, Electro-Optic Materials, Electroplating andRechargeable 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 a

Umicore Integrated Annual Report 2020

Statements

135

closed loop service for the customers. This segment includes the associates Ganzhou Yi Hao Umicore
Industries and Jiangmen Chancsun Umicore Industry.

F8 BUSINESS COMBINATIONS AND ACQUISITIONS OF ASSOCIATES AND
JOINT VENTURESRECYCLING

At the end of November 2019, Umicore completed the acquisition of the cobalt refining and cathodeprecursor activities in Kokkola, Finland, from Freeport Cobalt. A preliminary opening balance sheet was
prepared as of 1 December 2019 but was still subject to adjustments on a number of restatements overthe coming 11 months. Following the final opening balance sheet as per the end of November 2019,the net value of the assets bought represented a total of € 226.6 million (€227.3 million in 2019) andthe total purchase price has been adjusted to € 242.6 million (€241.9 million in 2019). This results in a
goodwill of € 16.0 million (€14.5 million in 2019). The main lines of the balance sheet that have been
updated since 2019 are "Property, plant and equipment" (see note F16), "Inventories", Cash", "Provisions
for environment" (see note F29) and "Trade payables". Those are reflected under the lines "acquisition
through business combinations" of the corresponding impacted notes.

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.
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

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.
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, thedifference between the adjusted operating result and the operating result as presented in the Income
Statement consists of the adjustments for which deﬁnitions are given in the glossary.
Associate companies are allocated to the business group with the closest fit from a market
segment perspective.

Umicore Integrated Annual Report 2020

Statements

Services mainly include the revenues from tolling contracts. Some reclassifications have been done
between services and sales in 2019 to align with the reclassification done in 2020.

F9 RESULT FROM OPERATING ACTIVITIESThousands of Euros
Sales

2019

2020

17,336,517

20,565,648

The line “other operating income” of the income statements include the currency translation differences
due to intercompany transactions to be translated from the transaction currency into functional currency
which may differ from euro for some entities and regions. Those currency translation effects on
intercompany eliminations moved substantially this year, mainly related to the variation of the USD
compared with the EUR.

Services

148,564

144,468

Turnover17,485,081

20,710,116

Re-invoicing of costs to third parties

39,28342,654

Operating grants

10,262

19,865

Royalties and license fees

9,003

6,168

Emission rights income

5,468

5,207

Insurance recovery

27,025

21,580

Various interests and penalties for late payments

1,209

1,167

Gains on disposals of assets

9,744

2,647

Translation difference on intercos Elimination

9,578(25,567)

Tax incentive

1,645

4,247

Other

7,862

2,633

121,078

80,602OPERATING INCOME OF CONTINUING OPERATIONS

17,606,159

20,790,718

Raw materials and consumables used

(15,639,139)(18,819,323)

Payroll and related benefits(775,919)(798,481)

Depreciation of fixed assets(244,038)(267,941)

Impairment loss on fixed assets(23,602)(87,543)

Inventory and bad debt provisions(39,926)(7,013)

Depreciation and impairment results(307,567)(362,497)

Thousands of Euros

Services and outsourced refining and production costs(404,292)(370,526)

R&D recognized in Other operating expenses

Royalties, licence fees, consulting and commissions(41,347)(41,606)

R&D capitalized as intangible assets

Taxes other than income taxes(20,769)(19,332)

Provisions (increase/use and reversals)

54,871(74,128)

TOTAL R&D EXPENDITURE FORCONTINUING OPERATIONSCapital losses on disposal of assets(2,258)(996)

Other operating income

Other operating expenses
OPERATING EXPENSES OF CONTINUING OPERATIONS

136(413,795)(506,588)(17,136,420)(20,486,888)

The increase in raw materials and consumables used is also mainly related to the increase of metal
prices. Raw materials and consumables used include water, gas and electricity for € 99.7 million in 2020(€ 100.2 million in 2019) for continuing operations.
The impairment losses of fixed assets have increased compared with 2019. Those impairments are mainly
related to the restructuring initiatives in Cobalt & Specialty materials and to the consolidation of the North
American automotive catalyst production in Catalysis. It also includes in Catalysis some impairments on
selected capitalized developments costs and licence agreements.
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
Notes
F14

2019

2020

175,885

190,596

34,66032,368210,546

222,964

Total R&D expenditure for continuing operations was € 223.0 million in the fully consolidated companies
in 2020 (€ 210.6 million in 2019). The part of the R&D expenditures that is directly recognized in operating
expenses amounts to € 190.6 million in 2020 (€ 175.9 million in 2019).

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
at a point in time. The increase in turnover in 2020 is mainly related to the increase of metal prices.

Umicore Integrated Annual Report 2020

Statements

137

ADJUSTMENTS INCLUDED IN THE RESULT
2019
Thousands of Euros

Notes

Turnover
Other operating income

2020

Total

Adjusted

Adjustments

Total

Adjusted

17,485,080

17,485,080-

20,710,116

20,710,116

Adjustments-

121,078

118,2172,861

80,602

79,494

1,108

Operating income

17,606,158

17,603,297

2,861

20,790,718

20,789,611

1,108

Raw materials and consumables used

(15,639,139)(15,639,139)-(18,819,323)(18,781,872)(37,451)

Payroll and related benefits(775,919)(775,701)(218)(798,481)(798,131)(350)

Depreciation and impairment results(307,567)(283,690)(23,877)(362,496)(274,435)(88,062)(244,038)(244,038)-(267,941)(267,941)-(413,795)(407,708)(6,087)(506,587)(407,485)(99,102)(17,136,420)(17,106,238)(30,182)(20,486,887)(20,261,923)(224,964)

706

1,069

(363)

761

342

419

470,444498,129(27,684)

304,592

528,030(223,438)

of 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

8,705

10,789(2,084)(5,332)8,331(13,663)

479,152

508,920(29,768)

299,260

536,361(237,101)(237,101)

723,190752,959(29,768)

567,201

804,302

Finance cost

F11(83,238)(83,238)-(104,202)(104,202)-

Income taxes

F13(96,692)(102,538)

5,846(59,131)(102,729)

43,598(193,503)

Net result

299,219

323,142(23,923)

135,927

329,430of which minority shares

11,428

11,428

-

5,397

7,023

(1,626)of which group shares

287,791

311,714(23,923)

130,530

322,407(191,877)

Umicore Integrated Annual Report 2020

Statements

138

ADJUSTMENTS PER SEGMENT AND NATURE INCLUDED IN THE RESULT
2019

2020

Total

Catalysis

Energy &SurfaceTechnologies

Other operating income

2,861

-

-

48

2,813

1,108

-

1,108

-

-

Operating income

2,861

-

-

48

2,813

1,108

-

1,108

-

-

-

-

-

-

-

(37,451)-(37,451)

-

-

(218)

-

-

(218)

-

(350)

-

(350)

-

-

(23,877)(386)(24,217)726-(88,062)(36,565)(51,161)

27

(362)

Thousands of Euros

Raw materials and consumables used
Payroll and related benefits
Depreciation and impairment results

Recycling

Corporate &Unallocated

Total

Catalysis

Energy &SurfaceTechnologies

Recycling

Corporate &Unallocated

Other operating expenses(6,087)-(3,882)

1,461(3,666)(99,102)(20,785)(23,781)(50,942)(3,594)

Operating expenses(30,182)(386)(28,099)

1,969(3,666)(224,964)(57,350)(112,743)(50,915)(3,957)

(363)

-

-

-

(363)

419

-

96

-

322

(27,684)(386)(28,099)

2,017(1,217)(223,438)(57,350)(111,539)(50,915)(3,634)

Income from other financial investments
Result from operating activities
Net contribution from equity method companies(2,084)---(2,084)(13,663)---(13,663)

EBIT(29,768)(386)(28,099)

2,017(3,301)(237,101)(57,350)(111,539)(50,915)(17,297)

Related to restructuring(26,414)(386)(28,099)

2,017

54

(128,190)(22,702)(99,960)-(5,528)Related to environment

(907)

-

-

-

(907)

(55,788)--(50,915)(4,873)

-

-

-

-

-

(45,303)(28,628)(8,219)-(8,456)(2,447)---(2,447)(7,820)(6,020)(3,360)-1,560

Related to asset impairments
Other

Adjustments had a negative impact of € 237 million on EBIT in 2020 of which € 72 million were alreadyrecognized in the first half. Of this total, € 112 million were related to Energy & Surface Technologies.
The latter including € 56 million charges linked to the restructuring initiatives in Cobalt & Specialty
Materials, a resulting € 34 million impairment charge linked to the rightsizing of permanently tied up
cobalt inventories in that same business unit as well as a € 15 million impairment in Rechargeable
Battery Materials due to a site reconfiguration in Korea. Catalysis accounted for € 57 million charges ofwhich € 55 million were already recognized in the first half, linked mainly to the consolidation of theNorth American automotive catalyst production and some impairments including selected capitalized
development costs and license agreements. In Recycling, a charge of € 51 million was accounted for,comprising a € 50 million provision to cover costs related to the intention to buy houses closest to the
Hoboken plant and create a green zone.

environmental items for € 56 million and selected asset impairments for € 45 million. After tax, theadjustments to net group earnings over the period correspond to - € 192 million.

These costs comprise an estimated purchase value of the houses (based on third party appraisal) to be
demolished as well as an estimate of demolition and landscaping costs. Concertation with the city council
and residents is ongoing and might result in adjustments to this cost estimate. Finally, EBIT adjustments
also include € 14 million charges linked to restructuring, property, plant and equipment and goodwill
impairments in Element Six Abrasives, a JV in which Umicore has a 40% stake. Of the total adjustments,€ 147 million have a non-cash nature. Restructuring-related charges account for € 128 million of the total,

Umicore Integrated Annual Report 2020

Statements
F10 PAYROLL AND RELATED BENEFITSSHARE-BASED PAYMENTS
Thousands of Euros

Thousands of Euros

2019

2020

Wages, salaries and direct social advantages(576,097)(589,707)

Other charges for personnel(40,318)(50,594)

Temporary staff(10,781)(7,607)

Share-based payments(8,211)(10,108)

Employee salaries(635,407)(658,016)

Employer's social security(102,364)(97,698)

Defined benefit contributions(36,692)(21,438)

Contribution to defined contribution plan

(11,805)(10,299)

Employer's voluntary contributions (other)(4,120)(4,381)

Pensions paid directly to beneficiaries(3,974)(3,486)

Provisions for employee benefits (-increase / + use and reversals)

18,444(3,164)(38,147)(42,768)(775,919)(798,481)

Pensions and other benefits
PAYROLL AND RELATED BENEFITS OF CONTINUING OPERATIONS139

AVERAGE HEADCOUNT IN CONSOLIDATED COMPANIES

Notes

Date of grant

2019

2020

11-02-2019

10-02-2020
42.05

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

F28

34.08

Share price at the date of grant (France)

F28

36.78

NA

Number of stock options granted

F28

1,221,000

1,168,375

Valuation model

Present Economic Value

Assumed volatility (% pa)

25.00

25.00

Risk-free interest rate (% pa)(0.370)(0.620)

Dividend increase (% pa)

10.00

10.00

Rate of pre-vesting forfeiture (%pa)

NA

NA

Rate of post-vesting leaving (%pa)

7.50

7.50

Minimum gain threshold (% pa)

15.00

15.00

Proportion who exercise given minimum
gain achieved (% pa)

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

5.09

6.46

TOTAL FAIR VALUE OF OPTIONS GRANTED

6,211

7,548

52.000 shares granted at 42,05 EUR

-

2,187

10.000 shares granted at 37,33 EUR

-

373

2019

2020

43.700 shares granted at 34,08 EUR

1,489

-

Executives and managerial staff

1,934

2,009

7.400 shares granted at 33,30 EUR

246-

Non managers

8,852

8,997

10.000 shares granted at 26,43 EUR

264-

Total for continuing operations

10,786

11,006TOTAL FAIR VALUE OF SHARES GRANTED

2,000

2,560

8,211

10,108SHARE-BASED PAYMENTS

The Group recognized a share-based payment expense of € 10.1 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 observed volatility calculated over a 5 year period amounted approximately to 25% despitea recent increase. Hence, the retained volatility assumption was maintained at 25%. No other market
condition has been included on the basis of calculation of fair market value.

Umicore Integrated Annual Report 2020

Statements
The free share part of the expense is valued at the market price of the shares at the grant date. In
2020, shares have been granted to top management resulting in an extra charge of € 2.6 million forcontinuing operations.
The defined contribution plans of the Group in some countries like the USA, Canada, South Africa
and Germany are directly recognized in the income statement under the line “Contribution to defined
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”.

140

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

2019

2020

Capital gains and losses on disposal of financial investments

547

517

Dividend income

133

230

Interest income from financial assets

26

14

TOTAL FOR CONTINUING OPERATIONS

706

761

F11 FINANCE COST – NET
Thousands of Euros

2019

2020

Interest income

4,585

3,749

Interest expenses(45,627)(61,659)

Discounting of non-current provisions(5,942)(3,146)

Foreign exchange gains and losses(31,618)(30,445)

Other financial income

222

295

Other financial expenses(4,858)(12,996)(83,238)(104,202)

TOTAL OF CONTINUING OPERATIONSThe net interest charge in 2020 totaled € 57.9 million, in line with the increase of the average financial
debt as well as fees and costs linked to the issuance of new debt instruments. The net interest charge
contains € 0.8 million interest related to leases as per IFRS 16 and € 5.2 million being the phantom interest
component of the convertible bond. These higher net interest charges were partly offset by lower foreignexchange costs and lower discounting expenses.
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 2020 were booked in Germany and to alesser extent in Belgium.
Foreign exchange results include realized exchange results and the unrealized translation adjustments
on monetary items using the closing rate of the period. In 2020, the forex result is mainly explained by
the cost of forward points in hedging instruments and by the impact from metal fixations. They also

Umicore Integrated Annual Report 2020

Statements

141

F13 INCOME TAXES
Thousands of Euros

2019

2020

Current income tax(113,229)(115,672)

Deferred income tax

16,53756,542TOTAL TAX EXPENSE FOR CONTINUING OPERATIONS(96,692)(59,131)

Income tax expense
Recognized in the income statement

RELATIONSHIP BETWEEN TAX EXPENSE (INCOME) AND
ACCOUNTING PROFIT
Result from operating activities

470,444304,592

Financial result(83,238)(104,202)

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

387,206

200,390

24.81

25.48

(96,076)(51,055)

Expenses not deductible for tax purposes(4,276)(4,383)Tax-exempted revenues

4,797

3,457

Dividends from consolidates companies & Associates(1,596)(267)

Weighted average theoretical tax rate (%)
INCOME TAX CALCULATED AT THE WEIGHTED AVERAGE THEORETICAL TAXRATE FOR CONTINUING OPERATIONSTax effect of :Gains & Losses taxed at a reduced rate-37

Tax incentives and tax holidays

15,75814,563

Tax computed on other basis(1,377)(1,657)

Utilisation of previously unrecognized tax losses

1,443

4,349

Write down (or reverse of previous write down) of DTA(3,817)

6,050

Change in applicable tax rate

3,720

(31)

Other tax credits (excluding R&D tax credits)

585

958

Non recoverable foreign withholding taxes(11,552)(12,003)

Previous years adjustments

(114)

988

Other (including IFRIC 23)(4,187)(20,135)(96,692)(59,129)

TAX EXPENSE AT THE EFFECTIVE TAX RATE FOR THE YEAR

The weighted average theoretical tax rate evolved from 24.8% in 2019 to 25.5% in 2020 for the continuing
operations. Excluding the impact of adjustments, the adjusted effective tax rate for 2020 was 24.2%. This
compares to the 24.7% in 2019.

Umicore Integrated Annual Report 2020

Statements

142

F14 INTANGIBLE ASSETS OTHER THAN GOODWILL
Thousands of Euros

Development expenses capitalized

Concessions, patents, licences, etc.

Software

CO2 emission rights

Gross value

131,273

Accumulated amortisation(83,920)

Net book value at the beginning of previous year
. acquisition through business combinations

Other intangible assets

Total

107,319

140,054

11,106

60,584450,336(37,639)(114,124)-(19,839)(255,522)

47,353

69,68025,930

11,10640,745

194,814

-

-

-

-

8,223

8,223

34,660

1,495

1,115

4,925

16,16758,362At the beginning of previous year

. additions. disposals-(6,483)---(6,483). amortisation charged (included in "Depreciation and impairments")(11,129)(9,878)(9,464)-(5,742)(36,214). impairment losses recognized (included in "Depreciation and impairments")(2,771)

-

(497)

-

-

(3,268)

-

-

-

3,184

-

3,184

282

5

82

(2)

251

619

(14,627)

(90)

9,783

(0)

(150)

(5,085)
214,154. emission rights allowances. translation differences. other movements
AT THE END OF PREVIOUS YEAR

53,76854,73026,94919,21359,494Gross 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 END OF PREVIOUS YEAR

53,76854,73026,94919,21359,494

214,154. acquisition through business combinations

-

82

40

-

(23)

98

13,784

50

5,404

-

24,82144,060. 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 THE 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 FOR CONTINUING OPERATIONS

38,517

34,707

26,694

15,89875,081

190,897

The line “Additions” for € 44.1 million mainly contains capitalized expenses in internally generated
developments for € 32.4 million (see note F9), of which € 18.6 million are still shown under the
category “Other intangible assets” as “Intangible assets under construction”. The “Additions” also containcapitalized expenses in new information systems for around € 10.3 million.
The acquisitions through business combination are related to the subsequent opening balance sheet
adjustments in Finland (see note F8). Impairment losses have been taken mainly in Catalysis and are
related to selected capitalized development costs and license agreements.

The line ‘other movements’ mainly includes the transfer between intangible assets in progress (included
under “other intangible assets”) and the other categories of intangible assets and to a lesser extent
transfer from tangible assets.
The other intangible assets category contain intangible assets in progress for € 53.9 million (mainly
capitalized development costs and in less extent the information systems) but also some businessportfolio and customers’ list acquired during the business combinations for € 20.6 million.
There are no pledges on, or restrictions to, the title on intangible assets, other than disclosed in note F35.

Umicore Integrated Annual Report 2020

Statements
F15 GOODWILL
Thousands of Euros

31/12/2019

31/12/2020

Gross value

158,457

169,915

Accumulated impairment losses(15,966)(13,210)NET BOOK VALUE AT THE END OF PREVIOUS YEAR

142,491

156,705. acquisition through business combinations

14,5491,499. impairment losses (included in "Depreciation andimpairment results")(1,422)-. translation differences

1,087(2,214)

AT THE END OF THE YEAR

156,705

155,990

Gross value

169,915

165,627

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

NET BOOK VALUE FOR CONTINUING OPERATIONS

156,705

155,990

At the end of the previous year

143

prevailing 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 unless a normalization is consideredappropriate. The 2020 goodwill impairment testing indicated sufficient headroom in the respective cash
generating units and hence no goodwill impairments were recognized. The 2020 impairment testing used
an average tax rate of 25.0% (unchanged versus 2019) and a weighted average cost of capital post-tax
of 7% which was reviewed down from the 8.5% used in 2019 and prior years to reflect the Group’s
lowered weighted cost of funding driven a.o. by the decrease in market interest rates in recent years. A
uniform WACC rate was applied across cash generating units with unit-specific risk factors considered tobe reflected in the underlying cash flow projections. Terminal values were determined on the basis of aperpetual growth rate of on average 2% (same as in 2019). Inflation rates were based on guidance fromnational and international institutes such as the NBB or ECB.

This table includes goodwill related to fully consolidated companies only. Goodwill relating to companies
accounted for by the equity method is detailed in note F17.
The change of the period relates mainly to the final adjustment of the goodwill in Finland following thefinalization of the opening balance sheet exercise (see note F8).
The goodwill accounted in each of the primary segments is as follows:

Thousands of Euros

Catalysis

Energy &SurfaceTechnologies

RecyclingTotal

31/12/2019

50,03788,35718,311

156,705

31/12/2020

49,99987,737

18,254

155,990

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 typicallyUmicore Integrated Annual Report 2020

Statements

144

F16 PROPERTY, PLANT AND EQUIPMENT
Thousands of Euros

Land and buildings

Plant, machineryand equipment

Furniture and vehicles

Other tangible assets

Construction in progress
and advance payments

Total

At the beginning of previous year without leasing
Gross value

973,873

2,090,262

226,496

14,678

388,791

3,694,100

Accumulated depreciation(491,424)(1,431,137)(158,858)(13,715)-(2,095,133)

NET BOOK VALUE AT THE BEGINNING OF PREVIOUS YEAR WITHOUT LEASING

482,450

659,125

67,638964

388,791

1,598,967. acquisition through business combinations

31,63875,142517-

20,426

127,724. additions

16,39336,1649,535

69467,326

529,487. disposals(1,509)(2,772)

(419)

(10)

(2,369)(7,079). depreciations (included in "Depreciation and impairments")(37,030)(135,690)(18,086)(228)-(191,035). net impairment losses recognized (included in "Depreciation and impairments")(2,454)(16,169)

(289)

-

-

(18,911). translation differences

1,642

944

71

12

(1,844)825

168,212

231,710

16,534314(410,962)

5,809

659,342

848,457

75,5001,120

461,368

2,045,788. other movements
AT THE END OF PREVIOUS YEAR WITHOUT LEASING
At the beginning of the 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 THE 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)

AT THE END OF THE FINANCIAL YEAR WITHOUT LEASING

695,767

820,668

82,403903

508,033

2,107,775

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 FOR CONTINUING OPERATIONS WITHOUT LEASING

695,767

820,668

82,403903

508,033

2,107,775

Umicore Integrated Annual Report 2020

Statements

145

Land and buildings

Plant, machineryand equipment

Furniture and vehicles

Other tangible assets

Construction in progress
and advance payments

Total

3,300

43

31

-

-

3,374

Accumulated depreciation

(399)

(20)

(31)

-

-

(450)

NET BOOK VALUE AT THE BEGINNING OF PREVIOUS YEAR FOR LEASING

2,901

23

-

-

-

2,924

. change in accounting policies

25,78877

11,396--37,262. acquisition through business combinations

2,681

-

-

500

-

3,181

. additions

15,466

21

6,780

-

-

22,266. depreciations (included in "Depreciation and impairments")(11,063)(44)(5,722)--(16,829)

72

0

8

-

-

80

35,84577

12,462500-

48,884Gross value

47,341

135

18,175500-

66,152

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

NET BOOK VALUE AT THE BEGINNING OF THE YEAR FOR LEASING

48,884

Thousands of Euros
Gross value. translation differences
AT THE END OF PREVIOUS YEAR FOR LEASING
Leasing at begining of the year

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 FOR LEASING

40,865342

14,176502-

55,886. transfer
AT THE END OF THE FINANCIAL YEAR FOR LEASING

Tangible asset including leasing
Gross value

1,309,486

2,479,718

285,456

24,159508,033

4,606,851

Accumulated amortisation(572,854)(1,658,707)(188,876)(22,754)-(2,443,190)

NET BOOK VALUE FOR CONTINUING OPERATIONS INCLUDING LEASING

736,633

821,010

96,5801,405

508,033

2,163,661

The reduction in capital expenditures (line “Additions”) compared to 2019 reflects the decision taken
shortly after the start of the COVID-19 outbreak to postpone selected investment projects with the
exception of safety and license to operate investments, awaiting more clarity on market outlook. Taking
into account the continued investment in Rechargeable Battery Materials’ greenfield plant in Poland,
Energy & Surface Technologies accounted for close to two thirds of the Group’s capex. Spending for thisstrategic project will continue into 2021.
The acquisitions through business combination are related to the subsequent adjustments of the opening
balance sheet of the acquired cobalt refining and cathode precursor activities at Kokkola at the end of
December 2019 (Finland) (see note F8).

The changes in accounting policies in 2019 are related to the introduction of IFRS 16.
Impairments on property, plant and equipment are mainly related to the restructuring initiatives in
Cobalt & Specialty Materials and in Catalysis the consolidation of the North American automotive
catalyst production.
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 Integrated Annual Report 2020

Statements

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:

Country

Measurement
currency

146

Thousands of Euros

31/12/2019

31/12/2020

Assets

231,747

214,719

Liabilities

108,620

101,894

Percentage

Percentage

Turnover251,313

195,889

2019

2020

Net result

8,705(5,332)For continuing operations
Associates
IEQSA

Peru

PEN

40.00

40.00

Ganzhou Yi Hao Umicore Industries

China

CNY

40.00

40.00

Element Six Abrasives

UnitedKingdom

USD

40.22

40.22

Jiangmen Chancsun Umicore Industry Co.,LTD

China

CNY

40.00

40.00

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

F18 FINANCIAL ASSETS AT FAIR VALUE THROUGH OCI AND LOANSGRANTEDThe elements recognized in Other Comprehensive Income for investments accounted for using the equity
method are mainly related to employee benefits reserves and translation reserves.
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

Thousands of Euros

104,653

45,989150,642. profit for the year

(5,332)-(5,332). dividends(1,796)-(1,796). change in other reserves

1,536

-

1,536

. translation differences(4,379)(833)(5,210)

AT THE END OF THE YEAR FOR
CONTINUING OPERATIONS

94,68345,156

139,839

Thousands of Euros

Financial assets at FV
through OCI

Loans granted

8,028

2,627

Non-current financial assets
AT THE BEGINNING OF PREVIOUS YEAR
. increase

2,375

126

. decrease

-

(114)

. translation differences

3

72. fair value recognized in equity(9)-. other movements

500

(520)

10,897

2,192

1,633

753

AT THE END OF PREVIOUS YEAR
. 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

. increase-92. decrease-(1). translation differences

-

(12)

-

80

. other movements
AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONSCURRENT FINANCIAL ASSETSAT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONS

Umicore Integrated Annual Report 2020

Statements
The increase and fair value recognized in equity of the financial assets at fair value through OCI are related
to movements in non-consolidated entities. The new loans granted are related to convertible loans to
non-consolidated entities.

F19 INVENTORIES

147

There are no pledges on, or restrictions to, the title on inventories.

F20 TRADE AND OTHER RECEIVABLES
Thousands of Euros

Notes

31/12/2019

31/12/2020

Cash guarantees and deposits

8,893

8,370

Other receivables maturing > 1 year

1,972

2,574

Assets employee benefits

1,173

820

12,038

11,764

1,171,835

1,366,686

Non current
Thousands of Euros

31/12/2019

31/12/2020

Analysis of inventories
Base products - gross value

2,469,632

2,706,918.Permanently tied up metal inventories (not hedged)

862,215775,213.Commercially available metal inventories (hedged) (*)

1,176,095

1,477,096

431,322454,609

Trade receivables (at cost)

87,030102,163

Trade receivables (write down)(22,983)(22,319)

Write-downs(101,960)(105,715)

Other receivables (at cost)

180,336

177,008

Advances paid

6,173

7,222

Other receivables (write down)

(207)

(207)

Contracts in progress

1,454

7,503

Interest receivable

156

495

2,462,330

2,718,092.Other base products inventories (not hedged)
Consumables - gross value

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

Inventories have increased by € 255.8 million compared with December 2019. This increase is mainly
due to higher metal prices impacting the value of the commercially available metal inventories. The
decrease of the permanently tied up metal inventories is predominantly linked to the rightsizing of thecobalt permanently tied up metal inventories linked to the restructuring initiatives in Cobalt & Specialty
Materials. This rightsizing brought a € 34 million impairment charge classified under Adjustments.

TOTAL FOR CONTINUING OPERATIONSCurrent

Fair value receivable financial instruments held
for cash-flow hedging

F33

19,69945,091

Fair value receivable - financial instruments
related to FV hedging

F33

47,49523,442

Deferred charges and accrued income

37,327

86,973TOTAL FOR CONTINUING OPERATIONS

1,433,658

1,677,167

Compared to 31 December 2019, trade receivables substantially increased driven mainly by a substantial
increase in Catalysis, fueled by higher metal prices.

The total gross book value of Umicore’s permanently tied-up metal inventories at 31 December 2020
compares to a value of € 3,008 million when applying the 31 December market prices (€ 2,135 million at
end December 2019).
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
2020 would have given rise to a non-cash impairment charge of € 110.5 million for the Group.
The change in inventory recognized in Raw Materials and Consumables in the income statements is apositive amount of € 378 million (representing the cash movements on inventory balances).

Umicore Integrated Annual Report 2020

Statements
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

1,131,666

928,369

160,856

22,261

5,549

14,632Other receivables - at cost

180,336

179,925

595

(340)

-

157

Loss allowance

12,794

5,431

901

17

1,497

4,948

Expected loss rate

0.98%

0.49%

0.56%

0.08%

26.98%

33.46%

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

1,328,476

1,161,303

137,088

21,5694,384

Other receivables - at cost

177,007

176,020

(0)

-

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%

5.21%

73.75%

4,131

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

Tradereceivables (write­
down)

Other
receivables (write­
down)

Total

(22,577)(247)(22,824). Impairment losses recognized in P&L(9,373)-(9,373). Reversal of impairment losses

9,705

39

9,744

. Impairment written off against asset
carrying amount. Other movements. Translation differences

83

-

83

(850)

(0)

(850)

30

1

31

AT THE END OF PREVIOUS YEAR

(22,983)(207)(23,190)

AT THE BEGINNING OF THE FINANCIAL YEAR

(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

48

-

48

. Other movements

(408)

(346)

(755)

. Translation differences

639

5

644

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

AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONS148

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 2020, two credit insurance policies with two different insurers were in place. At closing,€ 355 million of the group's outstanding invoices were covered by a policy where indemniﬁcation in caseof non-payment amounts to 95% with an indemniﬁcation cap set at regional or country level. The otherpolicy covered € 272 million of trade invoices with a global annual deductible of € 5 million, a maximum
indemnity per year of € 70 million and an indemnification in case of non-payment of 90%. The Groupalso managed credit exposure by selling invoices to financial institutions without recourse (and hence
derecognized) (€ 301 million end of 2020 compared to € 213 million end of 2019), partly covered by theabove credit insurance policies.
Specifically in China, Umicore reduces credit risk by discounting bank acceptance drafts it receives fromits customers without recourse (and hence derecognized) (€ 245 million end of year 2020 compared to€ 185 million end of 2019).
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 Integrated Annual Report 2020

Statements
F21 TAX ASSETS AND LIABILITIESAssetsThousands of Euros

Thousands of Euros

31/12/2019

31/12/2020

45,44739,553

Tax assets and liabilities
Income tax receivables
Deferred tax assets

168,927

221,938

Income tax payable(131,483)(160,734)

Deferred tax liabilities(11,461)(22,846)

AssetsThousands of Euros
At the end of preceding
financial year
Change inaccounting policies
Deferred tax recognizedin the P&L
Deferred tax recognizedin equity

2019
132,855(39)
15,20721,502

Liabilities
2020
168,927
59,688(12,208)2019(6,225)
1,330
7,276

(11,461)(3,146)
3,632

2019
126,630(39)
16,537
28,778Intangible assets
Goodwill on fully
consolidated companies(17,894)(11,043)(1,482)

11,101

11,554

11,506(33,516)(29,644)(21,962)(18,138)Long term receivables

1,087

1,371

(31)

(181)

1,056

1,190

Inventories

72,552

41,534(37,403)(33,159)

35,149

8,375

2020

Trade andother receivables

8,424

8,212

(11,930)(25,600)(3,506)(17,388)

157,466

Group
Shareholder's equity--(4,032)(6,148)(4,032)(6,148)Long Term Financial Debt
and other payable

9,109

11,688(5,172)(18,023)

3,937(6,335)56,542

Provisions
Employee Benefits

81,392

89,764(8,245)(8,267)

73,147

81,497(8,576)

Provisions
for Environment

12,697

26,150

(384)

(378)

12,31325,772

9,480

12,968

(463)

(583)

9,017

12,385

539

40

(344)

(1,080)195(1,040)

2,323

1,969

-

-

2,323

1,969

-

(14,972)(359)(14,972)

(359)

(152)

218

(10)

(5,981)

Current Financial Debt

(1,201)

11,722

1,201(11,722)

-

-

461

8

81

(8)

542

-

157,466

22,144(514)-(22,846)

16,412(561)(6,199)(11,461)

2020

(514)

-

221,938

2019

(561)

142

168,9272020-

Translation adjustments

AT THE END OF
FINANCIAL YEAR FOR
CONTINUINGOPERATIONS

2019

-

Provisions for otherliabilities and charges

Other movements

2020

Deferred tax in respectof each type of
temporary difference

Acquisitions throughbusiness combination
Transfer

Net

2019

Property, plantand equipment

Net
2020

Liabilities

149

199,092

Current Provisions
for Environment
Current Provisions for
Other Liabilities & Charges

9,079

9,952

(8)

(8)

9,071

9,944

Trade and other payables

36,431

67,076(5,262)(1,309)31,16965,767TOTAL DEFERRED TAX
DUE TO TEMPORARY
DIFFERENCES

271,079

304,374(125,245)(135,937)

145,834

168,437

Tax losses tocarry forward

56,59870,257--56,59870,257

Investments deductions

1,156

867

-

-

1,156

867

Other

5,002

3,389

-

-

5,002

3,389

Deferred tax assets
not recognized(51,124)(43,858)--(51,124)(43,858)

TOTAL TAXASSETS/LIABILITIES

282,711

335,029(125,245)(135,937)

157,466

199,092

Compensation of assets
and liabilities withinsame entity(113,784)(113,091)

113,784

113,091-

NET AMOUNT

168,927

221,938(11,461)(22,846)

157,466

199,092

Umicore Integrated Annual Report 2020

Statements
Thousands of Euros

2019

2020

2019

2020

Base

Base

Tax

Tax

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

F22 NET CASH AND CASH EQUIVALENTS
Thousands of Euros

187,883

158,635

51,12443,858The main movements in deferred tax recognized directly in the other comprehensive income are deferredtaxes generated by temporary differences included within the lines “Trade and other receivables”(negative by € 6.1 million), “Provisions for employee beneﬁts” (positive by € 8.0 million), long-term
financial debt (negative by 12.6 million) and “Trade and other payables” (positive by € 2.8 million).
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 € 43.9 million mainly arise from tax losses (€ 39.6 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.

31/12/2019

31/12/2020

25,524373,904

Cash and cash equivalents
Short-term investments : bank term deposits
Short-term investments : term deposits (other)

The changes of the period in temporary differences are charged to the income statement except thosearising from events that were recognized directly in the other comprehensive income.

150

Cash-in-hands and bank current accounts
TOTAL CASH AND CASH EQUIVALENTS
Bank overdrafts
NET CASH AS IN CASH FLOW STATEMENT FOR CONTINUING OPERATIONS

7

5

246,192

636,397271,724

1,010,307

32,493

8,678

239,2311,001,629

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.
The increase in term deposit amount mainly stems from the cash proceeds of the convertible bondissuance (€ 500 million nominal).

Group current income tax payable at December 2020 amounting € 160,7 million (2019 : € 131,5 million)
include uncertain tax positions of € 114.9 million (€ 91.4 million in 2019).

Umicore Integrated Annual Report 2020

Statements

151

F23 CURRENCY TRANSLATION DIFFERENCES AND OTHER RESERVES
The detail of the Group’s share in currency translation differences and other reserves is as follows:

Conversion
rightsrecognized inequityFinancialassets at FV
through OCI
reserves

Cash flow
hedge
reserves Commodities

Cash flow
hedge
reserves Currencies

Cash flow
hedge
reserves - IRS

Deferred taxes
directly
recognized in
OCI

Changes inpost
employment
benefits,
arising fromchanges in
actuarialassumptions

Balance at the beginning of previous year

-

1,150

(3,925)

3,411

(586)

58,663(226,884)

31,600(91,073)(227,644)

Remeasurements recognized in other comprehensive income

-

(129)

(28,728)

1,937

(101)

28,587(70,605)

8,211-(60,828)

Remeasurements derecognized out of other comprehensive income--(1,212)

174

-

(145)

-

-

-

(1,183)

Transfer from/to retained earnings

-

-

-

-

-

-

-

(2,540)-(2,540)

Other movements

-

120

-

-

-

-

-

-

-

120

Exchange differences

-

-

-

(29)

-

(11)

(539)

-

8,200

7,621

BALANCE AT THE END OF PREVIOUS YEAR

-

1,141

(33,865)

5,493

(687)

87,094(298,028)

37,271(82,873)(284,454)

Thousands of Euros

Balance at the beginning of the year

Share-based
payment
reserves

Currencytranslationdifferences

Total

-

1,141

(33,865)

5,493

(687)

87,094(298,028)

37,271(82,873)(284,454)

50,324(4,198)(20,951)

7,972

(84)

(513)

(27,632)

10,108-15,026

Remeasurements 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)

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

BALANCE AT THE END OF THE YEAR

The net losses recognized in the OCI regarding cash ﬂow hedges (€ 13.1 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 (€ 29.8 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 € 54.8 million, recognized in the income statement. This amount includes the mentioned net losses derecognized from OCI (€ 29.8 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 (€ 25.0 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 € -27.6 million. The 2020 shares and stock option plans have
led to a share-based payment reserve increase of € 10.1 million (refer to note F10 on employee beneﬁts). € 2.7 million, linked to exercised options and free shares plans, have been transferred to retained earnings.
The conversion rights embedded in the € 500 million convertible bond issued on 23 June 2020 were valued at € 50.3 million net of transaction costs and have been recognized in equity (see note F2.17).

Umicore Integrated Annual Report 2020

Statements

Net financial debt at 31 December 2020 stood at € 1,414.0 million, slightly down compared with
€ 1,443,4 million at the start of the year.

F24 FINANCIAL DEBT
Thousands of Euros

Bank loans

Lease liability

Other loans

Total

Non-current
AT THE BEGINNING OF PREVIOUS YEAR

3,843

708,846. Change in accounting policies-

37,262-37,262. Acquisition through business combinations

-

3,181

-

705,004

3,181

400,579

22,266

6422,851. Decrease-(16,536)(291)(16,827). Translation differences

37

89

-

126

1

(4,353)

46,262

3,555

1,151,083. Increase. Transfers(4,354)

AT THE END OF PREVIOUS YEAR

1,101,266. Increase

125,000

27,657494,360

647,017. Decrease-(19,801)(304)(20,105)(146)(1,251)5(1,392)(21,120)-(4)(21,124)--(50,324)(50,324)

1,205,000

52,865447,289

1,705,154. Translation differences. Transfers. Conversion rights recognized in equity
AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONSCurrent portion of long-term financial debts
At the end of the preceding financial year
. Increase / decrease. Translation differences. Transfers
AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONS

Thousands of Euros

Short termbank loans

3,545

-

154

3,700

(12,151)-

0(12,151)

(526)

-

(0)

(526)

30,922-

4

30,926

21,790-158

21,948Bank
overdrafts

Short termloan :
commercial
paper

Other loans

Total

Current
AT THE END OF THE PRECEDING
FINANCIAL YEAR

244,933

32,493282,936-560,363. Increase / decrease

346,873(22,392)(148,654)

914

176,742. Transfers(9,802)---(9,802). Translation differences(27,738)(1,424)-(910)(30,072)554,266

8,678

134,2824

697,230

AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONS

152

On June 15, 2020, Umicore and the European Investment Bank (“EIB”) concluded a € 125 million loan
agreement (fair value of €126 million). The proceeds of the loan, which has a maturity of eight
years, will finance part of Umicore’s investment in cathode materials plant in Nysa, Poland. Oncecompleted, this greenfield plant will supply the European operations of Umicore’s global battery cell andautomotive customers.
On June 16, 2020, Umicore issued senior unsecured convertible bonds (the “Bonds”) with a contractual
maturity of 5 years, under Umicore’s authorized capital, for an aggregate principal amount of€ 500 million. The net proceeds will be used for general corporate purposes and to fund Umicore’s
strategic developments in the areas of clean mobility and materials recycling. Unless previously
converted, redeemed or repurchased and cancelled, the Bonds will be redeemed at 100% of theirprincipal amount on June 23, 2025. At inception, Umicore determined the bonds met the IFRS definition of
a compound financial instrument. At the date of issuance, the equity portion of the Bonds representing
the option to convert the instrument into ordinary shares is valued € 50.3 million (net of transaction costs).
The transaction costs that relate to the issuance of the Bonds were allocated to the liability and equity
components of the instrument in proportion to the allocation of the proceeds.
The fair value of the financial liability component of the convertible bond as of December 31,2020
amounted to€ 444.1 million.
On October 2, 2020, Umicore received confirmation from Banque de France, as foreseen by art. D.213-2
of “Code monétaire et financier” of the French law, that the conditions as described in the financial
documentation of its NEU commercial paper (no longer than 1 year maturity) and NEU medium term note(maximum 3 years maturity), for a maximum amount of € 600 million each, fulfill the requirements of
the law.
On December 31, 2020, an amount of € 45 million was outstanding on the NEU CP program and no amount
was outstanding on the NEU MTN program.
An amount of €89,75 million was outstanding on the Belgian Commercial Paper programme (out of€ 600 million available under the program).
The financial debt includes the US private debt placements issued in 2019 (€ 390 million; fair value of€ 413.8 million) and in 2017 (€ 360 million; fair value € 394.0 million) and also the Schuldschein issued
in 2017 ( € 330 million; fair value € 342.2 million).

Umicore Integrated Annual Report 2020

Statements
On 31 December 2020, there were no outstanding advances under the € 300 million Syndicated Bank
Credit Facility maturing in October 2022 and no outstanding advances 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 thosecovenants in 2020 or in previous years.
The long-term debts mainly include debt instruments in EUR.
The average interest rate on the average gross debt amounted to 1.91% for full year 2020 (2.11% for fullyear 2019).

Thousands of Euros

Type ofInterest

Lease Liabilities-

40,47812,38752,865

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

-

444,100-

444,100

719,177

774,768

930,3872,424,332

TOTAL

Thousands of Euros

EUR

Other currencies

Total

Bank loans

1,205,000

21,7901,226,790

Other loans

447,4452

447,447

1,652,445

21,792

1,674,237

The net gearing ratio end of 2020 of 35.0% (35.2% in 2019) and the net financial debt over adjusted
EBITDA ratio of 1.76x (compared to 1.92x end of 2019) position the Group well within its targeted capital
structure limits.
Due within 1
year

Due between Due beyond 5
1 and 5 years
years

Total

Gross Financial debt of previous year
Lease Liabilities-

38,087

8,174

46,262Credit Institutions

Fixed/Floating

281,126

24,820-305,946

Commercial Papers

Floating

282,936--

282,936

Schuldschein

Fixed/Floating-

287,000

43,000330,000

US Private Placement

Fixed

-

-

750,000

750,000

564,062

349,907

801,174

1,715,144

TOTAL

Total

Credit Institutions

Analysis of long term debts by currencies(including current portion)

Type ofInterest

Due between Due beyond 5
1 and 5 years
years

Gross Financial debt of the year

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.

Thousands of Euros

Due within 1
year

153

NON-CURRENT FINANCIAL DEBTS (INCLUDING
CURRENT PORTION)

Thousands of Euros
Non current financial debt
Current portion of non current financial debt
Current financial debt
Cash and cash equivalents
NET FINANCIAL DEBT

2019

2020

1,151,083

1,705,154

3,700

21,948560,363

697,230(271,724)(1,010,307)

1,443,422

1,414,024

Gross outstanding debt
Short term bank loans

23.8%Long term bank loans

49.7%

Commercial paper

5.5%Bank overdrafts

0.4%

Lease liability

2.2%

Convertible Bond

18.3%

Other bank facilities

0.1%

Umicore Integrated Annual Report 2020

Statements
Millions of Euros

2019

2020

Net financial debt

1,443.4

1,414.0

Equity2,660.5

2,621.9

Total

4,103.9

4,035.9

35.2

35.0

31/12/2019

31/12/2020

Gearing ratio (%)

154

F25 TRADE DEBT AND OTHER PAYABLES
Thousands of Euros

Notes

Non-current
Long-term trade payables

2,579

-

Other long-term debts

5,520

5,682

Investment grants and deferred income
from grants

16,021

17,823TOTAL FOR CONTINUING OPERATIONS

24,12023,505Current
Trade payables

1,466,140

1,896,099

Advances received on contracts in progress

15,44832,180

Tax payable (other than income tax)

26,19038,317

Payroll and related charges

125,252

135,835

Other amounts payable

56,39939,733

Dividends payable

11,657

11,618

Accrued interest payable

7,856

9,109

48,82957,957

Fair value payable financial instrument held for
cash flow hedging

F33

Fair value payable - financial instruments related
to FV hedging

F33

18,67038,296

Accrued charges and deferred income

139,907

159,784

TOTAL FOR CONTINUING OPERATIONS

1,916,348

2,418,928

Compared to 31 December 2019, trade payables increased, driven mainly by a substantial increase in
Catalysis, fueled by higher metal prices. 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 bysuppliers in view of their transferrability, their use as financing collateral or their ability to be discounted.
End of 2020, Umicore issued € 280 million of bank acceptance drafts in China (compared to € 196 million
end of 2019). Trade payables end of 2020 include contracted metals to be repurchased for an amount of€ 230 million (compared to € 206 million end of 2019). The tax payables (other than income tax) mainly
include VAT payables.

Umicore Integrated Annual Report 2020

Statements

155

F26 LIQUIDITY OF THE FINANCIAL LIABILITIESPREVIOUS 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

153,186

192,344

218,525

349,908

801,174

1,715,137

CURRENT

153,186

192,344

218,525--564,055

Short term bank loans

130,764

56,37057,799--244,933

Bank overdrafts

21,188-11,305--32,493-

134,155

148,781--282,936

Short-term loan: commercial paper
Other loans

(7)

-

0

-

-

(7)

Current portion of long-term bank loans

1,229

1,793

523

-

-

3,545

Current portion of other long-term loans

13

26

116

-

-

154

NON-CURRENT

-

-

-

349,908

801,174

1,151,082

Bank loans

-

-

-

308,267

793,000

1,101,267

Lease liability

-

-

-

38,087

8,174

46,261Other loans

-

-

-

3,554

-

3,555

TRADE AND OTHER PAYABLES

1,343,059

323,292

231,717

29,51012,891

1,940,469

CURRENT

1,343,059

323,292

231,717

18,281-

1,916,349

1,113,438

216,335

136,367--

1,466,140

Advances received on contracts in progress

5,092

8,720

1,636

-

-

15,448

Tax payable (other than income tax )22,491

3,700

(0)

-

-

26,190

Payroll and related charges

43,063

26,40955,780--125,252

Other amounts payable

25,106

16,656

14,638--56,400

Dividends payable

11,657----

11,657

Accrued interest payable, third parties

6,165

1,390

300

-

-

7,856

399

9,372

20,77818,281-

48,829Trade payables

Fair value payable financial instrument held for
cash flow hedging
Fair value payable - financial instruments related
to FV hedging

8,198

8,252

2,219

-

-

18,670107,450

32,457

0--

139,907

NON-CURRENT

-

-

-

11,22912,891

24,120Long-term trade payables

-

-

-

-

2,579

2,579

Other long-term debts

-

-

-

1,192

4,328

5,520

Investment grants and deferred income from grants

-

-

-

10,037

5,984

16,021

Accrued charges and deferred income

Umicore Integrated Annual Report 2020

Statements

156

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

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

28,631

19,527-

57,953

Non-current

Trade payables

Fair value payable financial instrument held for
cash flow hedging

471

9,324

Fair value payable - financial instruments related
to FV hedging

16,11917,902

3,890

385

-

38,296

Accrued charges and deferred income

120,413

19,943

19,428--

159,784

Non-current

-

-

-

12,096

11,40923,505

Other long-term debts

-

-

-

1,182

4,500

5,682

Investment grants and deferred income from grants

-

-

-

10,914

6,909

17,823

Umicore Integrated Annual Report 2020

Statements

a decrease in discount rates on the pension plans. A reconciliation with the note F23 and the Statementof Comprehensive income is provided in the tables below.

F27 PROVISIONS FOR EMPLOYEE BENEFITSThe 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,
pensions andsimilar

Postemployment
benefits otherTermination
benefits early
retirement &similar

Other longterm
employeebenefits

Total

347,160

3,806

26,54615,137

392,650. Increase (included in "Payroll andrelated benefits")

27,668

(106)

6,157

1,335

35,054. Reversal (included in "Payroll andrelated benefits")

(63)

-

-

(7)

(70)

(25,943)(170)(4,985)(723)(31,820). Use (included in "Payroll andrelated benefits"). Interest and discount rate impacts(included in "Finance cost - Net")

3,175

9

23

110

3,317

. Translation differences

(72)

(282)

(444)

(24)

(822)

. Transfers

747

(467)

(210)

(26)

44

28,162

(159)

(0)

0

28,004

380,834

2,633

27,08715,802426,356. recognized in othercomprehensive income
AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONS

Thousands of Euros

31/12/2019

Movements 2020

Belgium

67,47828,09595,573Germany

297,653

3,090

300,743

SUBTOTAL

365,131

31,185396,316

Other entities

27,5192,522

30,040392,650

33,707426,356

TOTAL FOR CONTINUING OPERATIONS

157

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

31/12/2020

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 mainly Belgian pre-retirement plans and some severance pay
schemes in Korea. 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 OCI originates mainly from

Umicore Integrated Annual Report 2020

Statements
BELGIUM

Characteristics of the Defined Benefit plansUmicore 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
obligation of € 314.0 million and assets for € 218.5 million. They foresee in lump sum or monthly
payments upon retirement or pre-retirement and beneﬁts in case of reaching a number of years ofservice or in case of death or disability prior to retirement.
The net provisions for pension of € 95.5 million can be broken down in post-employment defined
benefit plans (€ 67.2 million of which € 172.9 million is the obligation and € 105.7 million relates
to plan assets), termination benefits plan (€ 6.3 million of obligation not funded), jubilee premium(€ 3.5 million, not funded) and post-employment defined contributions plans and bonus savingplans with guaranteed return and therefor treated as Defined Benefit plans (€ 18.6 million of which€ 131.3 million is the obligation and € 112.7 million relates to plan assets).
Funding The post-employment plans are externally funded through either insurance companies
or a self-administrated institution for occupational retirement provision (“IORP”). For the IORP, thenecessary governance processes for risk management are in place. One of the risk measures is toperform on a regular 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 statementof investment principles and funding policy are derived from this. The purpose is to have awell-diversiﬁed asset allocation to control the risk.
Fair values of plan assets The fair values of the equity and debt instruments are determined basedon quoted market prices in active markets (level 1 fair value classification). The plans hold no direct
positions in Umicore shares or bonds, nor do they own any property used by an Umicore entity.
Investments are well diversified so that the failure of any single investment would not have amaterial impact on the overall level of assets.

GERMANY

Characteristics of the Defined Benefit plansThe post-employment beneﬁts are mainly unfundedpension plans of deﬁned beneﬁt type providing retirement, disability and death beneﬁts. All beneﬁtplans are based on ﬁnal or ﬁnal average pay excluding the deferred compensation plans. The
beneﬁts of the deferred compensation plan are based on annual converted salary and provide aguaranteed 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 € 308.3 million and assets for € 7.6 million.
The net provisions for pension of € 300.7 million mainly includes the Degussa pension defined
benefit plans, including the contribution plan where the inflation and interest rate adjustments of thebenefits are guaranteed (€ 224.1 million), the closed and open compensation plans (€ 62.0 million),a jubilee premium plan (€ 7.0 million) and other termination benefits (€ 7.8 million).
Funding As mentioned above, the post-employment benefits are mainly unfunded plans. A minor
part is 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.

158● 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 willlead to 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 € 5.1 million for PKD and€ 0.9 million for RUK at the end of 2020).
● 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

Umicore Integrated Annual Report 2020

Statements
result on contributions until retirement age. If the organization does guarantee such a result, the rates
3.25/3.75% still apply. Because of this minimum guaranteed return, the employer is exposed to afinancial 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 through an IORP. The related defined benefit obligations havebeen 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€ 131.3 million as at the end of December 2020 and related plan assets to € 112.7 million.
Thousands of Euros

2019

2020

Benefit obligation at beginning of the year

549,052

651,685

Current service cost

32,95834,591

Interest cost

9,908

6,246

159

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.

Change in benefit obligation

Plan Participants' Contributions

946

905

Remeasurements - changes in demographic assumptions

1,133

1,556

Remeasurements - changes in financial assumptions

81,76929,185Remeasurements - experience adjustments

3,032

2,942

Benefits paid from plan/company(24,272)(26,873)

Expenses paid

(3,773)(1,819)Plan combinations

74

157

Exchange rate changes

858(1,353)651,685

697,222

2019

2020

BENEFIT OBLIGATION AT END OF THE YEAR

Thousands of Euros
Change in plan assets
Fair value of plan assets at the beginning of the year

216,101

259,952

Expected return on plan assets

3,740

2,349

Remeasurements on plan assets

17,1385,398

Employer contributions

49,291

32,473

Member contributions

946

905

Benefits paid from plan/company(24,272)(26,873)

Expenses paid

(3,823)(1,870)

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

87

(76)

Exchange rate changes

744

(568)

259,952

271,690

FAIR VALUE OF PLAN ASSETS AT THE END OF THE YEAR

Umicore Integrated Annual Report 2020

Statements
Thousands of Euros

2019

2020

Defined benefit obligations

651,685

697,222

Fair value of plan assets

259,952

271,690

FUNDED STATUS

391,733

425,532

NET LIABILITY (ASSET)

391,733

425,532

32,95834,591

Amount recognized in the balance sheet

Components of pension costs

The interest cost and return on plan assets as well as the discount rate impact on the nonpostemployment 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 OCI originate mainly from a change in discount rates on thepension plans and differences between the expected and actual return on plan assets.

Amounts recognized in profit and loss statement
Current service cost
Interest cost

9,908

6,246

Interest income on plan assets(3,740)(2,349)Remeasurement of Other Long Term Benefits(1,890)

277

51

51

37,28738,816

Administrative expenses and taxes
TOTAL PENSION COST RECOGNIZED IN P&L ACCOUNT
Amounts recognized in other comprehensive income
Cumulative remeasurements at opening

199,949

270,082

Remeasurements of the year

70,88228,004(772)

37

Other movements

-

1,775

Exchange differences

23

(69)

270,082

299,829

Minorities

TOTAL RECOGNIZED IN THE OCI AT SUBSIDIARIES
Remeasurements at associates and joint ventures

27,94425,202TOTAL RECOGNIZED IN THE OCI

298,026

325,030

Remeasurements recognised in Other comprehensive income as per Note
F23 (w/o Minorities)(70,605)(27,632)

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

(539)

2,403

Reameasurements related to Minorities (including ctd's on Minorities )

(776)

32

(71,921)(25,198)539(2,403)TOTAL REMEASUREMENT SHOWN IN OCI.Currency translation differences as per Note F23 (w/o Minorities).Currency translation differences related to Minorities

45.Remeasurements related to equity companies

496

(409)

TOTAL REMEASUREMENTS SHOWN IN NOTE F27(70,882)(28,004)

2019

2020

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

Discount rate (%)

1.85

0.95

Rate of compensation increase (%)

2.85

2.60

Rate of price inflation (%)

1.78

1.78

Rate of pension increase (%)

1.36

1.30

PRINCIPAL ACTUARIAL ASSUMPTIONS
Weighted average assumptions to determine benefit obligations atyear end

Weighted average assumptions used to determine net cost

2020
Fair value of allplan assets

Fair Value of plan
assets with quoted
market priceCash and cash equivalents

25,62925,624Equity instruments

37,21537,204

Debt instruments

104,902104,786

Plan assets

Real estate

6,083

6,078

Assets held by insurance company

92,047

79,106Other
TOTAL PLAN ASSETS

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

1,070

1,433

Effect of changes in financial assumptions

80,772

29,124

Effect of experience adjustments

5,859

2,677

(Return) on plan assets (excluding interest income)(17,015)(5,230)TOTAL REMEASUREMENTS INCLUDED IN OTHER COMPREHENSIVE INCOME

70,68628,004

160

5,814

4,542

271,690257,340

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.

Umicore Integrated Annual Report 2020

Statements
Other plan assets are predominantly invested in insurance contracts and bank term deposits. The
expected long-term rate of return on assets assumptions is documented for the individual plans asrecommended by the local actuaries.

Thousands of Euros

161
2020

EXPECTED CASH FLOWS FOR FOLLOWING YEAR
Expected employer contributions

34,132

Expected total benefit payments
2020
Valuation trend +0,25% Valuation trend -0,25%
Sensitivity to trend rate assumptions on discount rate
Present value of defined benefit obligation

Year 1

31,359Year 225,960Year 325,600Year 4

20,150658,818

709,792

14.18

15.63

672,805

642,411

691,403

670,934

2019

2020

Balance sheet liability (asset) as of previous year

332,951

391,734

Plan

Expiry date

ExercisePension expense recognized in P&L in the financial year

37,28738,816ISOP 201410/02/2021

all working days of Euronext Brussels

16.14

101,750

Amounts recognized in SoCI

70,68628,004

15.80

3,000

Employer contributions via funds in the financial year

(37,964)(20,633)

16.49

Employer contributions paid directly in the financial year

(11,327)(11,840)

Weighted average duration of benefit obligation (in years)
Sensitivity to trend rate assumptions on inflation rate
Present value of defined benefit obligation
Sensitivity to trend rate assumptions on salary increase rate
Present value of defined benefit obligation

Thousands of Euros

Year 529,209Next 5 years

160,840

F28 STOCK OPTION PLANS GRANTED BY THE COMPANY
Exercise priceEUR (the exercise
price may be higher Number of options
in certain countries) still to be exercised

BALANCE SHEET RECONCILIATION

7,875
112,625

Amounts recognized due to plan combinations

(13)

233

17.29

344,315

Exchange rate adjustment - (gain)/loss

114

(785)

18.90

10,000391,734

425,529

19.50

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

09/02/2022

all working days of Euronext Brussels

24,750379,065

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

392,651

426,356

(744)

(820)

Asset employee benefit in non current asset (note F20)
Other
NET OBLIGATION ON BALANCESHEET

(173)

(7)

391,734

425,529

At 31 December
Thousands of Euros

ISOP 2015

2016

2017

2018

2019

2020

Present value of defined benefit obligation

521,153552,021549,052

651,685

697,222

Fair value of plan assets

183,246

209,774

216,101

259,952

271,690

DEFICIT (SURPLUS) IN THE PLAN

337,907342,247

332,951

391,733

425,532

Experience adjustments on plan assets(16,036)(5,286)

4,410(17,138)(5,398)Experience adjustments on plan liabilities

14,861

4,611

5,967

3,032

2,942

ISOP 201604/02/2023

all working days of Euronext Brussels

16.63

ISOP 201713/02/2024

all working days of Euronext Brussels

25.50

720,750
720,75027.04

977,000
23,7501,000,750

ISOP 201808/02/2025

all working days of Euronext Brussels

40.90

ISOP 201910/02/2026

all working days of Euronext Brussels

34.08

1,182,625
1,182,625

36.78

1,216,000
5,000
1,221,000

ISOP 2020

09/02/2027

all working days of Euronext Brussels

42.05

1,168,375
1,168,375

TOTAL

5,785,190

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

Umicore Integrated Annual Report 2020

Statements
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.
2019

2020

Number ofshare options

Weighted
average
exercise price

Number ofshare options

Weighted
average
exercise price

Outstanding at the beginning of the year

5,356,854

24.14

5,641,250

27.42

Granted during the year

1,221,000

34.09

1,168,375

42.05

DETAILS OF THE SHARE OPTIONS OUTSTANDING DURING
THE YEAR

Exercised during the year

936,60417.37

1,024,435

18.25

OUTSTANDING AT THE END OF THE YEAR

5,641,250

27.42

5,785,190

32.00

Exercisable at the end of the year

5,641,250

27.42

5,785,190

32.00

The options outstanding at the end of the year have a weighted average contractual life until
January 2025.
The details concerning the calculation of the fair value of the options granted are detailed under note F10
on Payroll and related Benefits.

At the end of previous year
. Acquisition through business combinations

Provisions forsoil clean-up &site rehabilitation

Other environmental
provisions

Total

57,992

10,08968,081

-

2,079

2,079

. Increase (included in "Other
operating expenses")

54,4797,703

62,182. Reversal (included in "Other
operating expenses")

(353)

(197)

(550)

(1,777)(6,501)(8,278)53-

53(2,156)-(2,156)

(0)

(38)

(38)

108,238

13,136

121,374

105,093

7,165

112,258

3,145

5,971

9,116

. Use (included in "Other
operating expenses"). Discounting (included in "Finance cost ­Net"). Translation differences. Other movements
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 byreference to an estimate of the probability of future cash outﬂows 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 fromthe amounts recognized.
Provisions increased overall by € 53.3 million, with additional provisions which are higher than the uses
and reversals of existing provisions.
The acquisitions through business combinations are related to the subsequent corrections of the opening
balance sheet in Finland during the course of 2020 (note F8).
The new provisions for soil and groundwater remediation are mainly related to new provisions taken
in Belgium at the Hoboken and Olen sites. In Recycling, a charge of € 50.9 million was accounted for,comprising a € 50.0 million provision to cover costs related to the intention to buy houses closest to the
Hoboken plant and create a green zone. These costs comprise an estimated purchase value of the houses(based on third party appraisal) to be demolished as well as an estimate of demolition and landscaping
costs. Concertation with the city council and residents is ongoing and might result in adjustments to thiscost estimate.
Most of the uses of provisions for soil and groundwater remediation for the period are linked to therealization of site remediation programs in France, in the USA and in Belgium.

F29 ENVIRONMENTAL PROVISIONS

Thousands of Euros

162

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 reacha permanent storage solution. This exercise will include an update of the estimated future remediationand storage costs and the dedicated existing environmental provisions once the technical aspects will
have been determined. Developing and implementing this detailed roadmap is currently expected to takeseveral years. Umicore will in the meantime continue the monitoring works to guarantee that no risks are
emanating from those remnants, 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.

Umicore Integrated Annual Report 2020

Statements
F30 PROVISIONS FOR OTHER LIABILITIES AND CHARGES

Provisions forlitigation

Provisions foronerouscontracts IFRS
9Provisions forotherliabilities andcharges

Total

22,945

3,288

24,10553,293

103,631. Increase (included in "Other
operating expenses")

39,590--24,81964,409. Reversal (included in "Other
operating expenses")(3,111)-(2,650)(16,552)(22,313). Use (included in "Other
operating expenses")(9,888)

(569)

(528)

(9,190)(20,175). Translation differences(2,100)

(32)

(964)

(1,489)(4,585). Transfers(6,581)

-

-

6,572

(9)

Thousands of Euros
At the end of the previous year

AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONSProvisions forreorganisation&
restructuring

40,856

2,686

19,96357,454

120,958

Of which - Non Current

29,154945-

39,68369,782

Of which - Current

11,703

1,741

19,963

17,77351,180163

The provisions for onerous contracts related to IFRS 9 are linked to the introduction of IFRS 9 for fair value
hedging. 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 offsets under IAS 37 principles
any material positive mark-to-markets with provisions for onerous contracts and reclassifies the negative
mark-to-markets under the provisions for onerous contracts (see also Notes F2.21.1, F3.2.2 and F4.5).
The movement in 2020 on the IFRS 9 related onerous contract provisions amounted to net decrease of€ 4.1 million.
The other provisions for liabilities and charges include other onerous contracts provisions of € 12.7 million(net increase of € 9.5 million compared with 2019) and provisions for warranty and quality recall risks of€ 32.8 million (net decrease of € 10.3 million compared with 2019) that are mainly linked to risks 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).
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.

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 € 17.3 million.
Additional provisions for reorganization and restructuring have been taken for the restructuring initiatives
in Cobalt & Specialty Materials in Belgium, in the USA and in France for € 9.4 million. € 14.7 million
have been booked as well in Rechargeable Battery Materials linked to a site reconfiguration in
Korea and € 13.9 million in Catalysis related to the consolidation of the North American automotive
catalysts production.
The uses of provisions for reorganization and restructuring relate to the execution of the previously
announced restructurings in the USA and in Germany.
The provisions for litigation are not including the tax provisions related to IFRIC 23 as those are booked
under the line Income tax payable.

Umicore Integrated Annual Report 2020

Statements

164

F31 CAPITAL EMPLOYED
Thousands of Euros

Notes

31/12/2019

30/06/2020

Intangible assets

F14,F15

370,859

345,630

346,888F16

2,094,672

2,082,292

2,163,661

Investments accounted for under the equity method

F17

150,642

144,233

139,839

Financial assets at FV through OCI

F1810,897

10,4808,352

Inventories

F19

2,462,330

2,516,570

2,718,092

Non current receivable (excluding assets
employee benefits)

F20

Property, plant and equipment

Adjusted current accounts receivable
Income tax receivable
ASSETS INCLUDED IN CAPITAL EMPLOYED
Non-current trade and other payables

F25

Adjusted current accounts payable
Translation reserves

31/12/2020

10,865

9,815

10,945

1,405,810

1,281,869

1,611,461

45,44739,07639,5536,551,521

6,429,964

7,038,790

24,12021,24623,505

1,867,518

1,807,704

2,360,975

F23(82,870)(154,151)(202,148)

Non-current provisions

F29,F30

107,487

106,666

182,040

Current provisions

F29,F30

64,23050,72160,296

131,483

147,874

160,734

LIABILITIES INCLUDED IN CAPITAL EMPLOYED

2,111,969

1,980,060

2,585,401

Capital employed

4,439,552

4,449,904

4,453,389

2,439

2,707

3,191

CAPITAL EMPLOYED AS PUBLISHED

4,441,991

4,452,611

4,456,580

Average Capital Employed in half year precedingclosing date

4,208,271

4,454,596

Average Capital Employed in year preceding closing date

4,048,377

4,450,948

508,920536,361

12.57%

12.05%

Income tax payable

Eliminations

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

F9

The adjusted current account receivables included in the “Capital Employed” do not take into account themargin calls (€ 20.6 million at the end of 2020) and the gains booked on the mark-to-market value ofstrategic hedging instruments (€ 45.1 million in 2020). 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 (€ 58.0 million at the end of 2020).
Average capital employed for the half years is calculated as the average of the capital employed at
the end of 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 Integrated Annual Report 2020

Statements

165

F32 FINANCIAL INSTRUMENTS BY CATEGORYAS AT THE END OF PREVIOUS YEAR
Carrying amountThousands of Euros

Level

Fair value

Fair value hedge
accounting (*) Cash Flow hedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI-

10,897ASSETSFINANCIAL ASSETS AT FAIR VALUE THROUGH OTHERCOMPREHENSIVE INCOME
Financial assets at fair value through Other Comprehensive Income- Shares10,8971--

10,897---

10,897

2,192

-

-

2,192

-

2,192

-

-

2,192

-

1,445,696

47,495

19,6991,378,502-

Cash guarantees and deposits

8,893

-

-

8,893

-

Other receivables maturing in more than 1 year

1,972

-

-

1,972

-

Assets employee benefits

1,173

-

-

1,173

-

LOANS GRANTED
Loans to associates and non consolidated affiliates
TRADE AND OTHER RECEIVABLES
Non-current

Current
Trade receivables (at cost)

1,171,835--

1,171,835-

Trade receivables (write-down)(22,983)--(22,983)-

Other receivables (at cost)

180,336--

180,336

-

(207)

-

-

(207)

-

Other receivables (write-down)Interest receivable

2

156

-

-

156

-

Fair value of financial instruments held for cash-flow hedging

219,699-19,699--Fair value receivable - financial instruments related to FV hedging

47,49547,495---

Deferred charges and accrued income

37,327--37,327-

271,723--

271,723-

25,524--25,524

-

7

-

-

7

-

Cash-in-hand and bank current accounts

246,192--

246,192-

TOTAL OF FINANCIAL INSTRUMENTS (ASSETS)

1,730,508

47,495

19,6991,652,417

10,897

CASH AND CASH EQUIVALENTS
Short-term investments: bank term deposits
Short-term investments: term deposits (other)Umicore Integrated Annual Report 2020

Statements

166
Carrying amountThousands of Euros

Level

Fair value

Fair value hedge
accounting (*) Cash Flow hedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI

Liabilities
FINANCIAL DEBT

1,753,145--

1,715,146-

Bank loans

1,139,266--

1,101,266-

Lease liability

46,262--

46,262-Other loans

3,555

-

-

3,555

-

Short term bank loans

248,478--

248,478-

Bank overdrafts

32,493--32,493-

Short term loan: commercial paper

282,936--

282,936

-

155

-

-

155

-

1,940,468

18,67048,8291,872,969-

Long term trade payables

2,579

-

-

2,579

-

Other long term debts

5,520

-

-

5,520

-

Investments grants and deferred income from grants

16,021--

16,021-

Non-current

Current

Other loans
TRADE AND OTHER PAYABLES
Non-current

Current
Trade payables

1,466,140--

1,466,140-

Advances received on contracts in progress

15,448--15,448-Tax - other than income tax - payable

26,190--26,190-

Payroll and related charges

125,252--

125,252-

Other amounts payable

56,399--56,399-Dividends payable

11,657--

11,657-

Accrued interest payable

7,856

-

-

7,856

-

Fair value financial instrument held for cash flow hedging

248,829-48,829--Fair value payable - financial instruments related to FV hedging

218,67018,670---Accrued charges and deferred income

139,907--

139,907-

TOTAL OF FINANCIAL INSTRUMENTS (LIABILITIES)

3,693,613

18,67048,8293,588,115-(*) see note F33.2 paragraph 1 for IFRS 9 classification of financial instruments for currency and commodity hedging.

Umicore Integrated Annual Report 2020

Statements

167

AS AT THE END OF THE FINANCIAL YEAR
Carrying amountThousands of Euros

Level

Fair value

Fair value hedge
accounting (*)

Cash Flowhedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI

8,352

-

-

-

8,352

AssetsFINANCIAL ASSETS AT FAIR VALUE THROUGH OTHERCOMPREHENSIVE INCOME
Financial assets at fair value through Other Comprehensive Income- Shares

1

8,352

-

-

-

8,352

3,332

-

-

3,332

-

3,332

-

-

3,332

-

1,688,931

23,44245,091

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

-

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

23,442---

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

23,44245,091

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 Integrated Annual Report 2020

Statements

168
Carrying amount

Fair value

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

38,296

57,9572,346,180-

Other long term debts

5,682

-

-

5,682

-

Investments grants and deferred income from grants

17,823--

17,823-Thousands of Euros

Level

Liabilities
FINANCIAL 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

238,29638,296---

Accrued charges and deferred income

159,784--

159,784-

TOTAL OF FINANCIAL INSTRUMENTS (LIABILITIES)

4,937,864

38,296

57,9574,770,511-(*) see note F33.2 paragraph 1 for IFRS 9 classification of financial instruments for currency and commodity hedging.

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 and other 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 endof the reporting 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 end of 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
the reporting 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 Integrated Annual Report 2020

Statements
32.1 FAIR VALUE HIERARCHYThe 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.
32.2 SENSITIVITY ANALYSIS ON FINANCIAL INSTRUMENTS
Umicore is sensitive to commodity prices, foreign currency and interest rate risk on its
financial instruments.
32.2.1 COMMODITY PRICESThe fair value on ﬁnancial instruments related to cash ﬂow hedging sales would have been € 18.2 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
€ 3.0 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 € 7.9 million higher/lower
if the metal prices would strengthen/weaken by 10%.
The fair value on other commodity sales ﬁnancial instruments would have been € 32.3 million lower/
higher and the fair value on other commodity purchases ﬁnancial instruments would have been
€ 3.6 million higher/lower if the metal prices would strengthen/weaken by 10%.

169

The fair value of forward currency contracts related to cash ﬂow hedging would have been € 4.0 million
lower if the USD would strengthen against KRW by 10% and would have been € 4.9 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 € 3.8 million
higher if the EUR would strengthen against CNY by 10% and would have been € 4.2 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 € 9.0 million
lower if the USD would strengthen against CNY by 10% and would have been € 10.6 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 € 5.4 million
lower if the USD would strengthen against BRL by 10% and would have been € 6.9 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 € 2.0 million
lower if the USD would strengthen against CAD by 10% and would have been € 2.5 million higher if USD
would weaken against CAD by 10%.
The fair value of other forward currency contracts sold would have been € 56.3 million higher if the
EUR would strengthen against USD by 10% and would have been € 68.8 million lower if the EUR would
weaken against USD by 10%.
The fair value of other forward currency contracts bought would have been € 11.6 million lower if the
EUR would strengthen against USD by 10% and would have been € 14.1 million higher if the EUR would
weaken against USD by 10%.
The fair value of net position of current assets and liabilities exposed to USD would have been
€ 18.9 million lower if the EUR would strengthen against USD by 10% and would have been € 23.2 million
higher if the EUR would weaken against USD by 10%.

32.2.2 FOREIGN CURRENCY
The fair value of forward currency contracts related to cash ﬂow hedging would have been € 11.7 million
higher if the EUR would strengthen against USD by 10% and would have been € 16.1 million lower if the
EUR would weaken against USD by 10%.

The fair value of other forward currency contracts sold would have been € 36.7 million higher if the
EUR would strengthen against CNY by 10% and would have been € 44.9 million lower if the EUR would
weaken against CNY by 10%.

The fair value of forward currency contracts related to cash ﬂow hedging would have been € 0.9 million
lower if the EUR would strengthen against ZAR by 10% and would have been € 1.1 million higher if the
EUR would weaken against ZAR by 10%.

The fair value of net position of current assets and liabilities exposed to CNY would have been
€ 29.8 million lower if the EUR would strengthen against CNY by 10% and would have been € 36.4 million
higher if the EUR would weaken against CNY by 10%.

Umicore Integrated Annual Report 2020

Statements
The fair value of other forward currency contracts sold would have been € 18.1 million higher if the CNY
would strengthen against USD by 10% and would have been € 22.1 million lower if the CNY would weaken
against USD by 10%.

33.1 FINANCIAL INSTRUMENTS RELATED TO CASH-FLOW HEDGING

The fair value of other forward currency contracts bought would have been € 12.0 million lower if the
EUR would strengthen against PLN by 10% and would have been € 14.6 million higher if the EUR would
weaken against PLN by 10%.

Thousands of Euros

The fair value of net position of current assets and liabilities exposed to PLN would have been€ 12.3 million lower if the EUR would strengthen against PLN by 10% and would have been € 15.0 million
higher if the EUR would weaken against PLN by 10%.
The fair value of other forward currency contracts sold would have been € 7.7 million higher if the
EUR would strengthen against HKD by 10% and would have been € 9.4 million lower if the EUR would
weaken against HKD by 10%.
The fair value of other forward currency contracts bought would have been € 9.6 million lower if the
KRW would strengthen against USD by 10% and would have been € 7.9 million higher if the KRW would
weaken against USD by 10%.
The fair value of net position of current assets and liabilities exposed to KRW would have been
€ 10.0 million lower if the EUR would strengthen against KRW by 10% and would have been € 12.2 million
higher if the EUR would weaken against KRW by 10%.

F33 FAIR VALUE OF FINANCIAL INSTRUMENTS (DERIVATIVES)
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.

Notional orContractual amount

170

Fair value

31/12/2019

31/12/2020

31/12/2019

31/12/2020

Forward commodities sales

186,117

131,855(41,403)(49,786)

Forward commodities purchases(76,930)(86,877)

7,538

22,099Forward currency contracts sales

319,897

641,320(829)

12,606

Forward currency contracts purchases(64,264)(79,688)

6,250

2,986

Forward IRS contracts

40,00040,000

(687)

(771)

(29,130)(12,866)

TOTAL FAIR VALUE IMPACT SUBSIDIARIES
recognized under trade and other receivables

19,69945,091

recognized under trade and other payables(48,829)(57,957)

Total fair value impact associates and joint ventures
TOTAL

72

1,114

(29,058)(11,752)

The 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
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
ZAR and CNY. The terms and conditions of the forward contracts are common market conditions. In thosecircumstances whereby the hedge accounting documentation as defined under IFRS 9 is not available,financial instruments used to hedge structural risks for metals and currencies are measured as if they
were held for trading. However, such instruments are being used to hedge future probable cash-flows
and are not speculative in nature. Umicore did not face any ineffectiveness on cash flow hedging in P&L
in 2019 and 2020.
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 negative impact on
the fair value reserves in equity at end of 2020. This negative impact is most significant for commodities
sold, while commodities purchased and forward currency contracts offset part of this negative impact.
The majority of the hedging instruments have their maturity within the next two years.

Umicore Integrated Annual Report 2020

Statements
33.2 FINANCIAL INSTRUMENTS RELATED TO FAIR VALUE HEDGING
Notional orContractual amountThousands of Euros

Fair value

31/12/2019

31/12/2020

31/12/2019

31/12/2020

Forward commodities sales

389,955

303,729

28,666(19,549)

Forward commodities purchases(390,761)(33,687)

(937)

1,891

Forward currency contracts sales

1,346,766

1,532,188

2,818

5,342

Forward currency contracts purchases(613,466)(536,554)(1,723)(2,539)TOTAL FAIR VALUE IMPACT SUBSIDIARIES

28,824(14,854)

recognized under trade and other receivables

47,49523,442

recognized under trade and other payables(18,670)(38,296)

TOTAL

28,824(14,854)

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. In that latter case, the financial instruments are measured at171

fair value as if they were held for trading. However, such instruments are being used to cover existingtransactions, considered as hedged items under Umicore transactional hedging risk policy (primarily
inventory and firm commitments) and so these commodity hedging instruments held for trading are notspeculative in nature. The accounting treatment of hedged items in absence of IFRS 9 hedge accounting
is further described in note F30 on Provisions for other Liabilities and Charges.
The fair values are immediately recognized in the income statement under Other Operating income forthe commodity instruments and the Net Finance cost for the currency instruments.
The fair values of the hedging instruments reflect the difference between the contract rates and theclosing rates. 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 2020. Most of the fair values of thehedging 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 instrumentsof which most have their maturity within the next year. However, 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 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 up to hedge primarily gold, silver, nickel, lead and copper.
The forward currency contracts are set up to hedge USD towards EUR, KRW, CNY, BRL and CAD as well as
EUR towards CNY, ZAR, CAD, CHF, JPY, THB, DKK and PLN.

Umicore Integrated Annual Report 2020

Statements

172

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

1 to 3 Months

3 Months to 1
Year

1,099

2,078

-

-

Total forward sales (FV Hedging)

49,076

Total forward purchases (FV Hedging)

Earliest contractual maturity (undiscounted) - fair value

1 to 5 Years

Total< 1 Month

1 to 3 Months

3 Months to 1
Year

9,231

2,286

14,694

119

245

-

64,26464,264--59,043

131,159-

239,279

8,620

16,865

270,499--

287,364

3,828

7,480

33,93367,372---64,264

Forward currency contracts sales (FV Hedging)

621,600

85,064

170,640

Forward currency contracts purchases (FV Hedging)

244,968

9,171-

Total forward sales (CFH)
Total forward purchases (CFH)

Thousands of Euros

1 to 5 Years

Total

1,002

25

1,391

-

9,764

9,764

10,327

14,812-

33,760

233

7,370

-

-

7,603

112,613

77

153

680

1,383

2,294

64,264

-

-

-

6,250

6,250

-

877,304

3,608

760

1,053

-

5,421

593

-

254,732

567

140

4

-

711

-

-

40,00040,000

-

-

-

(687)

(687)

-

26,94453,907

90,572

171,423-(8,634)(16,467)(17,694)(42,795)--

10,372

2,295

12,667--(2,125)(101)(2,226)

Total forward sales (FV Hedging)

20,221

82,057

48,397-

150,676(372)(3,303)(1,418)-(5,094)

Total forward purchases (FV Hedging)

45,29438,073

20,030-103,397(4,700)(3,849)9-(8,540)FINANCIAL INSTRUMENTS ASSETS (FAIR VALUE)
Commodity risk
Total forward sales (CFH)
Total forward purchases (CFH)

FX Risk
Forward currency contracts sales (CFH)
Forward currency contracts purchases (CFH)

FINANCIAL INSTRUMENTS LIABILITIES (FAIR VALUE)
Interest Rate Risk
Interest rate swaps
Commodity risk

FX Risk
Forward currency contracts sales (CFH)

15,41930,481

125,662

35,723

207,284

(399)

(738)

(2,186)200(3,123)Forward currency contracts sales (FV Hedging)

313,853

145,539

10,071-

469,462(1,543)

(949)

(110)

-

(2,603)Forward currency contracts purchases (FV Hedging)

237,483

22,17098,779301

358,733(1,582)

(151)

(701)

(0)

(2,434)

Umicore Integrated Annual Report 2020

Statements

173

AS AT THE END OF THE FINANCIAL 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
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 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 Hedging)

594,604

522,845

173,820-

1,291,269

6,530

5,360

5,008

-

16,897

Forward currency contracts purchases (FV Hedging)

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
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 Hedging)

44,004

162,083

97,642-

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

Total forward purchases (FV 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 Hedging)

92,962

56,711

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

Forward currency contracts purchases (FV Hedging)

211,408

144,148

51,452

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

Umicore Integrated Annual Report 2020

Statements

174(*) 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 STATEMENT
34.1 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

2019

2020

244,038

267,941(Reversal) Impairment charges

23,60287,543

Mark to market of inventories and commitments(38,277)

464

Exchange difference on long-term loans(1,946)(4,169)Inventories and bad debt provisions

39,926

7,012

Depreciation on government grants

(904)

(199)

Share-based payments

8,211

10,108Adjustments for non cash transactions
Depreciations

Change in provisions(67,349)

80,323

TOTAL

207,302449,023

Tax charge of the period

96,691

59,131

Interest (income) charges

41,042

57,910(Gain) loss on disposal of fixed assets(8,033)(760)

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

Dividend income

(133)

(230)

129,568

116,051

Inventories(154,236)(255,762)

Trade and other receivables(271,357)(237,694)

Trade and other payables

383,700

531,216

AS IN THE CONSOLIDATED BALANCE SHEET(41,893)

37,760Non-cash items (*)(10,329)

17,742Items disclosed elsewhere (**)

(79,639)(37,822)

Impact of business combination

56,050(3,136)

Currency translation differences(2,630)(118,300)(78,441)(103,756)

TOTAL
Change in working capital requirement analysis

AS IN THE CONSOLIDATED CASH FLOW STATEMENT

Net cash andcash equivalent

Loans (w/obank overdrafts)

Net financial debt

At the end of previous year

239,231

1,682,653

1,443,422

Cash flow of the period

762,398

733,001(29,397)

1,001,629

2,415,654

1,414,025

Thousands of Euros

AT THE END OF THE FINANCIAL YEAR

34.2 NET CASH FLOW GENERATED BY OPERATING ACTIVITIESOperating cash ﬂow after tax from continuing operations is € 528.3 million. The net working capitalrequirements for continuing operations increased with € 103.8 million in 2020 compared to 2019,reflecting a pronounced increase in working capital needs in Catalysis and, to a lesser extent, in Recycling
due to strong year-on-year price increases in precious metals, PGM’s in particular. Energy & Surface
Technologies reported a decrease in working capital needs year on year due to subdued sales volumes
and metal prices.
34.3 NET CASH FLOW USED IN INVESTING ACTIVITIESNet cash used in investing activities for continuing operations decreased by € 320.6 million in 2020.
Capital expenditure for continuing operations reached € 403.2 million (compared to € 553.2 million in2019) if capitalized R&D costs are excluded as per Umicore’s deﬁnition of capital expenditures (refer toGlossary). This reduction in capital expenditure reflects the decision taken shortly after the start of the
COVID-19 outbreak to postpone selected investment projects with the exception of safety and license
to operate investments, awaiting more clarity on market outlook. Taking into account the continued
investment in Rechargeable Battery Materials’ greenfield plant in Poland, Energy & Surface Technologies
accounted for close to two thirds of the Group’s capex. Spending for this strategic project will continue into
2021. Capitalized development expenses amounted to € 32 million compared to € 35 million in 2019.
34.4 NET CASH FLOW USED IN FINANCING ACTIVITIESThe cash generated in ﬁnancing activities is mainly the consequence of the net increase of theindebtedness (€ 806.0 million). The cash used in financing activities is mainly related to thepurchase and use of own shares to cover the exercise of options (€ 26.9 million), the payment
of dividends (€ 65.0 million) and of interest (€ 56.3 million) and the reimbursement of the lease liability(€ 19.8 million).

Umicore Integrated Annual Report 2020

Statements
Thousands of Euros
Acquisition of tangible assets
Acquisition of intangible assets
ACQUISITIONS OF ASSETS
Capitalized R&D
CAPITAL EXPENDITURE FOR CONTINUING OPERATIONS

2019

2020

529,487

391,475

58,36244,060587,849

435,535

34,66032,368553,189

403,168

Guarantees constituted by third parties on behalf of the Group

2019

2020

24,80230,999

Guarantees constituted by the Group on behalf of third parties

10,903

6,940

Guarantees received

130,005

68,596

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

515,254

1,513,704

Commitments to acquire and sell fixed assets

567

288

679,569

701,475

Commercial commitments for commodities sold (to be delivered)

1,213,465

1,667,126

Goods and titles of third parties held by the Group

3,635,638

4,930,583

567

288

6,210,203

8,919,711

Commercial commitments for commodities purchased (to be received)Miscellaneous rights and commitments
TOTAL

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
mother company on behalf of one of its subsidiaries. A minor part of the received guarantees is related
to rent 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.

F35 OFF-BALANCE SHEET RIGHTS AND COMMITMENTS
Thousands of Euros

175

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.
There are no loan commitments given to third parties.
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.

35.4 GOODS AND TITLES HELD BY THIRD PARTIES IN THEIR OWN NAMES BUT AT THE GROUP’S RISK
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 2020, there was a net lease-in position of € 846 million vs. € 1,088 million at end of 2019.
This decrease is mainly caused by lower volumes compensating higher metal prices. As detailed in Note
F2.7, those metal leases are not under the scope of IFRS 16.

F36 CONTINGENCIESAs 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 € 25 million to be grossed up with statutory interests, estimated at 31 December 2020at € 12.5 million. Having taken expert advice, Element Six Abrasives submitted an appeal contesting theassessment and recognised the file as a contingent liability. Umicore retains a 40.22 % interest in Element
Six Abrasives and accounts for the company using the equity method.

Umicore Integrated Annual Report 2020

Statements
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.

F37 RELATED PARTIES
Thousands of Euros

2019

2020

Operating income

109,636

100,444

Operating expenses(208,746)(148,888)

Dividends received(11,321)(1,796)

Thousands of Euros

2019

2020

Current trade and other receivables

24,45732,685Current trade and other payables

34,85538,779Transactions with joint ventures and associates

Thousands of Euros

176

2019

2020

Management Board
Salaries and other benefits

11,565

7,522

Short-term employee benefits

5,072

1,496

Post-employment benefits

1,002

1,052

Other long-term benefits

1,773

492

Share-based payments

3,718

4,483

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.

Outstanding balances with joint ventures and associates

The transactions with associates and joint ventures are mainly commercial transactions, sales andpurchases of goods and services.

The ﬁgures related to the undeferred part of the variable remuneration linked to the individual
performance for the reference year 2020, 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 2020.

There are no transaction with entities held by key management personnel.
Thousands of Euros

2019

2020

897

1,022

Fixed portion

296

296

Variable portion (based on attended meetings)

334

373

Value of the share grant

264

350

2

3

Supervisory Board
Salaries and other compensation

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.

With regards to share-based incentives the share grant ﬁgures included in share-based payments above
represent the value of the shares granted in 2020 for services rendered in 2019. The remuneration reportshows the value of the shares granted in 2021 for services rendered in the reporting year 2020.

Accruals booked for the deferred parts of the variable cash remuneration for the reference year 2020are included in the other long-term beneﬁts. The amounts to be paid in 2023 will depend on long-term
performance measures and the exact amounts paid will be included in the remuneration report of 2022.

F38 EVENTS AFTER THE REPORTING PERIODThe Supervisory Board will propose a gross annual dividend of € 0.75 per share at the Annual General
Meeting on 29 April 2021. This compares to a full dividend of € 0.375 p.s. paid out for the financial year
2019. Taking into account the interim dividend of € 0.25 per share paid out on 25 August 2020 and subject
to shareholder approval, a gross amount of € 0.50 per share will be paid out on 5 May 2021.
On 11 February 2021, it was announced that the Supervisory Board would start a process to identify asuccessor to Marc Grynberg, CEO.

Umicore Integrated Annual Report 2020

Statements

177

During 2020, no new shares were created as a result of the exercise of stock options with linked
subscriptions rights. During the year Umicore used 1,024,435 of its treasury shares in the context of theexercise of stock and 66,430 for shares granted. In the course of 2020, Umicore bought back 1,200,000
own shares. On 31 December 2020, Umicore owned 5,733,685 of its own shares representing 2.33 % of
the total number of shares issued as at that date.

F39 EARNINGS PER SHAREEARNINGS PER SHARE
(EUR)

2019

2020

EPS - basic

1.2

0.54

EPS - diluted

1.19

0.54

Basic adjusted EPS

1.3

1.34

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

F40 IFRS DEVELOPMENTS
There were no new standards, amendments and interpretation to standards issued, and mandatory forthe first time for the financial year beginning 1 January 2020 with a material impact on the Group’s
consolidated financial statements .
In case of material, these are developed in the accounting policies section.

NUMERATOR ELEMENTS
Thousands of Euros
Net consolidated profit, Group share

Notes

2020

287,791

130,530

311,714

322,407

F9

From continuing operations
Adjusted net consolidated profit, Group share

2019

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

2019

2020

246,400,000

246,400,000

5,624,550

5,733,685

240,775,450

240,666,315

240,558,659

240,589,550

1,354,110

1,183,525

241,912,769

241,773,075

For all other new interpretations and standards not yet mandatory as from 1 January 2020,
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 € 2.9 million,
including an amount of € 1.8 million for the statutory audit missions (€ 0.5 million for the audit of themother company) and € 1.2 million for non-statutory audit services including audit-related and otherattestation services (€ 0.2 million) and other non-audit related services (€ 1.0 million).

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.

Umicore Integrated Annual Report 2020

Statements
PARENT COMPANY SEPARATE SUMMARIZED FINANCIAL STATEMENTS
The annual accounts of Umicore are given below in summarized form.

Thousands of Euros

These documents are also available on request at:
UMICORERue du Marais 31
B-1000 Brussels(Belgium)
The statutory auditor did not express any reservations in respect of the annual accounts of Umicore.
The legal reserve of € 55.0 million which is included in the retained earnings is not available
for distribution.

31/12/2018

31/12/2019

31/12/2020

Summarized balance sheet at 31 December
1. Assets
FIXED ASSETS

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.

178

2,121,852

2,885,295

3,172,625

I.

Formation expenses

8,256

6,066

14,685II.

Intangible assets

114,447

114,726

99,032

III.

Tangible assets

425,814

467,458

452,430

IV.

Financial assets

CURRENT ASSETS

1,573,335

2,297,045

2,606,478

1,696,083

1,748,153

2,060,640

V.

Amounts receivable after more than one year

362,679

449,366

476,214VI.

Stocks and contracts in progress

641,452

534,771

617,346

VII.

Amounts receivable within one year

502,354519,135

620,119

VIII.

Investments

158,103

184,701

290,395

IX.

Cash at bank and in hand

3,937

2,190

4,565

X.

Deferred charges and accrued income

27,55857,99052,001

3,817,935

4,633,448

5,233,265

Capital and reserves

2,148,879

2,268,310

2,177,834

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

363,257

389,855

414,075

V.

Result carried forward

152,409262,604

267,163

Vbis. Result for the period

227,001

209,258

86,475

7,991

8,372

11,900TOTAL ASSETS
2. Liabilities and shareholders' equity

VI.

Investments grants

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

125,326

123,600

206,053

1,543,730

2,241,539

2,849,378

VIII.

Amounts payable after more than one year

692,996

1,082,864

1,707,729

IX.

Amounts payable within one year

758,721

1,076,244

1,063,641

X.

Accrued charges and deferred income

92,01382,43178,0083,817,935

4,633,449

5,233,265

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

Umicore Integrated Annual Report 2020

Statements
Thousands of Euros

31/12/2018

31/12/2019

31/12/2020

Income statement
Operating income

2,960,635

3,628,486

3,489,297

II.

Operating charges(2,900,861)(3,532,944)(3,494,693)

III.

Operating result

59,77495,542(5,396)

IV.

Financial income

161,063

193,305259,275

V.

Financial charges(69,747)(59,393)(41,210)VI.

Result on ordinary activities before taxes

151,090

229,454

212,669

X.

Income taxes(1,274)(2,453)(3,411)XI.

Result for the period

149,816

227,001

209,258

XIII.

Result for the period available

149,816

227,001

209,258

2018

2019

2020

Profit (loss) to be appropriated568,719

641,302588,668

1.

Profit (loss) for the financial year

149,816

227,001

209,258

2.

Profit (loss) carried forward

418,903414,301

379,410

7,862(81,349)(26,598)-(5,000)Appropriation account
A.

C.

D.

F.

Appropriation to equity

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.

Ordinary shares
2.2.

E.

Authorized unissued capitalG.

Shareholder base (1)Registered

48,472,816

Bearer197,927,184
55,00045,871,052

07/12/2018

12,193,030

08/05/2020

Baillie Gifford & Co and Baillie Gifford
Overseas Ltd.

6.46

15,918,969

07/10/2019

Others

67.65

166,683,264

31/12/2019

Own shares held by Umicore

2.33

5,733,685

31/12/2020

100.00246,400,000

100.00246,400,000

Profit (loss) to be carried forward (1)414,301

379,410

471,8622.

414,301

379,410

471,862(90,208)

Dividendsof which free float(180,543)

Registered shares orbearer shares

4.95(26,598)(162,280)

Categories of shares

18.62(76,349)

ordinary shares

At the end of the preceding
financial year

BlackRock Investment Management

7,862(180,543)

2.

Issued capital-To the reserve for own shares(162,280)

1.

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

3.

1.

Share capital

Number of shares

To the legal reserve

Profit to be distributed (1)A.

% capital

2.

Profit (loss) to be carried forward

Number of shares

Statement of capitalI.

Thousands of Euros

Thousands of Euros

179(90,208)(1) The total amount of these two items will be amended to allow for the amount of the company's own shares held by
Umicore on the date of the Annual General Meeting of Shareholders on 29 April 2021 ; the gross dividend of EUR 0.75 will
be proposed.

Notification date(1) At 31 December 2020, 5.785.190 options on Umicore shares are still to be exercized. This amount includes 5.785.190
acquisition rights of existing shares held by Umicore.

Umicore Integrated Annual Report 2020

Statements

180

MANAGEMENT RESPONSIBILITY STATEMENT
We hereby certify that, to the best of our knowledge, the Consolidated Financial Statements as of
31 December 2020, 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.
15 March 2021,
MARC GRYNBERGCHIEF EXECUTIVE OFFICER

Umicore Integrated Annual Report 2020

Statements

181

Value chain statements
V1

Scope of value chain statements

182

V3

INDIRECT PROCUREMENT

184

V2

CRITICAL RAW MATERIALS

182

V4

PRODUCTS AND SERVICES

185

V5

DONATIONS

186

Umicore Integrated Annual Report 2020

Statements
V1 SCOPE OF VALUE CHAIN STATEMENTS
The value chain and society theme focuses on potential impacts on society that we experience as acompany through our activities, products and services. For reporting matters, all entities of the Groupare considered.

V2 CRITICAL RAW MATERIALS
Securing adequate volumes of raw materials is an essential factor in the ongoing viability of our productand service offering and in achieving our Horizon 2020 growth objectives. The risks and opportunities
vary considerably from one business unit to another and for this reason, we have taken a decentralized
approach to risk and opportunity management. We have determined to seek a competitive edge in termsof our access to critical raw materials and in our ability to secure these raw materials in an ethical andsustainable manner.
In 2016, each business unit was asked to identify the raw materials that are critical in achieving the
Horizon 2020 objectives using a 3-step process. The process consisted of the following elements:
1. Definition of the criteria applicable to the raw materials specific to the business unit’s activity
2. Identification of the raw materials with a high probability of restrictions in supply, considering theselected criteria

182

It is particularly important to define actions to mitigate the risk of critical materials supply disruption.
Mitigation actions can vary depending on the materials and the position of the business unit in themarket. Action plans and dedicated mitigation measures must be in line with the identified risks andopportunities and are therefore updated regularly. The reviewing frequency and process vary frombusiness unit to business unit depending on the specific supply conditions. Mitigation measures beyond
responsible sourcing include due diligence actions, ensuring critical raw materials can be supplied fromseveral reliable suppliers, looking for secondary raw materials sources and ensuring the responsible
status of the raw materials. More details about the mitigation actions are provided in the next pages for
specific critical raw materials.
Business units purchasing 1 of the 4 conflict minerals to manufacture their products, use the Conflict
Mineral Reporting Template from the Responsible Minerals Initiative for their due diligence on thepurchased raw materials.
On 1 January 2021, the Conflict Minerals Regulation has come into full force across the EU. This law is similarin scope to the US Dodd Frank Act of 2012. The new law aims to help stem the trade in 4 minerals – tin,tantalum, tungsten and gold (also known as 3TG)– that sometimes finance armed conflict, are mined inunacceptable conditions and/or using forced labor. The way Umicore has been managing supply risks inthe past years is fully in line with the requirements of this new law.
In addition to existing policies and charters, such as the Umicore Code of Conduct, Human Rights Policy
and Sustainable Procurement Charter, Umicore also has a specific policy regarding Responsible global
supply chain of minerals from conflict-affected and high-risk areas.

3. Calculation of the impact of the supply risk identified on the Horizon 2020 objectives
UMICORE.COM/RESPONSIBLESUPPLYCHAIN-POLICY
21 supply criteria, covering various aspects of sustainability, have been offered to the business units as
input for the mapping. The criteria can be clustered into the following themes:
●
●
●
●
●

EHS or regulatory aspects of the raw materials
Concentration in the market or restrictions in the country of origin
Ethical aspects and potential conflicts with the Code of Conduct linked to the raw materials
Unavailability due to end-of-life of the mineral source
Physical constraints at origin

As supply risks and opportunities can change, the identification of the critical raw materials is a dynamic
process. In 2020 all business units updated their mapping. Over the course of Horizon 2020, 11 raw
materials have been identified as being critical in achieving the Horizon 2020 objectives. The type of risks
spans over the main clusters provided above.

Today, responsible mineral sourcing goes beyond conflict minerals. Umicore pursues responsible
sourcing certification wherever appropriate to highlight our best practices and to provide the necessary
documentation to the increasing number of customers seeking assurance on our products. The Umicore
internal “Metals and Minerals” working group streamlines and optimizes the efforts required for thisincreasing customer demand through best practices sharing.
The London Bullion Market Association (LBMA) manages the accreditation process for all Good Delivery
listed refiners for gold and silver. The Responsible Jewelry Council’s (RJC) Chain of Custody (CoC) Standard
is applicable to gold and platinum group metals (platinum, palladium and rhodium).
The Responsible Minerals Initiative is used by many customers to streamline the process to guarantee
conflict-free products in complex supply chains. A typical example is the automotive industry, where astructure has been created to assure that all individual elements of a car can be certified as not containing

Umicore Integrated Annual Report 2020

Statements
conflict minerals sourced from non-certified origins. This procedure is not a ban on those materials(tin, tantalum, tungsten and gold), but a process to create transparency in the supply chain to ensure
conflict-free minerals can be sourced. Other industries, such as the electronics industry, implement thesame or similar processes

LBMA Gold
Bangkok
Hoboken

LBMA Silver

RJC Chain of
Custody
Recycled gold,
platinum,palladium and/or
rhodium

RMI-Conformant
Cobalt Refiners

X
X

X

X
X

Olen

X

Pforzheim

X

ViennaX

in the framework. The share of cobalt from recycled origin was also reviewed by PwC as part of theassurance process and was 4.1% for 2020. The figure is reported in the compliance report.
A dedicated cobalt sourcing committee, referred to as the Approval Committee, is responsible forthe principles and guidelines in the framework and has overall control and decision-making power.
The Approval Committee includes a member of the Umicore Executive Committee and the senior
management of Sustainability and Supply.

RMIConformant Gold smelters
In May 2019, Umicore Olen was approved as the first Responsible Minerals Initiative-conformant cobalt
and refiners
X

Kokkola

183

X

X

X

X

Both the RJC Chain of Custody and LBMA Good Delivery accreditations qualify the accredited sites for listingin the Responsible Minerals Initiative conformant smelters and refiners.
For more information, please visit:refinery worldwide. Umicore’s newly acquired Kokkola’s cobalt operations were the second recognizedrefinery. The refineries must undergo a yearly certification process. Given the COVID-19 context in 2020,
the audit had to be postponed but both sites remain on the list of RMI compliant refiners. The audit willtake place as soon as the situation allows for it. As mentioned above the audit related to Sustainable
Procurement Framework for Cobalt, which is aligned with OECD Due Diligence Guidance for Responsible
Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, has taken place. This audit covers
the cobalt supply for Olen and Kokkola.
In 2020, Umicore performed the follow up of the mitigation actions defined as a result of the third-party
audit that was performed in 2019 at one of its cobalt suppliers. No new third party audit could be
conducted in 2020 due to the COVID-19 pandemic. We did a follow up with our suppliers in DRC on
the measures that were put in place to guarantee safe working conditions with respect to COVID-19
pandemic control.

LBMA.ORG.UK/GOOD-DELIVERY-LIST-REFINERS-GOLD-CURRENT
LBMA.ORG.UK/GOOD-DELIVERY-LIST-REFINERS-SILVER-CURRENTRESPONSIBLEJEWELLERY.COM
RESPONSIBLEMINERALSINITIATIVE.ORG/GOLD-REFINERS-LISTRESPONSIBLEMINERALSINITIATIVE.ORG/RESPONSIBLE-MINERALS-ASSURANCE-PROCESS/SMELTER­
REFINER-LISTS/COBALT-REFINERS-LIST/CONFORMANT-COBALT-REFINERS
2.1 COBALT
Umicore uses cobalt in materials for rechargeable batteries, tools, catalysts and several other applications.
The Sustainable Procurement Framework for Cobalt covers Umicore’s cobalt purchases worldwide. The
Framework is aligned with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals
from Conflict-Affected and High-Risk Areas. Umicore obtained, for the sixth year in a row, third party
assurance from PwC that its cobalt purchases in 2020 are carried out in line with the conditions set out

Umicore supported the development of the Cobalt Industry Responsible Assessment Framework (CIRAF)
within the Cobalt Institute. The CIRAF is a management framework for risk assessment and mitigation
aiming at ensuring responsible cobalt production and sourcing. As part of the CIRAF, risks regarding
own operations and supply chain must be analyzed. Following the recommendations of the framework,
Umicore performed a risk analysis of its 8 cobalt-related operations considering the risks identified by the
CIRAF and the results of our own materiality analysis and of our internal Business Risk Assessment. The
material risks for our operations are (1) Air-water-soil pollution & energy efficiency; (2) OHS and working
conditions; (3) Conflict & financial crime; (4) Human rights abuses. Umicore has policies and measures inplace covering these risk areas (see Management Approach). Key performance indicators are reported
yearly (see Environmental and Social statements). With respect to “supply chain”, Umicore’s approach isaligned with the level 3 requirements of the CIRAF, moving from level 2 in 2019 as all the risks, including
biodiversity and resettlement risks, are now covered.
The compliance report for 2020, including the CIRAF report, is available online.
UMICORE.COM/SUSTAINABLE-COBALT

Umicore Integrated Annual Report 2020

Statements
Umicore continued its engagement with the Global Battery Alliance and supported the transition to anindependent entity. Via its engagement in the Cobalt Action Partnership, Umicore supports a coordinatedapproach for local interventions in mining communities in the Democratic Republic of Congo.
Umicore participated in the Battery Passport project of the Global Battery Alliance, which aims to delivera digital sustainability record for batteries. Together with many stakeholders of the battery value chain,
Umicore supported the development of KPIs to represent the sustainability of the battery supply chain(including environment and human rights).
In 2018 Umicore implemented, besides its continued engagement in sustainable cobalt sourcing, due
diligence in the supply of the other raw materials for batteries, i.e. nickel, manganese and lithium. The
approach is directly inspired by the experience with cobalt and follows the basic steps of the Sustainable
Procurement Framework for Cobalt. Specific mitigation actions have been defined for these metals
depending on the identified risk.
2.2 GOLD AND SILVER
In 2020, Umicore continued to ensure that operations with a production of gold are certified asconflict-free. Umicore operations in Hoboken, and Pforzheim are certified as conflict-free smelters for goldby the London Bullion Market Association (LBMA). The LBMA also provides certification for responsible
silver and the sites of Hoboken, Pforzheim and Bangkok are accredited refiners by the LBMA. The Jewelry& Industrial Metals operations in Pforzheim, Vienna and Bangkok are certified as part of the Responsible
Jewelry Council’s (RJC) Chain of Custody program for gold.
2.3 PLATINUM, PALLADIUM & RHODIUM
Since 2020, the LBMA audit for compliance against the Responsible Platinum and Palladium Guidanceis mandatory for the London Platinum and Palladium Market (LPPM) accredited producers of platinum
and palladium plates and ingots. As there is currently no official due diligence certification scheme forplatinum and palladium sponge, UPMR went for these precious metals for a voluntary audit based on therequirements of the LBMA responsible sourcing program. The Jewelry & Industrial Metals operations in
Pforzheim, Vienna and Bangkok are certified as part of the Responsible Jewelry Council’s (RJC) Chain of
Custody program for recycled platinum, palladium and/or rhodium.

184

previous year, it was down to roughly 5% of the total spend. Half of indirect procurement spend is handled
by the Procurement & Transportation teams in Belgium and Germany.
3.1 SCOPE
The indicators presented are based on 2020 data from our Procurement & Transportation teams in
Belgium and Germany and Poland. EcoVadis, a well-known collaborative platform providing Supplier
Sustainability Ratings, is also used by the local procurement team in Brazil.
3.2 ASSESSMENT OF SUPPLIERS
Since 2017, a quick scan based on criteria such as size, geographical location and type of product or service
provided is systematically used for the assessment of new suppliers. This tool determines the need for
an EcoVadis assessment. This tool was first implemented by the teams in Belgium and Germany, and in2020 it was also used by the team in Poland. In 2020, 484 quick scans have been initiated. The goal is tofurther roll-out to more teams worldwide in the future.
Sustainability performance of specific suppliers is assessed by EcoVadis.
101 assessment scores were made available to the teams in 2020, including the requests from theProcurement & Transportation teams in Brazil. A total of 417 scores have been received since the start ofour collaboration with EcoVadis. This represents the number of unique suppliers that have been assessedand does not consider the regular re-assessment of a supplier.
3.3 AVERAGE SCORE OF SUPPLIERS BY TOPIC IN 202082% of the assessed suppliers in 2020 reached a score of 45 or higher, suppliers “engaged in CSR”
(Corporate Social Responsibility). None of the scores received in 2020 indicates a “high risk”.
Suppliers' score in Ecovadis assessment
1-24: high sustainability risk

0%25-44: some basic steps made on sustainability issues

18%45-64: appropriate sustainability management system52%

65-84: advanced practices on sustainability

30%

85-100: outstanding sustainability management systems

0%

V3 INDIRECT PROCUREMENT
While the metal-bearing raw materials are purchased directly by the business units (direct procurement,
see note V2 for specific sustainable supply related actions), Umicore’s worldwide purchasing andtransportation teams take care of the energy and other goods and services which are referred to as
indirect procurement. In 2020, though indirect procurement spend remained stable compared to the

Umicore Integrated Annual Report 2020

Statements
SUPPLIERS’ SCORE INECOVADIS ASSESSMENT

185

4.2 RESOURCE EFFICIENCY
Primary raw materials: are materials that have a direct relation to their first lifetime hereby excluding
streams of by-products%

Secondary raw materials: are by-products of primary material streams
score 25-44 | 18
score 45-64 | 52score 65-84 | 30
score 85-100 | 0End-of-life materials: are materials that have ended at least a first life cycle and will be re-processed
through recycling leading to a second, third… life of the substance
Incoming materials are regarded as primary by default if their origin is unknown. The collected data areexpressed in terms of total tonnage of incoming material.

0%

RESOURCE EFFICIENCYSUPPLIERS’ SCORE IN ECOVADIS ASSESSMENT

%

Group
Environmental

58.9

Labor and Human Rights

58.8

Fair business practices

52.0

Suppliers50.1

Overall

56.6

Primary materials| 36
Secondarymaterials | 49
End-of-lifematerials | 15

The overall score is a weighted average of the 4 theme scores.
More information on Umicore’s relationship with suppliers can be found in the Stakeholder
Engagement(p. 16) and in the Value Chain and Society performance review(p. 39).

V4 PRODUCTS AND SERVICES
4.1 ECOVADIS CSR RATINGThe Umicore Group was re-evaluated by EcoVadis and was awarded its first Platinum Medal in Corporate
Social Responsibility (CSR), with a score of 73/100. This result includes our company among the top 1%
performers evaluated by EcoVadis.
To see Umicore's EcoVadis CSR scorecard, see:In 2020, 64% of the materials were from end-of-life or secondary origin while 36% were of primary
origin, respectively, compared to 60% and 40% in 2019. This ratio results from the combined effect of the
COVID-19 on the global automotive industry and higher processed volumes in Recycling.
4.3 PRODUCTS AND SERVICES CONTRIBUTING TO SPECIFIC SUSTAINABILITY ASPECTS
Our primary focus in terms of sustainable products and services is to leverage activities that provide
solutions to the megatrends of clean mobility and resource scarcity. For more information, please referto Value chain and society(p. 39).
We developed an indicator to underline our focus on clean mobility and recycling.

ECOVADIS-SCORECARD-2020.PDF

The 2020 rating is an improvement on Umicore’s previous Gold rating (top 5% of peers), demonstrating
Umicore’s continued commitment and efforts for an improved performance in all four sustainability
themes (environment, labor and human rights, ethics and sustainability procurement). Umicore has beenassessed by EcoVadis since 2013.

Umicore Integrated Annual Report 2020

Statements

In Korea, Umicore is actively involved in preparation for the first Korea REACH registration deadline endof 2021 including Lead Registrant roles. Umicore has submitted 2 registrations in Korea in 2020 for priority
chemical substances.

REVENUES FROM CLEAN MOBILITY
AND RECYCLING
%

78
65%

54

2016

67%

2017

72%

2018

75%

186

77%

Umicore prepared for arising international regulations like for Turkey and Russia by submitting pre­registrations/notifications. Umicore is also preparing for compliance with UK-REACH.

V5 DONATIONS
2019

2020

Business units continue to develop specific solutions for sustainability aspects of our products and theirapplications in close relationship with customers. Typical subjects dealt with in such developments are
the reduction of risks related to the use of products, reduction of the hazard of products or a higher
material efficiency in the delivery or the use of our products.
4.4 MANAGEMENT OF PRODUCT REGULATIONWorldwide, Umicore ensures regulatory compliance for the products it puts on the market. Changes
to existing product related legislation as well as the introduction of new legislation, might impact
our business. In terms of the REACH legislation and the newly proposed concepts such as the
Chemical Strategy on Sustainability in the EU, Umicore closely monitors all changes in the regulation,
in interpretation as well as guidance documents that might affect its REACH implementation strategy.
Umicore is actively involved in industry association working groups to ensure a consistent approach isfollowed and the metal specifics are understood by the regulators and the companies.

SCOPE
The indicators presented are based on data from fully consolidated companies. The historical numbers(2016 and before) were not restated.

GROUP DATA
2016

2017

2018

2019

Cash donations€ thousand

unit

1,078.03

1,151.46

1,287.22

1432.68

1346.28

2020

Donations in kind

€ thousand

167.47

60.47

66.10

78.95

159.19Staff freed time

€ thousand

44.17

87.40

78.34

102.02

11.74

Total donations€ thousand

1,289.68

1,299.34

1,431.66

1613.651517.21

Umicore actively supports the engagement of the metals sector with ECHA in the Metals/inorganics
sectorial approach (MISA).
Umicore engaged with the cobalt industry in managing the EU cobalt metal harmonized classification andcontinues to be engaged in the Annex XV proposal on the restriction of 5 cobalt salts. This process has nofinal outcome yet and continues into 2021.
In 2020, we submitted 27 additional substances for registration under REACH due to new
business developments.
As part of regular maintenance, we updated 76 REACH dossiers among others to change the tonnage
band, to reply to ECHA requests and to include new information.

Donations are subdivided into cash donations, donations in kind and staff time.
Each business unit is expected to allocate an annual budget that provides sufficient donations andsponsorship support to each site’s community engagement program. By way of guidance, this budget
should equal to an amount corresponding to one third of 1% of the business unit’s average annual
consolidated adjusted EBIT (i.e. excluding associates) for the 3 previous years. Most of the donations fromthe business units go to charity events close to their sites, in support of the local community.

Umicore Integrated Annual Report 2020

Statements

187

At Group level, the budget is set at the discretion of the CEO and the donations are coordinated andmanaged by a Group Donations Committee reporting to the CEO. Group donations focus on projects withan international scope with priority given to initiatives that have a clear link with sustainable development
and with an educational component.

REGIONAL DATA
unit
Total
€ thousand
donations

Europe1,215.05

North
America
86.34

South
America

Asia-Pacific

Africa

92.19

87.50

36.13

Energy &SurfaceTechnologies

Recycling

Corporate

244.81

297.27772.56

UmicoreGroup
1,517.21

BUSINESS GROUP DATA
unit

Total donations€ thousand

Catalysis202.57

UmicoreGroup
1,517.21

In 2020, the Group donations included a substantial contribution to the Fund for the Prevention of Child
Labour in Mining Communities – A Global Battery Alliance Collaboration. Other Group donations in 2020
included donations to UNICEF educational projects in Madagascar and in India, projects coordinatedby Entrepreneurs for Entrepreneurs in Mali, Ecuador and Bolivia and support for student sustainablemobility projects.
In 2020, Umicore contributed a total of € 1.5 million in donations. This was slightly below the level ofdonations in 2019, due to a reduced level of local community fundraising activities in the context of the
COVID-19 pandemic. This was also the case for the decrease in staff freed time with citizens being asked tostay at home. Donations in kind, however, increased, as Umicore donated ventilator machines to hospitals
and supported hospitals, care homes and home nurses with surgical masks and cleaning material in theirfight against COVID-19, as well as food baskets for local communities.

Umicore Integrated Annual Report 2020

Statements

188

Environmental statements
ENVIRONMENTAL KEY FIGURES

189

E3

GREENHOUSE GASES

192

E6

WASTE

195

E1

SCOPE OF ENVIRONMENTAL STATEMENTS

189

E4

ENERGY192

E7

HISTORICAL POLLUTION

195

E2

EMISSIONS TO WATER AND AIR

189

E5

WATER USE

194

E8REGULATORY COMPLIANCE AND MANAGEMENT SYSTEM

197

Umicore Integrated Annual Report 2020

Statements

ENVIRONMENTAL
KEY FIGURES
unit
Metal emissions to water (load)kg

Metal emissions to water(impact units)
Metal emissions to air (load)kg

Metal emissions to air (impact units)

189

E1 SCOPE OF ENVIRONMENTAL STATEMENTS

notes

2016

2017

2018

2019

2020

E2

3,738

1,437

1,861

2,052

2,695

E2

339,001

125,688

144,657

174,725

296,432

E2

1,761

1,829

1,564

864

984

E2

86,09884,46388,04452,492

57,696

SOx emissions

tonne

E2

892

661

657

531

389

NOx emissions

tonne

E2

365

320

304

280

239

CO2e emissions (scope1+2) Market based

tonne

E3

662,059

633,704

767,702791,896

732,543CO2e emissions (scope1+2) Location based1

tonne

E3

735,065

663,307785,789

815,175

747,964

Energy consumption

terajoules

E4

6,737

6,532

7,458

7,476

7,591

Renewable energy

%

E4

-

-

-

14

15

Water usethousand
m3

E5

4,851

4,755

5,885

6,208

7,813

Total waste produced

tonne

E7

77,62572,80478,77868,31799,434

Hazardous waste

tonne

E7

59,43755,44258,75947,58978,055of which recycled

%

E7

3.8

4.3

5.3

7.9

5.0

Non hazardous waste

tonne

E7

18,18817,37320,01820,72821,379of which recycled

%

E7

57.8

58.2

62.2

59.4

64.7

Compliance excess rate

%

E9

0.95

0.10

0.14

0.10

0.15

Environmental complaints

N°

E9

19

34

29

33

80

Sites ISO 14001 certified

%

E9

88

92

91

95

96

The environmental key figures include data from consolidated industrial sites where Umicore has
operational control. The following sites are no longer reported compared to 2019: Beijing (China;
Electro-Optic Materials) and Rheinfelden (Germany; Automotive Catalysts). The following sites wereadded to the environmental reporting scope in 2020: Songdo (South Korea; Precious Metals Chemistry)
and Kokkola (Finland; Rechargeable Battery Materials). As in 2019, the total number of consolidated
industrial sites that report environmental data in 2020 is 55.
Within the scope of Umicore’s reporting framework, most of the sites report their environmental dataat the end of the third quarter together with a forecast for the fourth quarter. In January, the forecasted
values are checked by the sites for significant deviations and, if needed, corrected. Particular emphasis
was put on this data check during 2020 due to the potential impact that COVID-19 may have had on the
production rates across the year. The 7 sites with the largest environmental impact for 2020 are: Hanau(Germany; Catalysis, Recycling), Olen (Belgium; Energy & Surface Technologies, Corporate R&D), Hoboken(Belgium; Recycling), Jiangmen (China; Energy & Surface Technologies), Cheonan Site 1, Cheonan Site
2/3 (both Korea; Energy & Surface Technologies), and Kokkola (Finland; Energy & Surface Technologies).
With the exception of Kokkola, these sites report their full year figures in 2020. The Kokkola site will also
report full year data from 2021 onwards. A sensitivity analysis, undertaken for the 2020 data on energy
consumption data, indicates that the potential deviation of the Group environmental performance would
be less than 2% in case of a 20% error in the forecasted data.
Please note that due to improved analytical and reporting methods, some of the data published in the2019 annual report has been restated in the 2020 report. Unless mentioned otherwise, environmental key
performance indicators (KPIs) for 2015 include the business unit Zinc Chemicals that was divested during
2016, while 2016-2020 KPIs do not include Zinc Chemicals. Likewise, environmental KPIs for 2015-2016
include the business unit Building Products that was divested during 2017, while 2017-2020 KPIs do notinclude Building Products.

1 CO2e emissions’ data for 2015 is an aggregation of market-based and location-based scope 2 emissions. A direct comparison to 2016-2020 data is
not possible. If such comparison were to be made, the most meaningful approximation is to use the market-based 2016-2020 figures (see section
E3 for details).

E2 EMISSIONS TO WATER AND AIR

Data for 2015 includes the divested business unit Zinc Chemicals, while data for 2016-2020 does not. Data for 2016 and previous years includes the

Umicore’s Vision 2015 achievements of reducing our metal emissions to water and air from point sourcesin terms of impact by 26% and 37%, respectively, marked a great step towards sustainable operations.
We consider the emission levels achieved in 2015 as our frame of reference in the context of sustainable
operations that include the management of the emissions to water and air.

divested business unit Building Products, while data for 2017-2020 does not.

The aim for Horizon 2020 was to build on the Vision 2015 achievements by reducing the impact of metal
emissions while considering growing volumes of production. In practice, this means that we aimed to at

Umicore Integrated Annual Report 2020

Statements

190

least maintain the level of metals emitted to water and air in terms of impact that we achieved as partof Vision 2015.

of activity parameters at sites are: tonnes produced per year, machine hours per year, tonnes of input
material in recycling process per year.

Metal emissions to water are defined as the total amount of metals emitted after treatment to surface
water from effluent(s) expressed in kg/year. If sites make use of an external wastewater treatment plant,
the efficiency of that treatment is considered if known to the site.

ExampleIn 2015, site A produced 20 t of product X and emitted 5 kg of metal Y (impact factor of Y = 8 impact
units/kg) to air, resulting in a metal emissions intensity of 2 impact units/t of product X. In 2020, site A
produced 22 t of product X and emitted 5 kg of metal Y, resulting in a metal emissions intensity of 1.8
impact units/ton of product X.

Metal emissions to air are defined as the total amount of metals emitted to air in solid fraction by all
point sources expressed in kg/year. For mercury and arsenic, additional vapor/fume fractions are counted
as well.
For each of the metals emitted to water and air, an impact factor is applied to account for the different
toxicity and ecotoxicity levels of the various metals when they are emitted to the environment. The
higher the impact factor, the higher the toxicity is to the receiving water body (for water emissions) or
to human health (for air emissions).
The impact factors for water emissions are based upon scientific data generated (“predicted no effectconcentrations” or PNECs) for the REACH regulation. An impact factor of 1 was attributed to the antimony
PNEC of 113 μg/l. The impact factors for emissions to air are based upon the occupational exposure limits(OEL) (reference: American Conference of Industrial and Governmental Hygienists, 2011). An impact factorof 1 was attributed to the zinc (oxide) OEL of 2 mg/m³. Subsequently, an impact factor for all relevant
metals was calculated based upon these references. The metal impact to air and to water is expressed
as “impact units/year”.
We identified the sites that contribute at least 95% in terms of load (for SOx and NOx) or impact units (formetals emissions to water and air) of the total 2015 Group figures (excluding the divested business unit
Zinc Chemicals). For emissions to water and air, data collection for 2020 was restricted to the identified
material sites (10 or fewer). All other sites were requested to only submit data in case of significant
upward deviations from the 2015 baseline for the site.
The improvement on 2015 levels of metal emissions to water and air is measured by comparing emissionsof the current reporting year (i.e., 2020) with those of the reference year 2015 and using the same scopeof activities as 2015 for the material sites.
To calculate the change in metal emissions to water and air in comparison with the reference year 2015, a
baseline has been established for each site in scope. The baseline is established by multiplying the actual
activity level of the current reporting year (i.e., 2020) by the 2015 emission intensity (see example below).
The baseline 2015 is then calculated by adding up all site-level baselines for the sites in scope. Examples

The 2015 baseline reported in 2020 is then: activity level of 2020 (22 t) x 2015 emissions’ intensity (2impact units/t) = 44 impact units.
Therefore, the measured 5 kg – equivalent to 40 impact units – emitted in 2020 represents a reduction of
10% compared to what it would have been under 2015 operating conditions.
The 2015 baseline is recalculated yearly (2016-2020). It is defined as the metal emissions that would havebeen expected with the activity volumes of the reporting year (i.e., 2020), but with the metal emissions
intensity of the reference year 2015. The performance for each year is expressed as a percentage incomparison to the calculated 2015 Group baseline applicable to each year.
The calculation of metal emissions to water and air covers fully consolidated operations and activities thatare part of the Group during the reporting year (2016-2020) and that were also part of the Group in 2015.
Performance is reported only for the total of the material sites for each KPI.
SOx and NOx emissions are expressed in absolute numbers in tonnes/year.
2.1 GROUP DATA – EMISSION SCOPE METAL EMISSIONS TO AIR AND WATER

unit

baseline2015 inrelation to
2020

2016

2017

2018

2019

2020

Metal emissions to water

impactunits

352,638

339,001

125,688

131,723

152,105

143,788

Metal emissions to air

impactunits

121,392

86,09884,46387,66451,541

40,626

Umicore Integrated Annual Report 2020

Statements
METAL EMISSION REDUCTIONPERFORMANCE (TO AIR)METAL EMISSION REDUCTIONPERFORMANCE (TO WATER)

%

%

70

54

70
59

30

2016¹

100

2017²

41
2018³

2019⁴

2020

1 Baseline 2015 in relation to 2016 was 123,831, leading to a reductionof 30% in 2016 in comparison with 2015.
2 Baseline 2015 in relation to 2017 was 144,049, leading to a reductionof 41% in 2017 in comparison with 2015
3 Baseline 2015 in relation to 2018 was 163,101, leading to a reductionof 46% in 2018 in comparison with 2015.
4 Baseline 2015 in relation to 2019 was 124,403, leading to a reductionof 59% in 2019 in comparison with 2015.

20

the metal load and impact from the site in 2020. Efforts are underway to improve the underlying data andarrive at a more realistic calculation of the metal emissions to water at the site, which is expected to yield
lower metal loads in 2021 and thereafter for the Kokkola site.

99

33
2016¹

31

29

2017²

2018³

191

43

41

2019⁴

2020

1 Baseline 2015 in relation to 2016 was 343,649, leading to a reductionof 1% in 2016 in comparison with 2015
2 Baseline 2015 in relation to 2017 was 409,691, leading to a reductionof 69% in 2017 in comparison with 2015.
3 Baseline 2015 in relation to 2018 was 453,075, leading to a reductionof 71% in 2018 in comparison with 2015
4 Baseline 2015 in relation to 2019 was 356,940, leading to a reductionof 57% in 2019 in comparison with 2015

2.2 METAL EMISSIONS TO WATER
The metal emissions to water in 2020, using the defined scope, resulted in 143,788 impact units. Metal
emissions to water in 2015, using the defined scope, resulted in 290,714 impact units. To assess progresson our commitment, this 2015 metal emissions level normalized for 2020 activity levels was 352,638
impact units. In 2020, we have therefore achieved a 59% reduction of metal emissions to water in termsof impact for the defined scope compared to 2015.
This evolution between 2015 and 2020 can be largely attributed to our Hoboken plant (Belgium,
Recycling), where the increased efficiency of the wastewater treatment plant at the site, due toinvestments in improvement projects over the last years, has paid off. In addition, some efficiency
improvements and scale-effects – after further capacity increase of precursor production at our Cheonan
Site 2/3 (Korea, Energy & Surface Technologies) – have contributed to the decrease of the emission
intensity in terms of impact by metals emissions to water.
In terms of total absolute load and impact (not activity-corrected) for the Group in comparison with 2019
levels, 2020 metal emissions to water have seen a marked increase by 31% and 70%, respectively. Thisis for the most part due to the addition of the site in Kokkola (Finland; Rechargeable Battery Materials).
While the site is well within their legal discharge limits, the nature of the industrial processes andthroughput of water at the site leads to a notable increase of the absolute metal load and impact for
the Umicore Group. As this is the first year of reporting of the Kokkola site under Umicore, the site’s dataon efficiency of wastewater treatment and on metal load effectively discharged to the environment iscurrently limited. Therefore, a very conservative approach was chosen, leading to an overestimation of

2.3 METAL EMISSIONS TO AIR
The metal emissions to air in 2020, using the defined scope, resulted in 40,626 impact units. Metal
emissions to air in 2015, using the defined scope, resulted in 117,918 impact units. To assess progress on
our commitment, this 2015 metal emissions’ level normalized for 2020 activity was 121,392 impact units.
In 2020, we have therefore achieved a 67% reduction of metal emissions to air in terms of impact for thedefined scope.
The reductions are observed across many sites in scope to a varying degree and can be ascribed
for the most part to further efforts that improved air filter efficiency and to improvements in overall
process efficiency.
2.3.1 LEAD EMISSIONS AT HOBOKEN (BELGIUM, RECYCLING)
In 2015, infrastructure works at the roof of the lead refinery led to increased lead deposition in thesurrounding residential area of Moretusburg. Consequently, the biological monitoring results showed
an increased number of children with levels of lead in blood above the recommended reference levelof 5 microgram/dl blood (Center for Disease Control and Prevention, USA). This biological monitoring
campaign is conducted twice a year by the local authorities.
While during the 2020 spring blood sampling campaign, the average lead levels among children in theneighborhood rose to 6.01 microgram/dl blood, this average again decreased during the fall campaign to4.12 microgram/dl blood. Comparing the fall biological monitoring campaigns, in 2020 26% of the children
still had levels of lead in blood above the reference value of 5 µg/dl, compared to 18% in 2019. The site
continues its emission reduction action plan to further reduce the number of children who show levelsof lead in blood above the reference value in close collaboration with the local and regional authorities
2.4 GROUP DATA – OTHER EMISSIONS
unit

2016

2017

2018

2019

2020

SOx emissions

tonne

892

661

657

531

389

NOx emissions

tonne

365

320

304

280

239

The SOx emissions for the Group reduced by 27% from 531 t in 2019 to 389 t in 2020, mainly due
to improvements and changes in process setup at Hoboken (Belgium, Recycling). The NOx emissions
decreased from 280 t in 2019 to 239 t in 2020, a 15% reduction.

Umicore Integrated Annual Report 2020

Statements
E3 GREENHOUSE GASES
The introduction of our energy efficiency and carbon footprint policy in 2011 guided us to a 26% reduction
in CO2 equivalent (CO2e) emissions within the defined scope in Vision 2015 and to permanent attention
and awareness of energy efficiency at the sites and in the business units’ management processes.
Under Horizon 2020, Umicore’s improvement focus is on energy efficiency. The efforts to increase energy
efficiency are expected to contribute to further reducing our carbon footprint.
Umicore reports its absolute CO2e emissions as per the scope outlined in E1. The absolute CO2e emission
volumes are calculated using the Greenhouse Gas Protocol definition and reporting methodology forscope 1 and 2 (WBCSD and WRI 2004 and amendment for scope 2 of 2015). Scope 2 for Umicore includes
not only purchased electricity but also steam and compressed air purchased from third parties (e.g., fromindustrial parks). CO2e includes the greenhouse gases CO2, CH4 and N2O for scope 1 and major process
emissions. Other greenhouse gases are not relevant in Umicore’s operations. The scope 2 emissions takeonly CO2 into account.
The calculation of scope 2 emissions for each site is done in 2 ways: once using market-based CO2
emission factors and once using location-based CO2 emission factors. The market-based emission factors
allow calculating the CO2 emissions based on the specific contracts that sites have in place with theirenergy suppliers, considering the relevant energy mix for these contracts (including green energy
attributes, where applicable). The location-based CO2 emission factors facilitate calculating the CO2
emissions based on the residual energy mix in a country/region (where this data is available), thus
explicitly excluding green energy attributes that are sold by the power producers in dedicated supply
contracts. The total CO2 emissions for the Group are then presented as 2 separate values based on thisdifferentiation and the metrics are abbreviated as: CO2e market-based and CO2e location-based.
The WBCSD Chemical Sector Working Group on GHG Measurement and Reporting established additional
guidance to cope with observed anomalies in GHG reporting. Umicore has implemented these guidelines
already since the 2012 reporting. The publication of the sector guidelines can be found on their website.
3.1 GROUP DATA
unit

2016

2017

2018

2019

2020

CO2e emissions(scope1+2) Market based

tonne

662,059

633,704

767,702791,896

732,543CO2e emissions(scope1+2) Location based

tonne

735,065

663,307785,789

815,175

747,964

192

Total CO2e market-based emissions in 2020 were 732,543 t. Total CO2e location-based emissions were
747,964 t. The difference between these 2 figures, 15,421, is due to specific energy contracts with afavorable energy mix that our sites have in place, which result in a lower carbon footprint than the residualenergy mix for the country/region that the site is located in.
Total CO2e market-based emissions in 2019 were 791,896 t, and total CO2e location-based emissions in2019 were 815,175 t.
For market-based CO2e emissions, the 2020 emission levels have decreased by 7% in comparison with2019. This can be attributed to a large extent to the installation of a nitric acid plant at Hoboken (Belgium;
Precious Metals Refining), which reduces the direct process emissions of N2O. In addition, lower activity
levels in the business unit Rechargeable Battery Materials also resulted in reduced CO2 emissions.
Changes to process setup and switching to green energy contracts at several sites have also contributed
to this trend. Compared with 2015, we observe an increase of 3% in total market-based CO2e emissions,which is due to a complex interplay of many factors over this 5-year period, among which the acquisitionand setup of new sites, divestiture of entire business units, changes to process setup and production
capacity and fluctuation in CO2 emission factors for acquired energy.
3.2 BUSINESS GROUP DATA

unit

Catalysis

Energy &SurfaceTechnologies

Recycling

UmicoreGroup

CO2e emissions (scope1+2) - Market based tonne

133,127

323,829

274,973732,543CO2e emissions (scope1+2) Location based

151,360

349,276

246,714

747,964

tonne

E4 ENERGY
Umicore is committed under Horizon 2020 to an even more efficient use of energy in its operations. In
practice, this means that we aim to further increase the energy efficiency level that we achieved as partof Vision 2015.
The WBCSD Chemical Sector Working Group on GHG Measurement and Reporting established additional
guidance to cope with observed anomalies in GHG and energy reporting. Umicore has implemented theseguidelines already since the 2012 reporting. Publication of the sector guidelines can be found on the
WBCSD website.
In the scope of Horizon 2020, a greater emphasis is on those sites that are contributing the most to
Umicore’s total energy consumption, and certain parameters, such as activity indicators, have been

Umicore Integrated Annual Report 2020

Statements
thoroughly reviewed for those sites and updated where required. Monitoring and reporting of the energy
consumption continue to be done at all sites. The larger contributors are additionally encouraged andrequired to report on their energy efficiency projects.
An analysis of the contributions of the sites to the energy consumption at Group level identified 26 sitesthat contributed more than 95% to the 2020 total.
4.1 GROUP DATA – IN THE CONTEXT OF THE ENERGY EFFICIENCY OBJECTIVE
The aim of improving on 2015 levels of energy efficiency is measured by way of comparing the energy
consumption of the current reporting year (i.e., 2020) with the energy consumption of the reference year
2015 and using the same scope of activities as 2015.
To calculate the change in energy consumption in comparison with the reference year 2015, a baseline has
been established for each site in scope. The baseline is established by multiplying the actual activity levelof the current reporting year (i.e., 2020) by the 2015 energy intensity (see example below). The baseline
2015 is then calculated by adding up all site-level baselines for the sites in scope. Examples of activity
parameters at sites are: tonnes produced per year, machine hours per year, tonnes of input material inrecycling process per year.
ExampleIn 2015, site A produced 200 t of product X and consumed 80,000 GJ, resulting in an energy intensity of
400 GJ/t of product X. In 2020, site A produced 220 t of product X and consumed 80,000 GJ, resulting inan energy intensity of 364 GJ/t of product X.
The 2015 baseline reported in 2020 is then: activity level of 2020 (220 t) x 2015 energy intensity (400 GJ/t)= 88,000 GJ.
Therefore, the 80,000 GJ consumed in 2020 represents an improvement of 10% compared to what it
would have been under 2015 operating conditions.
The baseline 2015 is recalculated yearly (2016-2020). It is defined as the energy consumption that would
have been expected with the activity volumes of the reporting year (i.e. 2020), but with the energy
intensity of the reference year 2015. The performance for each year is expressed as a percentage incomparison to the calculated 2015 Group baseline applicable to each year.
The calculation of this KPI covers fully consolidated operations and activities that are part of the Groupduring the reporting year (2016-2020) and that were also part of the Group in 2015. Therefore, the sites ofthe former business units Zinc Chemicals and Building Products and a few other individual sites, none ofwhich are with Umicore anymore, are not in the reporting scope of this KPI. Likewise, several sites that193

joined Umicore in 2016-2020 are therefore also not included in the reporting scope for this KPI. The energy
consumption data also include our corporate headquarters in Brussels (Belgium).
4.2 ENERGY EFFICIENCY OBJECTIVE

Energy consumption

unit

baseline2015 inrelation to2020

terajoules

6,900

2016

2017

2018

2019

2020

6,241

6,082

6,183

6,138

5,697

NORMALISED ENERGY CONSUMPTION
%

100
94

80
60

79
71

2016¹

2017²

2018³

77

2019⁴

83

2020

1 Baseline 2015 in relation to 2016 was 6,664 TJ, leading to a reductionof 6% in 2016 in comparison with 2015.
2 Baseline 2015 in relation to 2017 was 7,720 TJ, leading to a reductionof 21% in 2017 in comparison with 2015.
3 Baseline 2015 in relation to 2018 was 8,692 TJ, leading to a reductionof 29% in 2018 in comparison with 2015.
4 Baseline 2015 in relation to 2019 was 7,946 TJ, leading to a reductionof 23% in 2019 in comparison with 2015.

The energy consumption in 2020, using the defined scope, was 5,697 TJ. The energy consumption in2015, using the defined scope, was 5,487 TJ. To assess progress on our commitment, this 2015 energy
consumption level normalized for 2020 activity was 6,900 TJ. This means that for equivalent productionlevels, we consumed 17% less energy. In other words, the energy efficiency has improved by 17% in 2020
compared to the reference year 2015.
This improvement is mainly due to scale effects in connection with the ongoing capacity increase at
our Rechargeable Battery Materials’ site in Korea. Further efficiency improvements and consolidations atsome other sites also contributed to the overall decrease in energy intensity.

Umicore Integrated Annual Report 2020

Statements

194

Energy efficiency projects have been implemented at the most important sites in line with foregoingsustainable development objectives since 2006. In 2020, 26 sites represented more than 95% of theGroup’s energy consumption. At 15 of these sites, 38 energy efficiency projects have been reported as
being implemented during 2020 and contributed significant energy savings.

purchased energy. While some indicators for renewable energy have been used in previous years forinternal evaluation, 2019 marked the first year in which we have systematically obtained informationfrom our sites on the percentage of renewable energy in the energy mix used for purchased electricity,
based on the particular purchase agreement in place at each reporting entity.

4.3 ABSOLUTE ENERGY CONSUMPTION

The definition of renewable energy as given in the Greenhouse Gas Protocol Scope 2 Guidance (2015amendment) has guided us in defining the scope of this indicator. Only the following energy sources are
considered in scope for this KPI: wind energy, solar energy, energy from biomass (including bio- and othernaturally produced gas), hydropower (including marine hydro) and geothermal energy.

ENERGY CONSUMPTION (ABSOLUTE)

5,000

In 2020, the share of renewable energies for purchased electricity was 15%, up from 14% in 2019. We will
track and report on this KPI in the coming years.

2016
2017
2018
2019
2020

E5 WATER USE
5.1 GROUP DATA0WATER USE

Total energy consumption in 2020 was 7,591 TJ compared with 7,476 TJ in 2019, a slight increase of 2%.
Various changes in production capacity, activity levels and process setup have led to a net balancing ofincreasing and decreasing energy consumption trends at several sites. Compared with 2015, we observe adecrease of 2% in total energy consumption, which is due to a complex interplay of many factors over this5-year period, among which the acquisition and setup of new sites, divestiture of entire business units,
and changes to process setup and production capacity.
Indirect energy consumption by primary energy source (purchased electricity, steam and compressedair) for production sites and office buildings in 2020 was 3,916 TJ. Direct energy consumption by primaryenergy source (fuel, gas oil, natural gas, LPG, coal and cokes) was 3,675 TJ.

10,000

5,000

2016
2017
2018
2019
2020

0
Water use is defined as the total volume of water expressed in thousand m³/year from domestic
water supply, groundwater wells, surface water and rainwater. Groundwater extraction for remediation
purposes and cooling water returned to its original water body are not counted.

4.4 BUSINESS GROUP DATA

unit
Energy consumption

Thousand m3

4,851
4,755
5,885
6,208
7,813

6,737

10,000

6,532
7,458
7,476
7,591

terajoules

terajoules

Catalysis
1,306

Energy &SurfaceTechnologies

Recycling

3,831

2,446

Umicore
Group
7,591

The total water use for the Group increased from 6,208 thousand m³ in 2019 to 7,813 thousand m³ in 2020,
an increase of 26%. The increase in water use is mainly due to the addition of the site in Kokkola (Finland;
Rechargeable Battery Materials).

4.5 RENEWABLE ENERGY
As part of Umicore’s drive to reduce our environmental footprint in the light of continuously striving
for more sustainable operations, Umicore is tracking the contribution of renewable energy sources in

Umicore Integrated Annual Report 2020

Statements

The total volume of non-hazardous waste slightly increased from 20,728 tonnes in 2019 to 21,379 tonnes
in 2020, an increase of 3%. The recycling rate of non-hazardous waste has increased from 59% in 2019
to 65% in 2020.

5.2 BUSINESS GROUP DATA

unit
Water usethousand m3

Catalysis
561

Energy &SurfaceTechnologies

Recycling

5,565

1,686

Umicore
Group
7,813

6.2 BUSINESS GROUP DATA

E6 WASTE

unit

6.1 GROUP DATAHAZARDOUS WASTE
tonnes

18

3,880

17

74,176

16

43,8373,752

55,638 3,121

0

53,067 2,375

50,00057,150 2,287

100,000

19

20

195

Catalysis

Energy &SurfaceTechnologies

Recycling

UmicoreGroup

Total waste produced

tonne

6,332

58,427

34,67599,434

Hazardous waste

tonne

3,396

47,26327,39678,055of which recycled%21.66%

1.95%

8.10%

4.97%

Non hazardous waste

tonne

2,935

11,164

7,280

21,379of which recycled%50.67%

48.60%

95.10%

64.72%

E7 HISTORICAL POLLUTION
Non recycled
Recycled

Waste is defined as the total volume of generated waste expressed in tonnes/year.
The waste recycling rate is the ratio of the waste recovered by third parties (including waste recovered
as energy through incineration) and the total waste.
The distinction between hazardous and non-hazardous waste is made based on the local regulation for
the region where the reporting entity is located.

The history of Umicore goes back more than 200 years. It all started with the coming together of a numberof mining and smelting companies, which gradually evolved into the materials technology and recycling
company Umicore is today. In the mid-1990s, Umicore started a process of divesting its remaining mining
rights as part of its strategic reorientation towards added-value materials and recycling
Umicore’s predecessor companies operated within the boundaries of national mining legislation and in
the context of the environmental standards valid at the time these mines were operational. The closure of
the mines and the restitution of mining concessions to the relevant state authorities has consistently been
carried out in collaboration with the competent authorities and local stakeholders. This process takes into
consideration the specific circumstances of each site. Regarding the downstream industrial smelting andrefining installations, remediation projects are developed in close consultation with other stakeholders to
reduce any risks to an acceptable level as defined by the authorities.

In 2020, a total of 99,434 tonnes of waste were generated compared to 68,317 tonnes in 2019, an
increase of 46%. This increase is due to the addition of the site in Kokkola (Finland; Rechargeable Battery
Materials), where the industrial process generates significant amounts of process residue that is classified
and disposed of as hazardous waste.

Active participation in the management and remediation of risks that have resulted from historicaloperations is an integral part of the Umicore Way. Umicore’s proactive program for assessing andremediating, where necessary, soil and groundwater contamination has made significant progress. The
following section illustrates the main ongoing programs and the progress made during 2020. Due to thecorona pandemic, however, several projects have incurred serious delays.

The total volume of hazardous waste increased from 47,589 tonnes in 2019 to 78,055 tonnes in 2020, an
increase of 64%, due to the abovementioned addition of the Kokkola site. The recycling rate of hazardous
waste has decreased from 8% in 2019 to 5% in 2020.

7.1 BELGIUM
The mining sites in Belgium laid the foundation of our oldest predecessor company, Vieille Montagne. The
mining concession of the same name was granted by the Emperor Napoleon Bonaparte in 1805 and 5

Umicore Integrated Annual Report 2020

Statements

196

more concessions were added over time, all located in eastern Wallonia. The mining activities in Belgium
ceased in the 1950s and extensive rehabilitation work to secure the site was carried out at all concessions
in close consultation with the competent authorities. Four concessions were officially transferred back to
the Government, the retrocession of the others is being processed.

and storage costs and the dedicated environmental provisions once the technical aspects will havebeen determined. Developing and implementing this detailed roadmap is currently expected to takeseveral years. Umicore will in the meantime continue the monitoring works to guarantee that no risks are
emanating from those remnants, neither for the workers on site, nor for the surrounding population.

In addition, over a century of non-ferrous metals production in Hoboken, Olen, Balen and Overpelt
impacted soil and groundwater on the industrial sites and on neighboring lands. In November 1997,
Umicore concluded a voluntary agreement with the Flemish Region of Belgium to deal with this historicalcontamination. On 23 April 2004, Umicore signed an addendum to the 1997 Covenant with the regional
waste authorities (OVAM) and the Regional Minister of the Environment in the Flemish Region of Belgium,in which Umicore committed to spent € 62 million over 15 years for historical pollution remediation onfour sites, two of which – Balen and Overpelt – now belong to Nyrstar, a business that was divested
by Umicore in 2007. In addition, OVAM and Umicore joined forces to remediate historic pollution in the
additional areas surrounding the industrial sites, defined as a 9km perimeter, over 10 years. Both parties
contributed €15 million to a new fund for the remediation work. In 2014, OVAM and Umicore agreed toextend the program an additional 5 years. The covenant came to an end in 2019, but the remedial efforts
at the Umicore sites will continue as long as is necessary.

7.2 FRANCE
Umicore’s predecessor companies operated mines in France since the mid-1800s. The last remaining
mining activities were terminated in the late 1960s to early 1970s, and extensive rehabilitation works
were carried out at the former mining sites, all located in the south of France, during the 1990s. All former
mining concessions in France have been returned to the French government, the last being confirmed byministerial decree in 2005.

In Hoboken, what began as a lead and silver refining operation in 1887 grew to a large industrial plant
extracting precious metals from waste. Over the years, Umicore has replaced heavily contaminatedtopsoil and remediated the historical contamination in the adjacent residential area. In 2017, anagreement was reached with the local authorities to extend the on-site storage facility, so that on-site
topsoil remediation work can restart in 2021. A new groundwater remediation system is planned for 2021.
The actions in Hoboken suffered from delays due to the corona pandemic.
In Olen, the pollution in and around the site is the result of historical production activities of mainly copperand cobalt. As soon as the Covenant was signed, the remediation work on the Olen site began. An on-site
groundwater remediation program started in 2007 is ongoing. In 2020, contaminated soil and buried
waste were further excavated at various locations where infrastructure work was needed.
Between 1922 and 1980, radium and uranium were also produced in Olen. The radium produced forcancer treatment purposes at this site was offered to Nobel laureate Marie Curie for her first experimentswith radioactive material. The radium production plant was demolished during the 1970s and the radium
production waste was confined to an aboveground storage facility, as was the norm at the time. Early
2020, the Federal Agency for Nuclear Control issued guiding principles for the permanent remediationand 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 apermanent storage solution. This exercise will include an update of the estimated future remediation

Mining activity in Saint-Félix-de-Pallières began in the 19th century to exploit a subsoil rich in zincand zinc-derived metals. The former mining concession was closed in 1971 and was secured in fullcompliance with the applicable legislation. The concession was waived in 2004 after the Frenchauthorities acknowledged that all the measures prescribed had been complied with. Despite ending its
mining activity, Umicore has never left the area and regularly monitors the state of a landfill containing
flotation residues and which is still Umicore’s property. To guarantee safe and stable conditions of thelandfill on a long-term basis, Umicore has started extensive refurbishment works in 2020, be it with aserious delay due to the corona pandemic. In recent years, more attention has been focused by certain
stakeholder groups on the potential health effects linked to the former mining activities. Despite having
complied with all the requirements of the administration at the time of the termination of the mining
activities, Umicore received in 2018 official injunctions to tackle 3 other areas at Saint-Félix, which are
not under the ownership of Umicore. Although Umicore appealed against the notices, at the end of
November 2019 it presented a feasibility study to address the 3 areas, as requested At the end of 2020,
the Administrative Tribunal in Nîmes annulled all the injunctions on the basis that Umicore complied withall the legal requirements at the time of the transfer of the mining concessions. The tribunal added that
all responsibilities are now with the State..
In Viviez, the pollution in and around the site is the result of historical production activities related tozinc production started in 1855. Umicore invested € 40 million in completing a large-scale remediation
program from 2011 to the end of 2016 and has transferred the post-remedial obligations to a third party.
Although soil contamination results from various sources, Umicore, together with other partners, joined avoluntary program in 2017 to address the soil contamination identified in the private gardens around theViviez site. Data collection was performed in 2017 and 2018 and appropriate measures have been definedby a dedicated expert panel, put in place by the competent authorities. Umicore is currently preparing theworks that will be executed in 2021.

Umicore Integrated Annual Report 2020

Statements
7.3 USAIn 1980, Umicore’s predecessor company acquired an abandoned silver-gold mine at Platoro in the Rocky
Mountains in Colorado. Subsequent exploration drillings were unsuccessful and any attempts to further
exploit the mine were stopped.
Remedial work started in the 1990s, consisting of capping and landscaping waste rock piles and installinga water treatment plant to capture and treat the acid mine drainage that continuously flows out of
the mine. The mining site is in a nature recreation area. Umicore continues to manage the site andtreat drainage water to meet the stringent environmental requirements. Umicore built a new modern
waste water treatment facility in 2018 to further decrease the metal concentration in the discharge anddecrease the volume of solid waste produced. Umicore/Union Gold received in 2019 a proposal for a
new effluent permit, including very stringent limits for arsenic, to be attained in 2024. Union Gold took
immediate action to contest the proposal arguing that reaching such limits is not technically feasible. The
competent authorities accepted the arguments and recommended to apply for a less stringent permit
modification. At the same time, Union Gold tested extra polishing steps in the waste water treatment
plant in preparation to the application of a permit variance by 2023.
From 1980 to 2010, Umicore operated a cobalt-producing facility in Maxton, North Carolina. After theclosing and the demolition of the Maxton plant, soil and groundwater contamination was identified.
Umicore entered a voluntary remediation program with the authorities to fully address the issue by 2033.
A comprehensive groundwater remediation through pump and treat has been put in place and is showing
its effectiveness to reach the forecasted end date.
7.4 BRAZIL
Umicore acquired industrial units in the cities of Americana (SP), Guarulhos (SP) and Manaus (AM)in Brazil in 2003. During an environmental assessment that was performed following the acquisition,
groundwater pollution was detected at the Guarulhos site. This historical pollution dates from before
Umicore’s purchase of the operations. Umicore took immediate measures to stop the spreading of thiscontamination to the neighboring areas by installing a hydraulic barrier that has been in full operation
since 2011. Targeted extraction systems were put in place on site to speed up the remediation. The closureof the industrial activities from the Guarulhos site to Americana and the partial demolition of the buildings
in 2021, will allow to tackle the core of the contamination even better. Due to the corona pandemic, themove to Americana was delayed, which in turn also delayed the demolition of the building in Guarulhos
and the speed up of the groundwater remediation.

197

E8 REGULATORY COMPLIANCE AND MANAGEMENT SYSTEM
8.1 GROUP DATACOMPLIANCE EXCESS RATE
%

1

0

0.95

2016

0.10

0.14

0.10

0.15

2017

2018

2019

2020

The compliance excess rate is the ratio between the total number of excess results and the total numberof compliance measurements. An excess result is a monitoring result that violates a limit value definedin a permit, regulation or other relevant regulatory standard.
The total number of measurements is the total number of environmental impact measurements as
required by the operational permit, environmental permit, or comparable standard in the region where
the reporting entity is operating. The total number means the number of measurement events multipliedby the number of parameters per measurement event.
In 2020, some 54,000 environmental measurements were carried out at all of Umicore’s industrial sites,
compared to some 49,000 the year before.
The number of measurements that did not meet the regulatory or permit requirements is very low at
0.15% for the Group, compared to 0.13% in 2019.
Of the 55 consolidated industrial sites, 53 have put in place an environmental management system
certified against ISO 14001. One of the remaining 2 sites is an acquisition that joined Umicore reportingin 2018, and the sites is planning the implementation of an environmental management system during2021. The other site was closed down during the course of 2020 and did not undergo recertification during
the last months before shutdown. All major sites with significant environmental impacts are certified
against the ISO 14001 management system.
In total, 80 environmental complaints were received in 2020, the large majority of which was related tonoise and odor. 44 of the complaints are ongoing.

Umicore Integrated Annual Report 2020

Statements

198

Social statements
SOCIAL KEY FIGURES

199

S3

PEOPLE ENGAGEMENT

202

S7

OCCUPATIONAL HEALTH

205

NOTES TO THE SOCIAL KEY FIGURES

199

S4

EMPLOYEE RELATIONS

204

S8

OCCUPATIONAL SAFETY

208

S9

PROCESS SAFETY

210

S1

SCOPE OF SOCIAL STATEMENTS

199

S5

CODE OF CONDUCT

204

S2

WORKFORCE

200

S6

APPROACH TO HEALTH & SAFETY

204

Umicore Integrated Annual Report 2020

Statements

199

SOCIAL KEY FIGURES
unit

Notes

2016

2017

2018

2019

2020

Workforce (fully consolidated companies)

N°

S2

9,921

9,769

10,420

11,152

Temporary contracts% of workforce

S2

3.45

3.86

3.13

3.31

10,859
3.19

Women amongst all employees% of workforce

S2

21.6

21.92

21.30

20.88

21.68

Women amongst all managers% of workforce

S2

22.11

22.37

22.98

23.13

23.06

Women amongst senior management% of workforce

S2

9.09

6.77

9.70

10.96

10.74

Women in 'business operations' management functions

%

S2

14.27

15.55

15.08

14.90

14.43

Non-European representation in senior management functions

%

S2

16.67

18.05

17.91

18.49

20.13

Average training hours per employee

hours/employee

S3

41.49

45.33

43.10

48.73

36.33

Employees having a yearly appraisal% of workforce

S3

96.03

98.29

96.15

94.00

93.42

Voluntary leavers - ratio% of workforce

S3

4.10

5.03

7.18

5.99

4.20

Employees represented by union or Collective Labour Agreement (CLA)% of workforce

S4

69.41

65.41

64.49

65.60

66.38

Exposure ratio 'all biomarkers aggregated'1

%

S7

3.2

2.7

2.8

1.8

1.6

Number of occupational linked diseases

N°

S7

12

11

12

18

6

People with platinum sensitisation

N°

S7

1

1

3

1

1

Fatal accidents

N°

S8

1

0

1

0

1

Lost Time Accidents (LTA)

N°

S8

59

51

61

90

49

Lost Time Accidents (LTA) for sub-contractors

N°

S8

15

22

21

25

17

LTA frequency rate

LTA/million hours worked

S8

3.3

3.0

3.4

4.6

2.5

LTA severity rate

lost days/thousand hours worked

S8

0.6

0.1

0.1

0.2

0.5

1 Ratio between the number of monitoring results exceeding the Umicore target value, defined for relevant hazardous substances, and the total number of monitoring results.

-

S1 SCOPE OF SOCIAL STATEMENTS
In total, 86 consolidated sites are included in the HR related notes of the social reporting (S2 to S5).
This is a decrease of 4 sites from 2019 and attributed to 4 site closures: Beijing (TFP), Wickliffe, Bagnolet
which relocated to active site Paris and Brentwood which relocated to active site Hertford. The sites
report full year data for the social indicators. The indicators presented are based on data from fully
consolidated companies.

Umicore Integrated Annual Report 2020

Statements

200This applies to all hourly paid, monthly paid, managers and interns on Umicore’s payroll at the endof the reported semester including part-time and temporary employees but excludes employees witha dormant contract (career interruption, parental leave, etc.), employees on long-term illness (country
specific length of continuous absence) and early retirees.

S2 WORKFORCEGROUP DATA
unit

2016

2017

2018

2019

2020

Workforce (fully
consolidated companies)

N°

9,921

9,769

10,420

11,152

10,859Workforce fromassociated companies

N°

3,196

3,360

3,180

2,976

2,460

Employees men

N°

7,778

7,628

8,201

8,823

8,505

Employees women

N°

2,143

2,141

2,219

2,329

2,354

Full-time equivalent

N°

9,716

9574

10,224

10,956

10,576

Employees < 30 years

N°

1,620

1697

1,980

2141

1,893

Employees between 30
and 50 years

N°

5,605

5504

5,939

6363

6,339

Employees > 50 years

N°

2,696

2568

2,501

2648

2,627

Temporary contracts% ofworkforce

3.45

3.86

3.13

3.31

3.19

Women amongst
all employees% ofworkforce

21.60

21.92

21.30

20.88

21.68

Women amongst
all managers% ofworkforce

22.11

22.37

22.98

23.13

23.06

Women amongst
senior management% ofworkforce

9.09

6.77

9.70

10.96

10.74

Women in'business operations'management functions

%

14.27

15.55

15.08

14.90

14.43

Non-European
representation in senior
management functions

%

16.67

18.05

17.91

18.49

20.13

Workforce: Number of employees on Umicore payroll at the end of the period in fully consolidated
companies. The number includes part-time and temporary employees but excludes employees with adormant contract, employees on long-term illness and sub-contracted employees.

TOTAL WORKFORCE

Temporary contract: Umicore employees with a temporary contract, included in the workforce of fully
consolidated companies.

The total workforce decreased by 809 employees to a total of 13,319. For the fully consolidated companies,
the workforce decreased by 293 people to 10,859, mainly due to a decrease in the Asia-Pacific and North
American regions.

Full time equivalent: The FTE of a worker is calculated by dividing the actual working regime, hours, shifts
by the regime, hours, shifts of a full-time worker at the end of the period in fully consolidated companies.

Amongst the associated companies there was a decrease of 516 employees, mainly due to the reductions
in personnel at sites in Germany, Ireland, South Africa and United Kingdom in Element Six.

Umicore Integrated Annual Report 2020

Statements
The FTE of 10,576 (consolidated) comes very close to the reported headcount of 10,859, illustrating thatmost of Umicore employees are working on a full-time basis.

TEMPORARY CONTRACTS

Temporary contracts as a percentage of the workforce of fully consolidated companies decreased slightly
to 3.19% in 2020.

GENDER SPLIT

The percentage of women was 21.68% as a proportion of the workforce of fully consolidated companies.
It has increased slightly from 2019.

GENDER SPLIT – SENIOR MANAGERS

While the total percentage of women employees has remained rather stable compared to 2016, thepercentage of women managers has shown an increase from 22.11% in 2016 to 23.06% in 2020. The
percentage of women in senior management dropped slightly from 2019. Overall, in the last five years
the percentage increased from 9.09% in 2016 to 10.74% in 2020. While we did not achieve the ambition toreach 15% of women in senior management functions by end of 2020, increasing the number of womenin senior management remains a target for the next coming years.

WOMEN IN “BUSINESS OPERATIONS” MANAGEMENT FUNCTIONS

To monitor career development, we have defined the notion of “business operations” management
functions, referring to those in the fields of operations, sales and general management. These arefunctions that present a pipeline of talent to senior management. Within the senior management group,
the business operation functions represent 52% of the group in 2020.

201

NON-EUROPEAN REPRESENTATION IN SENIOR MANAGEMENT FUNCTIONS

Since 2016 we have also monitored the share of non-European representation in senior management
functions, as an indicator for diversity. In 2020, this share increased to 20.13%, from 2019 at 18.49%. Overthe last five years, the percentage has shown a steady increase from 16.67% in 2016 to 20.13% in 2020.

REGIONAL DATA
unit

EuropeNorth
AmericaSouth
America

AsiaPacific

AfricaUmicoreGroup

Total workforce

N°

6,980

704

964

4,049

622

13,319Workforce (fully
consolidated companies)

N°

6,102

692

607

3,223

235

10,859Workforce fromassociated companies

N°

878

12

357

826

387

2,460

Employees men

N°

4,808

529

454

2,567

147

8,505

Employees women

N°

1,294

163

153

656

88

2,354

Full-time equivalentN°

5,828.05

686.33607.003,219.50

235.00

10,576

Temporary contracts% ofworkforce

3.98

2.46

2.14

2.26

0.00

3.19

BUSINESS GROUP DATA
unit

Catalysis

Energy &SurfaceTechnologies

Recycling

Corporate

UmicoreGroup

Total workforce

N°

3,073

4,488

2,769

2,989

13,319Workforce (fully
consolidated companies)

N°

3,073

3,761

2,769

1,256

10,859Workforce fromassociated companies

N°

1,733

2,460

Employees men

N°

2,428

3,002

2,321

754

8,505

Employees women

N°

645

759

448

502

2,354

Full-time equivalentN°

3,042.44

3,758.97

2,707.67

1,066.80

10,576

Temporary contracts% ofworkforce

5.79

2.29

2.06

1.99

3.19

727

We have monitored the share of women managers in “business operations” functions since 2016. In
2020, the share of women within this management group employed in business operations functions
decreased slightly to 14.43% compared to 14.9% in 2019. Overall, compared to 14.27% in 2016 it hasslightly increased.

Umicore Integrated Annual Report 2020

Statements
GENERAL OVERVIEW OF SITES AND EMPLOYEES
Production
sites

R&D |
Technical
centres

Other sites

Employees

202

Figures in brackets denotes “of which associates and joint venture companies”. Where a site has bothproduction facilities and offices (e.g. Hanau, Germany), it is classified as a production site only. Some ofour production sites and R&D/technical centers are located on the same site but are counted separately.

S3 PEOPLE ENGAGEMENT

EuropeAustria

1

-

-

142

Belgium

3

1

1

3,196

Denmark

1

1

-

115

Finland

1

1

-

266

France

3

-

1

257

Germany

4 (1)

3

1

1692 (331)

Ireland

(1)

-

-

(405)

Italy

-

-

2

38

Liechtenstein

1

1

-

77

Luxemburg

-

-

1

10

Netherlands

-

-

1

8

Poland

2

-

1

201

Portugal

-

-

1

6

Russia

-

-

1

6

Spain

-

-

1

5

Sweden1-(1)

39 (1)

United Kingdom

1

(1)

2 (1)

44 (141)

GROUP DATA
unit

2016

2017

2018

2019

2020

Employees having ayearly appraisal% ofworkforce

96.03

98.39

96.15

94.00

93.42

Average numberof training hours
per employee

hours/
employee

41.49

45.33

43.10

48.73

36.33

Average number oftraining hours per
employee – Menhours/
employee

42.38

46.53

44.68

48.26

37.11

Average number oftraining hours per
employee – Women

hours/
employee

38.28

41.01

37.29

50.48

33.49

Average number oftraining hours per
employee – Managers

hours/
employee

41.03

38.54

37.59

43.01

26.98

hours/
employee

41.52

46.44

42.94

49.51

38.62

Australia

-

-

1

7

China

4 (3)

1

5 (1)

1499 (813)

Average number oftraining hours per
employee – Other
employee categories

India

1

-

2

88

Voluntary leavers ratio

4.10

5.03

7.18

5.99

4.2

Japan

2

3

2 (1)

181 (9)% ofworkforce

Philippines

1

-

-

89

Voluntary leavers men

N°

309

404

619

521

372

South Korea

3

2

1

1,170

Voluntary leavers women N°

97

70

110

126

86

Taiwan

-

-

2

26

Thailand

2

-

1

163

United Arab Emirates

-

-

(1)

(4)

Canada

3

-

-

253

Mexico--11

United States

7

1

3 (1)

438 (12)

ASIA-PACIFICNORTH AMERICA

SOUTH AMERICA-

Argentina

1

-

-

67

Brazil

4

1

-

540

Peru

(1)

-

-

(357)

Training hours: Average number of training hours per employee, including all types of training (formal,
training on the job, E-learning, etc.) in which the Company provides support, and which are relevant tothe business unit or the Company. The total number of training hours is divided by the total workforce offully consolidated companies.
Voluntary leavers: Number of employees leaving the Company of their own will (excluding retirement
and the expiry of a fixed-term contract). This figure is related to the workforce from fully
consolidated companies.

AFRICASouth Africa
TOTAL

1 (1)

-

1

235 (387)

47 (7)

15 (1)

32 (6)

10,859(2,460)Umicore Integrated Annual Report 2020

Statements
AVERAGE NUMBER OF TRAINING HOURSPER EMPLOYEEREGIONAL DATA
unit

EuropeNorth
AmericaSouth
America

AsiaPacific

AfricaUmicoreGroup

hours/
employee

28.94

24.20

95.80

43.26

14.83

36.33

Employees having a yearly appraisal % ofworkforce

91.71

94.42

100.00

94.80

98.74

93.42

36.33

Voluntary leavers ratio

1.77

5.29

1.65

9.25

0.84

4.20

2020

BUSINESS GROUP DATA

Hours

50

45.33
41.49

Average number of training hours
per employee

43.10

48.73

40
30

2016

2017

2018

2019

203

% of
workforce

unit

Catalysis

Energy &SurfaceTechnologies

Recycling

Corporate

Umicore
Group

38.45

28.32

36.33

50

Employees having ayearly appraisal% ofworkforce

97.84

92.43

89.10

95.40

93.42

50

Voluntary leavers ratio% ofworkforce

4.22

6.72

1.73

1.76

4.20

25

25

Managers
Other employee
categories

VOLUNTARY LEAVERS RATIO, BY REGION
%
9.25
0.84

1.65

1.77

VOLUNTARY LEAVERS RATIO
%

8

5.29

10

EuropeNorth America
South America
Asia-Pacific
Africa

7.18%

6
4

5.99%

5.03%

Data shows that managers training hours (26.98 hours) are lower than for other employees (38.62 hours).
4.20%

4.10%
2016

TRAINING HOURS

In 2020, the average training hours per employee decreased to 36.33 hours from the previous year.
Globally, training hours were primarily impacted by COVID-19. Where possible, trainings were organised
differently: in smaller groups respecting social distancing and online trainings. A part of the trainings were
postponed or cancelled. In all regions training hours dropped, except for region South America where it
increased in Brazil. This was mainly due to a high number of “on the job” training hours for employees
who were hired, changed jobs or took on additional responsibilities in some sites. The amount of “on thejob” hours differentiated based on job role, complexity of processes and tasks. The training hours for “onthe job learning” are not consistently captured or registered in all sites.

0

0

0

26.98

33.49

Men
Women

38.62

hours/
employee

40.11

Hours

Average numberof training hours
per employee

32.73

Hours

37.11

AVERAGE NUMBER OF TRAINING HOURSPER EMPLOYEE – GENDER SPLITAVERAGE NUMBER OF TRAINING HOURSPER EMPLOYEE CATEGORY

2017

2018

2019

2020

YEARLY APPRAISAL

In 2020, 93.42% of all employees from fully consolidated companies had an appraisal interview to discuss
their development at least once a year.

Umicore Integrated Annual Report 2020

Statements
VOLUNTARY LEAVERS

In 2020 the voluntary leavers rate decreased to 4.20% from 5.99% in 2019. Although the rate dropped for
all regions, still significant regional differences can be observed with Asia Pacific reporting the highest
voluntary leaver rate (9.25%) and Africa (0.84%) the lowest. The high voluntary leaver rate in Asia Pacificis not unique to Umicore and can be explained by a highly competitive and fluid labor market.

VOLUNTARY LEAVERS – GENDER

Of the 4.2% of voluntary leavers worldwide, 18.78% were women, down from 19.47% in 2019.

S4 EMPLOYEE RELATIONS

unit

2016

% of
workforce

2017

69.41

65.41

2018
64.49

2019

2020

65.60

66.38

EMPLOYEES REPRESENTED BY UNION OR
COLLECTIVE LABOUR AGREEMENT (CLA)
%

70
69.41

65.41

65
60

2016

2017

64.49

2018

65.60

2019

66.38

2020

In 2007, Umicore signed a Sustainable
Development Agreement with the International union IndustriALL, which was renewed for 4 years
in 2015 and in 2019. In this agreement, Umicore commits to a number of principles including: the banningof child labour and forced labour, recognizing the right to its employees to organize themselves and toparticipate in collective bargaining.
All sites are screened internally each year. This screening showed that none of Umicore’s sites
demonstrated a particular risk of infringement in any of the principles of the agreement.

REGIONAL DATA
unit
Employees represented by union or % ofCollective Labour Agreement (CLA) workforce

EuropeNorth
AmericaSouth
America

AsiaPacific

AfricaUmicore
Group

86.14

3.32

90.61

40.18

35.74

66.38

BUSINESS GROUP DATA
unit

Employees represented
by union or Collective
Labour Agreement (CLA)

In total, 66.38% of Umicore employees belong
to a trade union organization and/or the level of
their wages are negotiated through a collective
bargaining agreement. On a regional basis, there
are significant differences in union representation,with the highest representation in South America
and Europe and the lowest in North America.

SUSTAINABLE
DEVELOPMENT AGREEMENTGROUP DATA
Employees represented
by union or Collective
Labour Agreement (CLA)

UNION AND COLLECTIVELABOR AGREEMENT

204

% of
workforce

Catalysis

48.29

Energy &SurfaceTechnologies

Recycling

61.18

87.69

Corporate

79.22

Umicore
Group
66.38

S5 CODE OF CONDUCT
Umicore has a systematic Group-wide internal reporting on Code of Conduct issues since 2011. In 2020 a
total of 35 cases were reported, involving a total of 45 employees. The type of action taken varies froma warning letter to dismissal.

S6 APPROACH TO HEALTH & SAFETY
The Group EHS Guidance Note (hereafter ‘EHS Guidance Note’) is Umicore’s central EHS management
system. It describes the groupwide environmental, health and safety requirements and expectations. It isbased upon ‘The Umicore Way’ and provides a framework for the business units and sites to putting it into
effect. The structure of the guidance note is consistent with the ISO 14001 and OHSAS 18001 management
systems and explicitly references those frameworks. The EHS Guidance Note is a basis for the Corporate
EHS audit program which focuses both on compliance with the guidance note and compliance with
relevant local environmental, health and safety laws and regulations. The business units (BUs) and sites
develop a clear action plan on the identified areas for improvement and Corporate EHS follows-up on thisaction plan to ensure proper progress and timely completion.

Umicore Integrated Annual Report 2020

Statements
As stipulated in the EHS Guidance Note, and in line with Umicore’s decentralized organization:● Umicore’s BUs and sites are responsible for translating the EHS Guidance Note into their own EHS
management systems and procedures while respecting the requirements and expectations definedin the EHS Guidance Note.
● Umicore’s BUs and sites are responsible for identifying risks and impacts of their activities, innormal operational conditions and potential emergencies. These assessments include potential for
occupationally-linked health symptoms and diseases, hazards, injuries due to accidents, and toxicity or
ecotoxicity of chemical substances. Each site must have a process in place to evaluate and document
those aspects and impacts of their operations which are linked to both the workplace and theenvironment, including the operations of contractors working on Umicore sites.
● Umicore Corporate EHS staff, in consultation with the BUs and sites, advise on company-specific EHS
standards including biological target values, safety and occupational exposure targets.
● Each BU and site develops a safety policy in line with the Group Safety Policy. The health andsafety management system must ensure that employees, contractors and visitors are protectedagainst harmful effects of working with chemicals, processes or machinery. The system includes:
workplace assessments of potential hazards; operating procedures for employees and contractors;
training programs on the hazards of chemicals, processes, and on prevention and safety; hazard
communication for employees and contractors related to exposure potentials, control systems,
emergency situations and specific health risks ; the need for personal protective equipment;
ergonomics; storage, loading and unloading of hazardous products; machine-guarding programs toprotect workers from exposure to moving parts; electrical safety; work permits and a lock out –tag out programs to protect employees or contractors working around equipment during repair ormaintenance activities; etc.
● Umicore has a risk competency practice in place at the sites designed to empower workers to evaluate
the hazards and risk at the workplace and feedback to their supervisor. Workers, in coordination withthe supervisor, can suggest risk management options which can include stopping a job, having it
re-evaluated and adding new measures prior to resuming the job if necessary.
● All sites must have a written occupational hygiene and occupational health programs. Sites areencouraged to implement specific preventative programs, for example around smoking cessation
or avoiding workplace risks resulting from use of drugs and alcohol, and must provide accessto occupational health services via a licensed occupational physician or another occupational
health organization.
● All new employees follow a Group health and safety induction training during the initial phase of
their employment. Specific training plans are developed for new and temporary employees (including
managers and contractor employees).
● Each accident, incident and significant near miss must be investigated and control measures taken
to prevent reoccurrence. Additionally, the investigation needs to include where and why the EHS
management system failed and to record recommended appropriate measures. Contractors are

205

required to investigate accidents and incidents on Umicore premises, where not addressed by the
Umicore site. The Group Safety Policy includes an incident investigation in a ‘no-blame atmosphere’.
Umicore has also committed to worker health and safety in the context of the IndustriALL Global
Framework Agreement. To view Umicore’s IndustriALL Global Framework Agreement, visit:umicore.com/industriALL

S7 OCCUPATIONAL HEALTH
All consolidated industrial sites where Umicore has operational control, are included in the scope of theoccupational health reporting., In 2020, following Umicore’s internal reporting procedure 56 sites wererequired to report their occupational health data.
The information in this note only relates to Umicore employees. Data on subcontractors’ occupational
health are not included. Additional information on Umicore’s approach to occupational health can be foundin the corresponding section of Management Approach(p. 72) and in above note S6.

Umicore Integrated Annual Report 2020

Statements

The number of occupational diseases is the number of employees with a newly diagnosed occupational
disease or occupationally linked symptoms during the reporting year.

GROUP DATA
unit

2016

2017

2018

2019

2020

Exposure ratio 'all
biomarkers aggregated'1

%

3.2

2.7

2.8

1.8

1.6

Exposure ratio
lead (blood)2

%

0.5

0.5

2.0

0.9

0.6

Exposure ratio arsenic(urine) 2

%

2.0

1.0

1.2

0.8

0.8

Exposure ratio cobalt(urine) 2

%

9.0

6.0

5.0

3.4

2.7

Exposure ratio cadmium(urine) 2

%

1.4

0.7

0.5

0.2

0.2

Exposure ratio nickel(urine) 2

%

2.0

1.4

2.6

1.8

2.0

Exposure ratio indium(blood) 2

%

11.3

14.2

2.8

1.9

1.6

People with platinum
salts sensitisation

N°

1

1

3

1

1

People with noise
induced hearing loss

N°

4

0

0

5

3

People withcontact dermatitis

N°

0

2

3

4

0

People with occupational N°
asthma other than Pt­
salts

0

0

0

0

1

People with muskulo­
skeletal ailments

7

8

6

8

1

N°

1 Ratio between the number of monitoring results exceeding the Umicore target value, defined for relevant hazardous substances, and the total
number of monitoring results.
2 The exposure ratio of a specific metal is defined as the ratio between the number of employees with a biological monitoring result exceeding
the Umicore target value for that specific metal and the total number of employees exposed to that metal. The Umicore target values are based
upon recent peer reviewed scientific data and regularly re-evaluated in the context of new evidence.

By 2020, it was Umicore’s objective to have no exceedance for the biomarkers of exposure for the metals
listed below. The following target values have been defined:
●
●
●
●
●
●

206

Cadmium: 2 micrograms per gram of creatinine in urine
Lead: 30 micrograms per 100 ml of blood
Cobalt: 15 micrograms per gram of creatinine
Indium: 1 microgram per liter of plasma
Arsenic and nickel: 30 micrograms per gram of creatinine in urine
Platinum salts: no new cases of platinum salt sensitization

While the COVID-19 pandemic has delayed some biological monitoring campaigns in the 1st half year, by
the end of 2020, all employees were submitted to a full program as required by Umicore’s internal healthguidance notes.
In 2020, a total of 7406 biological sampling procedures took place from employees with an occupational
exposure to at least one of the metals mentioned above (platinum salts excluded). 122 readings showeda result in excess of the internal target value. This brings the total excess rate to 1.6%, comparable
to the 1.8% excess rate of 2019. All occupationally exposed employees are regularly monitoredby an occupational health physician in line with regulatory requirements and Umicore occupational
health guidance.

LEAD

Occupational lead exposure represents a potential health risk, mainly in the business group Recycling.
In total, 8 of the 1,385 occupationally exposed employees exceeded the target value of 30μg/100ml,
decreasing as such the excess rate for lead exposure to 0.6% compared to 0.9% in 2019.
The decrease in excess readings is the result of continued improved workplace hygiene measures at thelead refinery at the Hoboken site (Belgium, Recycling). The site improved its ventilation systems, while
instructions and training resulted in better compliance with personal protective equipment requirements.

ARSENIC

Occupational exposure to arsenic is possible in the business groups Energy & Surface Technologies andRecycling. In total, 8 employees or 0.8% of the 967 occupationally exposed workers had an excess reading
during 2020, the same excess rate as in 2019.
All workers occupationally exposed to arsenic are submitted to a medical surveillance program to closely
monitor their health condition.

COBALT

In total, 2,034 employees are occupationally exposed to cobalt, mainly in the business group Energy &Surface Technologies. The number of employees exceeding the target value was further reduced to 55,
resulting in an excess rate of 2.7%, down from 3.4% in 2019.
In the business unit Rechargeable Battery Materials we noticed an excess rate of 1.2% in 2020, the same
number as in 2019.

Umicore Integrated Annual Report 2020

Statements
The excess readings in the business unit Cobalt & Specialty Materials decreased from 11.1% in 2019 to
10.5% in 2020.
The sites in Cheonan (Korea, Rechargeable Battery Materials) and Jiangmen (China, Rechargeable Battery
Materials) continued and maintained their comprehensive ‘zero dust’ management plan. In the lastquarter of 2020, the site in Cheonan achieved a zero-excess rate during the biological monitoring
campaign. This ‘zero dust’ program focuses on equipment improvements and workers’ behavior. Concrete
actions include awareness programs, regular industrial hygiene campaigns, excellent housekeeping andimproved maintenance of critical equipment.
The business unit Cobalt & Specialty Materials continues to further develop their dust reduction programwith focus on technical improvements, encapsulation of equipment, enhanced ventilation systems andstrict application of personal protective equipment procedures including respiratory mask fit testingfor each exposed employee. While over the past years progress has been made,the sites in Olen
(Belgium, Energy & Surface Technologies), Fort Saskatchewan (Canada, Energy & Surface Technologies)
and Grenoble (France, Energy & Surface Technologies) continue to report the highest excess rates.
For workers exposed to cobalt, both business units Cobalt & Specialty Materials and Rechargeable Battery
Materials have implemented Umicore’s occupational health guidance for cobalt, including biologicalmonitoring and medical surveillance. For the site in Jiangmen (China, Energy & Surface Technologies),
the medical staff of the new occupational health center has been set up and implemented a cobalt
health and hygiene program in line with Umicore’s internal guidelines and compliant with Chinese
regulatory requirements.

CADMIUM

Occupational exposure to cadmium represents a potential health risk in the business groups Energy &Surface Technologies and Recycling. Cadmium in urine is an excellent biomarker for lifetime exposure. In
2020, a total of 449 employees had an occupational exposure to cadmium.
Only 1 employee recorded a cadmium in urine reading in excess of the target value. This resulted in anexcess rate of 0.2%, the same as in 2019.

NICKELThe business groups Energy & Surface Technologies and Recycling have occupational exposure to nickel.
In 2020, a total of 2,380 employees were exposed to nickel. In 2020, 47 of the exposed workers exceeded
the target level resulting in an excess level of 2.0% compared to 1.8% in 2019.
In the business unit Rechargeable Battery Materials, we noticed an increase in excess readings from 0.9
in 2019 to 2.4% in 2020, mainly related to an increased exposure at the site in Jiangmen (China, Energy &207

Surface Technologies). Increased production volumes and a reduced compliance with the site’s personal
protective equipment policy contributed to the increased number of excess readings. The site intensifies
its training programs for newcomers and continues to invest in technical improvements.
The excess readings in the business unit Cobalt & Specialty Materials significantly decreased from 12.2%
in 2019 down to 5.5 % in 2020. While the closure of the site in Wickliffe (USA, Energy & Surface
Technologies) significantly contributed to this reduction, the dust management programs at the sites in
Subic (Philippines, Energy & Surface Technologies) further strengthened this trend.
For workers exposed to nickel, both business units Cobalt & Specialty Materials and Rechargeable Battery
Materials have implemented Umicore’s occupational health guidance for nickel, including biologicalmonitoring and medical surveillance. For the site in Jiangmen (China, Energy & Surface Technologies),
the medical staff of the new occupational health center has been set up and implemented a nickel
health and hygiene program in line with Umicore’s internal guidelines and compliant with Chinese
regulatory requirements.

INDIUM

The business group Energy & Surface Technologies has exposure to indium. Indium in plasma is an
excellent biomarker for lifetime exposure.
In 2020, 191 employees were exposed to indium. 3 employees had an excess reading for indium inplasma, at the site in Balzers (Liechtenstein, Energy & Surface Technologies) resulting in an excess rateof 1.6% compared to 1.9% in 2019. All these workers had a current or former exposure at the bonding
workplace. The working conditions at this workplace have been improved and an extensive medical
surveillance program, in line with Umicore occupational health guidelines, has been implemented.

PLATINUM SALTS

The business groups Catalysis and Recycling have workplaces with exposure to platinum salts.
In 2020, we had 1 newly diagnosed employee with a platinum salt sensitization at the site in Hoboken(Belgium, Recycling). The worker has been removed from the workplace. All workers exposed to platinum
salts are being monitored through an occupational health program, following a Umicore health guideline
and are being regularly checked for platinum salt sensitization.

OTHER OCCUPATIONAL RELATED DISEASESIn 2020, 1 employee developed a musculoskeletal disorder due to his occupation. 3 employees
developed a noise-induced hearing loss. All people concerned are being followed-up by an occupational
health physician.

Umicore Integrated Annual Report 2020

Statements
Over the past years, Umicore has been confronted with several burn-out cases that led to long-term
sickness with impact on both the individual and the organization. The Umicore sites in Belgium continue
their program consisting of primary prevention of burn-out combined with early recognition of symptoms
and case management support. Concrete actions included awareness campaigns via leaflets, e-learning,
workshops, training for supervisors and managers and individual coaching in case of burn-out symptoms.
Similar programs have been implemented at Umicore sites in other countries such as Germany.
During the lock-down periods following the pandemic, many office employees had to work from theirhome office for longer periods. Many sites took measures to ensure the wellbeing of their employees.
These measures included regular virtual contacts among team members, leaflets on the company’s
intranet with tips and tricks to organize your home-working, online social events etc.

208

GROUP DATA
unit

2016

2017

2018

2019

2020

Fatal accidents

N°

1

0

0

0

1

Fatal accidents sub­contractors

N°

0

0

1

0

0

Lost Time Accidents (LTA) N°

59

51

61

90

49

Lost Time Accidents(LTA) sub-contractors

N°

15

22

21

25

17

3.34

3.01

3.36

4.6

2.5

N°

9,848

1,590

1,830

3,893

9,176

0.56

0.09

0.10

0.2

0.5

127

138

158

158

119

6.78

8.15

8.70

8.07

6.13

LTA frequency rate
Calendar days lost
LTA severity rate
Recordable Injuries (RI)N°

S8 OCCUPATIONAL SAFETY

Recordable Injuries
frequency rate

In 2020, 92 consolidated sites, of which 58 are industrial sites, are included in the safety reporting. This
number also includes commercial offices.

Ratio N° of sites with
no LTA / total N° ofsites reporting

%

84

84

84

83

83

Sites OHSAS 18001 / ISO45001 certified

%

41.7

51.0

51.9

52.6

54.4

Additional information on Umicore’s approach to safety can be retrieved in the corresponding section ofManagement Approach(p. 72) and in above note S6.
The Umicore information in this note only relates to Umicore employees. Data on subcontractors’
occupational safety are being reported separately. Umicore strives towards an accident-free workplace.

Umicore employee: a person belonging to Umicore’s total workforce. A Umicore employee can be afull-time, part-time or temporary employee
Sub-contractor: a person not belonging to Umicore’s total workforce, providing services to Umicore in oneof its premises under terms specified in a contract
Fatal accident: a work-related accident with fatal outcome
Lost time accident (LTA): a work-related injury resulting in more than one shift being lost from work
Recordable injury (RI): a work-related injury resulting in more than one first aid treatment or in a modified
working program but excluding lost time accidents
Frequency rate: number of lost time accidents per million hours worked
Severity rate: number of lost calendar days due to a lost time accident per thousand hours worked.
Accidents to and from work are not part of the scope of the safety data

Umicore Integrated Annual Report 2020

Statements
SEVERITY RATE

6
0.56

0.47

0.5
0.10

0.09

0

for the implementation of a detailed improvement plan on powered forklift trucks, stationary machineryand equipment.

FREQUENCY RATE

1

2016

2017

2018

2019

3.34

2

2020

In total 9,176 calendar days were lost due to lost time accidents including the 7,500 default days lost
following the fatal accident. This resulted in a severity rate of 0.47, more than a doubling compared
to 2019.

4.6

4

0.20

3.36

3.01

2016

2.5

2017

2018

2019

There were 119 reported recordable injuries, down from 158 in 2019. The RI frequency rate for 2020 was
6.13 compared to 8.07 in 2019. 17 lost time accidents were registered for contractors compared to 25 in2019 .

2020

During 2020, 83% of the reporting sites that were operational throughout the year operated without a losttime accident. 54.4% of the sites were certified using the occupational health and safety management
system OHSAS 18001 or ISO 45001.

REGIONAL DATA
unit
Lost Time
Accidents (LTA)

EuropeN°

North
America38

South
America4

Asia-Pacific1

Africa6

Umicore
Group
0

49

BUSINESS GROUP DATA
unit

Fatal accidents

Catalysis

Energy &SurfaceTechnologies

Recycling

Corporate

Umicore
Group

N°

0

1

0

0

1

Lost Time Accidents (LTA) N°

7

8

34

0

49

Calendar days lost

82

7,768

1,326

0

9,176

N°

209

A sensitivity analysis of the safety numbers demonstrated that the lockdown periods did not change in asignificant way the number of hours exposed, an indicator used to calculate both the Group’s frequency
and severity rates.
In 2020, 49 lost time accidents have been recorded, down from 90 in 2019. This resulted in a frequency
rate of 2.52, down from 4.62 in 2019.
Any satisfaction we might have derived from the reduced number of lost time accidents is wiped out by
the fatal accident at the site in Subic (Philippines, Energy & Surface Materials). An employee got seriously
injured during the operation of a forklift truck. He was transferred to the hospital for emergency surgery
but a week later succumbed to his injuries. Immediate actions were taken to prevent this type of forklift
handling and a global safety alert has been sent to all business units with clear instructions and deadlines

38 lost time accidents, or 77% of lost time accidents, occurred in Europe. Of these, 28 lost time accidents
occurred at Belgian sites and 6 at German sites. The Asia-Pacific sites accounted for 6 accidents. 4 losttime accidents happened in North American sites and 1 in a South American site.
Umicore counted only 14 lost time accidents during the 1st half year (1st of January through the 30th of June).
We believe that the COVID-19 pandemic may have led to an increased scrutiny of the workplace conditions
by all employees to protect themselves and their fellow co-workers of getting infected at the workplace.
In addition, a consistent and a more coaching communication style on the health and hygiene measures
to be taken by the sites may also have contributed to an increased risk awareness.
In 2020, the business group Catalysis recorded 7 lost time accidents compared to 11 in 2019. Following
a safety culture survey at the end of 2019 the business unit Automotive Catalysts has implemented
additional safety behavioral actions including risk competency projects in several of its sites. All
Automotive Catalysts production plants are required to be certified against the ISO 45001 or OHSAS 18001
management system. At year-end, the site Tsukuba ( Japan) recorded more than 10 years without a losttime accident or recordable injury to Umicore staff and no lost time accident to contractors on site. The
sites in Port Elizabeth (South-Africa), Himeji ( Japan) and Rayong (Thailand), had operated over 5 years
without lost time accident or recordable injury to Umicore staff and no lost time accident to contractors
on site. The sites in Auburn Hills (USA), Karlskoga (Sweden); Shirwal (India) and Tokoname had operated
more than 3 years without a lost time accident or recordable injury to Umicore staff and no lost time
accident to contractors.
The business group Energy & Surface Technologies recorded 8 lost time accidents, down from 14 in 2019.
The sites further deployed their safety actions around 3 main pillars: ‘men’, ‘machines’ and ‘methods’. At

Umicore Integrated Annual Report 2020

Statements
year end, the sites in Dundee (UK) and Tsukuba ( Japan) have been recognized for their excellent andsustained safety performance, recording over 10 years without any lost time accident or recordable injury
to Umicore staff and no lost time accident to contractors. Balzers (Liechtenstein) operated more than 5
years without any lost time accident or recordable injury to Umicore staff and no lost time accidents tocontractors. The site in Manaus (Brazil), Hsinchu Hsien (Taiwan), La Vergne and Quapaw (USA) operated
more than 3 years without any lost time accident or recordable injury to Umicore staff and no lost time
accidents to contractors.

210

Following a major fire incident at the Hoboken production site, a fire investment plan is established incollaboration with independent fire risk experts and the fire insurance company. The site intensified fire
inspections and emergency response planning in close collaboration with the local authorities.

The business group Recycling had 34 lost time accidents compared to 62 in 2019. The site in Hoboken(Belgium, Recycling) reported 27 lost time accidents compared to 57 in 2019. The site has continued theimplementation of its ‘Safety @ Precious Metals Refining’ action plan under the leadership of a senior
management steering committee. During 2020, the site has among other measures intensified its safety
observation tours by all managers and supervisors. At year end, the site in Markham (Canada) and the
UMS site in Bangkok (Thailand) operated 3 years without any lost time accident or recordable injury to
Umicore staff and no lost time accident to contractors.
There were no lost time accidents in general services and corporate offices, including Corporate Research& Development.
Umicore is reviewing it global safety strategy and actions under the leadership of a newly hired Group
Safety Director.

S9 PROCESS SAFETY
In 2020, the Umicore Group process safety activities focused on executing process risk assessment studies
to ensure that all our processes are being operated in the acceptable risk zone. At year end, over 70%of the production processes had received specific process hazard and risk assessments compliant with
Umicore standards, compared to 60% in 2019. A detailed timeline has been reviewed for completion of
the remaining studies in the coming years, giving priority to the processes with high risk profiles.
Due to COVID-19 travel and meeting restrictions in 2020, an alternative audit program of remote process
safety compliance audits and quality review of process risk assessments was established.
Umicore continued its process safety training program in 2020 with online HAZOP leader training sessions
and hydrogen safety webinars.

Umicore Integrated Annual Report 2020

About this report

211

About this report

Umicore Integrated Annual Report 2020

About this report212

About this report
The Umicore annual report offers a comprehensive and integrated view of our economic, financial,environmental, value chain and social performance for 2020.

management systems and integrated into a central reporting tool, along with the economic andfinancial data.

This report is divided in 2 parts: an annual review of key performance aspects as they relate to our
Horizon 2020 strategy, followed by the full financial, environmental, value chain, social and governancestatements and notes. All elements of the Annual Report can be consulted at annualreport.umicore.com

ASSURANCEAN INTEGRATED APPROACH

One of the key objectives of this report is to reflect our integrated strategic approach which combines
economic, environmental, value chain and social performance targets. This report further refines theapproach based on elements from the “International Integrated Reporting Framework” developed by theInternational Integrated Reporting Council, which requires a more complete disclosure and discussionof the material factors influencing our business and the risks and opportunities linked to our Horizon
2020 strategy.
Umicore has aligned the corporate reporting to the non-financial reporting requirements set out in article
3:32, §2 of the Belgian Companies’ and Associations’ Code.

REPORTING SCOPE

This report has been independently verified by PwC Bedrijfsrevisoren/Réviseurs d’Entreprises (PwC).
PwC’s audit of financial information is based on full set of IFRS consolidated financial statements on
which it has expressed an unqualified opinion. For the full set of IFRS consolidated financial statements,
see the Financial Staments chapter(p. 108) and the auditor’s report thereon(p. 216).The social, value
chain and environmental information included in this report has been prepared on the basis of thesame recognition and measurement principles that have been used to prepare the social statements
chapter(p. 198), environmental statements chapter(p. 188) and value chain statements chapter(p. 181).
PwC’s report on the social, value chain and environmental statements can be found in the Assurance
reports section(p. 216).
This report has been prepared in accordance with the GRI Standards: Core option. A full GRI index canbe found on pp. 200 – 202. The Global Reporting Initiative (GRI) is a networkbased organization that
pioneered the world’s most widely used sustainability reporting framework.

This report covers our operations for the 2020 calendar year which is also the Umicore fiscal year, andreports on the progress towards our Horizon 2020 objectives. The scope of all objectives and a brief
description of the methodology behind all performance indicators are included in the statements sectionof the report. Where data are available, the performance indicators in the document are reported with acomparison base going back 5 years.

PRESENTATION & FEEDBACK

The economic scope of this report covers all fully consolidated operations and the financial contributionsof all associate and joint venture companies.

Umicore also commits to consider all improvement points recommended by the independent auditor(PwC) in its subsequent reporting cycles. General reader feedback is encouraged on both the print andonline versions of the report. Feedback received on our previous reports has been considered in the
preparation of this report.

The environmental and social scope is limited to all fully consolidated – any divergence from this scopeis explained in the relevant chapter or note in the report.

Umicore seeks to improve its reporting through a continuous process of stakeholder engagement anddialogue. The key social elements of the report are presented to the international trade unions during
the joint monitoring committee in March, while the entire document is presented to shareholders at theAnnual General Meeting in April.

To share your feedback on this report, visit:

UMICORE.COM/AR-FEEDBACKDATA

The economic and financial data are collected through our financial management and consolidation
process. The environmental and social data are collected through environmental and social data

Umicore Integrated Annual Report 2020

About this report213

GRI index
GRI
STANDARDSDISCLOSURE

PAGE REFERENCE IN ANNUAL REPORT 2020

GRI 102: GENERAL DISCLOSURES
ORGANISATIONAL PROFILE

102-20Executive-level responsibility foreconomic, environmental, and socialand societal topics

Management board(p. 66);Management approach(p. 72)

102-21

Consulting stakeholders on economic, Stakeholder engagement(p. 16);Materiality(p. 22)
environmental, and social andsocietal topics

102-1

Name of the organisation

Front cover

102-2

Activities, brands, products,
and services

About us(p. 3); Umicore at a glance(p. 5); Business model(p. 10)

102-22Composition of the highest
governance body and its committees

102-3

Location of headquarters

Inside back cover; back cover102-23102-4

Location of operations

Umicore at a glance(p. 5); Social statements: S2(p. 200);

Chair of the highest governance body Supervisory Board(p. 61);Corporate governance statements:
G2(p. 88)

102-5

Ownership and legal form

Back cover102-24102-6Markets served

About us(p. 3); Umicore at a glance(p. 5); Economic review(p. 29)

Nominating and selecting the highest Corporate governance statements: G4(p. 89)
governance body

102-7

Scale of the organisation

Umicore at a glance(p. 5); Social statements: S2(p. 200);Financial
statements: consolidated balance sheet(p. 110)102-25

Conflicts of interest

Corporate governance statements :G7(p. 92), G9(p. 93)-G11(p. 93);
Corporate Governance Charter; Code of Conduct

102-8

Information on employees andother workers

Social statements: S2(p. 200)

102-26

Role of highest governance body insetting purpose, values, and strategy

Corporate governance statements: G2(p. 88)

102-9

Supply chain

Value chain and society review(p. 39), 188-191 Value chain
statements: V2(p. 182)-V4(p. 185)102-27

Collective knowledge of highest
governance body

Corporate governance statements: G4(p. 89)

102-10Significant changes to the organisation Economic review(p. 29), Value chain statements: V4(p. 185)
and its supply chain

102-28

Evaluating the highest governancebody’s performance

Corporate governance statements: G4(p. 89)

102-11

Precautionary principle or approach

Managing risk effectively(p. 76); Key risks and opportunities(p. 78)

102-29102-12External initiatives

COSO; OECD Guidelines; ILO Human Rights; SRI, FTSE; PACI; GRI; IIRC

Identifying and managing economic,
environmental, and social andsocietal impacts

Stakeholder engagement(p. 16);Materiality(p. 22); Managing risk
effectively(p. 76);Key risks and opportunities(p. 78);Management
approach(p. 72)

102-13

Membership of associations

Stakeholder engagement(p. 16)

102-30Effectiveness of risk
management processes

Managing risk effectively(p. 76)

102-14

A statement from the most seniordecision-maker of the organisation

CEO and Chairman’s review(p. 13)

102-31

Review of economic, environmental,
and Social and societal topics

Key risks and opportunities(p. 78); Management approach(p. 72);
Corporate governance statements: G4(p. 89)

102-15Key impacts, risks, and opportunities

Key risks and opportunities(p. 78)

102-32Highest governance body’s role insustainability reporting

Management approach(p. 72)

102-33

Communicating critical concerns

Stakeholder engagement(p. 16); Corporate governancestatements: G1(p. 88), G3(p. 89), G9(p. 93), G10(p. 93), G11(p.

102-34Nature and total number ofcritical concerns

not reported

102-35

Remuneration policies

Remuneration report;(p. 94)

STRATEGYETHICS AND INTEGRITY
102-16

Values, principles, standards, andnorms of behaviour

The Umicore Way; Code of Conduct; Managing risk effectively(p.
76); Stakeholder engagement;(p. 16)Corporate governancestatements: G1(p. 88),G9(p. 93); Social statements: S5(p. 204)102-17

Mechanisms for advice and concerns
about ethics

Code of Conduct; Social statements: S5(p. 204)102-18Governance structure

Corporate governance statements: G2(p. 88), G4(p. 89), G5(p. 91);
Management approach(p. 72)

102-19Delegating authority

Management approach(p. 72)

GOVERNANCE

Supervisory Board(p. 61);Corporate governance statements:
G2(p. 88)

93);

Corporate Governance Charter;

Code of Conduct

Corporate Governance Charter;

Code of Conduct102-36

Process for determining remuneration Remuneration report(p. 94);

Corporate Governance Charter;

Code of Conduct

Umicore Integrated Annual Report 2020

About this report102-37

Stakeholders’ involvement
in remuneration

Remuneration report(p. 94);

102-38Annual total compensation ratio

Remuneration report(p. 94)

102-39Percentage increase in annual totalcompensation ratio

not reported

Corporate Governance Charter;

Code of Conduct

STAKEHOLDER ENGAGEMENT
102-40

List of stakeholder groups

Stakeholder engagement(p. 16)

102-41

Collective bargaining agreements

Social statements: S4(p. 204)102-42

Identifying and selecting stakeholders Stakeholder engagement(p. 16)

102-43

Approach to stakeholder engagement Stakeholder engagement(p. 16)

102-44

Key topics and concerns raised

Stakeholder engagement(p. 16); Materiality(p. 22)

REPORTING PRACTICE
102-45

Entities included in the consolidated
financial statements

About us(p. 3);Umicore at a glance(p. 5);Performance review(p.
28);Corporate governance statements: G2(p. 88); Financial
statements: F5(p. 129), F17(p. 146)

102-46

Defining report content andtopic boundaries

Materiality(p. 22);Management approach(p. 72)

102-47

List of material topics

Materiality(p. 22);Management approach(p. 72)

102-48

Restatements of information

Management approach(p. 72);Environmental statements: E1(p.
189); Social statements: S1(p. 199), S7(p. 205), S8(p. 208); Value
chain statements: V4(p. 185);About this report(p. 212)102-49Changes in reporting

GRI 201: ECONOMIC PERFORMANCE
201-1

Direct economic value generated
and distributed

Umicore at a glance(p. 5); Stakeholder engagement(p.
16);Distribution of economic benefits(p. 107) Financial statements:
F8(p. 135), F9(p. 136), F39(p. 177); Key figures(p. 222)

201-3

Defined benefit plan obligations andother retirement plans

Financial statements: F27(p. 157)

201-4

Financial assistance received
from government

Consolidated statement of cash flow(p. 112)

GRI 202: MARKET PRESENCE
202-2

Proportion of senior management
hired from the local community

Similar scope covered in Social statements: S2(p. 200)

GRI 203: INDIRECT ECONOMIC IMPACTS
203-1

Infrastructure investments andservices supported

Stakeholder engagement(p. 16); Environmental statements: E7(p.
195);Value chain statements: V5(p. 186); Key figures(p. 222)

GRI 205: ANTI-CORRUPTION
205-1

Operations assessed for risks related
to corruption

Managing risk effectively(p. 76)

205-2

Communication and training
about anti-corruption policies
and procedures

All employees receive informal training on the Code of Conduct
when joining the company

GRI 206: ANTI-COMPETITIVE BEHAVIOR
206-1

Legal actions for anti-competitive
behaviour, anti-trust, andmonopoly practices

About us(p. 3);Umicore at a glance(p. 5); Environmental
statements: E1(p. 189), E2(p. 189), E3(p. 192); Value chain
statements: V1(p. 182), V2(p. 182), V4(p. 185); About thisreport(p. 212)

GRI 301: MATERIALS
301-2

Financial statements: F36(p. 175)

Recycled input materials used

Umicore at a glance(p. 5); Value chain statements: V4(p. 185)

302-1

Energy consumption within
the organisation

Environmental statements: E4(p. 192)

302-3

Energy intensity

Environmental statements: E4(p. 192)

302-4

Reduction of energy consumption

Environmental statements: E4(p. 192)

102-50

Reporting period

Front cover; Inside front cover; About this report(p. 212)

GRI 302: ENERGY

102-51

Date of most recent report

Annual report website

102-52

Reporting cycle

Front cover; Inside front cover; Annual report website

102-53

Contact point for questions regarding
the report

Inside back cover; natalia.agueros@eu.umicore.com

102-54Claims of reporting in accordance with Inside front cover; About this report(p. 212)
the GRI Standards

GRI 305: EMISSIONS
305-1

Direct Scope 1 GHG emissions

102-55

GRI content index

This section; About this report(p. 212)

305-2

Energy indirect Scope 2 GHG emissions Environmental statements: E3(p. 192)

102-56External assurance

Assurance reports(p. 216)

305-7

Nitrogen oxides NOx, sulphuroxides SOx, and other significant
air emissions

GRI 103: MANAGEMENT APPROACH
103-1

Explanation of the material topic andits boundary

Materiality(p. 22); Management approach(p. 72)

103-2

The management approach andits components

Management approach(p. 72)

103-3

Evaluation of the
management approach

Management approach(p. 72)

214

Environmental statements: E3(p. 192)
Environmental statements: E2(p. 189)

Umicore Integrated Annual Report 2020

About this report
GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT
308-2

Negative environmental impacts inthe supply chain and actions taken

GRI 404: TRAINING AND EDUCATION
Value chain and society review(p. 39), Value chain statements:
V2(p. 182)-V4(p. 185)

GRI 401: EMPLOYMENT
401-1

New employee hires andemployee turnoverUmicore at a glance(p. 5); Great place to work review(p. 54); Social
statements: S2(p. 200), S3(p. 202);Key figures(p. 222)

GRI 403: OCCUPATIONAL HEALTH AND SAFETY
403-1

Occupational health and safety
management system

Management approach-social performance(p. 75);Health &Safety(p. 55);Managing risk effectively(p. 76); Social Statements
S6(p. 204)S7(p. 205), S8(p. 208),S9(p. 210);

Globalframework Agreement on Sustainable Development;
EcoVadis CSR Scorecard

404-1

Average hours of training per year
per employee

Great place to work review(p. 54); Social statements: S3(p. 202);
Key figures(p. 222)

404-2

Programmes for upgrading
employee skills and transition
assistance programmes

Great place to work review(p. 54); Social statements: S3(p. 202)

404-3

Percentage of employees receiving
regular performance and careerdevelopment reviews

Social statements: S3(p. 202)

GRI 405: DIVERSITY AND EQUAL OPPORTUNITY
405-1

Diversity of governance bodies
and employees

Great place to work review(p. 54); Corporate governancestatements: G4(p. 89); Social statements: S2(p. 200)

GRI 408: CHILD LABOR

403-2

Hazard identification, risk assessment, Managing risk effectively(p. 76); Social Statements S6(p. 204)and incident investigation

403-3

Occupational health services

Social Statements S6(p. 205),

Value chain statements: V2(p. 182)-V4(p. 185);

403-4

Worker participation, consultation,and communication on occupational
health and safety

Social Statements S6(p. 204)

sustainable cobalt sourcing online case study

408-1

Operations and suppliers at significant This element is taken into account as part of the objective onrisk for incidents of child labour“Sustainable supply”; see Value chain and society review(p. 39),
Ensuring

GRI 409: FORCED OR COMPULSORY LABOR

403-5

Worker training on occupational health Health & Safety(p. 55);Talent attraction and retention - measuresand safety
taken by Umicore(p. 85); Social Statements S6(p. 204)S7(p. 205),
S8(p. 208),S9(p. 210);403-6

Promotion of worker health403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked bybusiness relationships

Social Statements S6(p. 204)
Sustainable procurement charter
Value Chain Staments: V3(p. 184), V4(p. 185)
Social Statements S6(p. 204)

403-8

215

Workers covered by an
occupational health and safety
management system

Social Statements S6(p. 204)403-9

Work-related injuries

Great place to work review(p. 54) Social Statements S6(p. 204),
S7(p. 208); Key figures(p. 222)

403-10Work-related ill healthSocial Statements S6(p. 204)S7(p. 205), S8(p. 208),S9

409-1

Operations and suppliers at significant This element is taken into account as part of the objective onrisk for incidents of forced or“Sustainable supply”; see Value chain and society review(p. 39),
compulsory labour
Value chain statements: V2(p. 182)-V4(p. 185);
Ensuring
sustainable cobalt sourcing online case study

GRI 414: SUPPLIER SOCIAL ASSESSMENT
414-2

Negative Social and societal impacts in Value chain and society review(p. 39), Value chain statements:
V2(p. 182)-V4(p. 185)
the supply chain and actions taken

GRI 416: CUSTOMER HEALTH AND SAFETY
416-1

Assessment of the health andsafety impacts of product andservice categories

Value chain statements: V4(p. 185)

GRI 417: MARKETING AND LABELLING
Exposure hours are not reported. The number of LTAs for employees
and contractors is more relevant to supporting Umicore’s zero
LTA target

417-1

Requirements for product and service Value chain statements: V4(p. 185)
information and labelling

OTHER MATERIAL TOPICS REPORTED
Criticality of raw materials

To complement the reporting on GRI 308: Supplier Environmental
Assessment and GRI 414: Supplier Social Assessment. See 36-41
Value chain and society review(p. 39), Value chain statements:
V2(p. 182)-V3(p. 184)

Sustainable products and services

To complement reporting on GRI 301: Materials seeValue chain andsociety(p. 39);Value chain statements: V4(p. 185)

Process safety

To complement reporting on GRI 403: Occupational Health and
Safety see Social statements: S8(p. 210)

Metal emissions to air and water

To complement reporting on GRI 305: Emissions see Environmental
statements: E2(p. 189)

Umicore Integrated Annual Report 2020

About this report
STATUTORY AUDITOR'S REPORT TO THE GENERAL SHAREHOLDERS’MEETING OF THE COMPANY UMICORE ON THE CONSOLIDATED ACCOUNTSFOR THE YEAR ENDED 31 DECEMBER 2020
We present to you our statutory auditor’s report in the context of our statutory audit of the consolidated
accounts of Umicore (the “Company”) and its subsidiaries (jointly “the Group”). This report includes ourreport on the consolidated accounts, as well as the other legal and regulatory requirements. This forms
part of an integrated whole and is indivisible. We have been appointed as statutory auditor by thegeneral shareholders’ meeting of 30 April 2020, following the proposal formulated by the supervisoryboard and following the recommendation by the audit committee and the proposal formulated by theworks’ council. Our mandate will expire on the date of the general meeting which will deliberate on theannual accounts for the year ended 31 December 2022. We started the statutory audit of the consolidated
accounts of the Company before 1993.

REPORT ON THE CONSOLIDATED ACCOUNTS
Unqualified opinion
We have performed the statutory audit of the Group’s consolidated accounts, which comprise theconsolidated balance sheet as at 31 December 2020, the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity and theconsolidated statement of cash flow for the year then ended, and notes to the consolidated accounts,
including a summary of significant accounting policies and other explanatory information, and which
is characterised by a consolidated balance sheet total of kEUR 8,340,893 and a profit from continuing
operations for the period (Group share) of kEUR 130,530. In our opinion, the consolidated accounts givea true and fair view of the Group’s net equity and consolidated balance sheet as at 31 December 2020,and of its consolidated financial performance and its consolidated cash flows for the year then ended, in
accordance with International Financial Reporting Standards as adopted by the European Union and withthe legal and regulatory requirements applicable in Belgium.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable inBelgium. Furthermore, we have applied the International Standards on Auditing (ISAs) as approved by the
IAASB which are applicable to the year- end and which are not yet approved at the national level. Our
responsibilities under those standards are further described in the “Statutory auditor’s responsibilities forthe audit of the consolidated accounts” section of our report. We have fulfilled our ethical responsibilities
in accordance with the ethical requirements that are relevant to our audit of the consolidated accounts
in Belgium, including the requirements related to independence. We have obtained from the supervisoryboard and Company officials the explanations and information necessary for performing our audit. We

216

believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated accounts of the current period. These matters were addressed in the context
of our audit of the consolidated accounts as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Provision to cover costs related to the intention to buy
houses closest to the Hoboken recycling plant (Belgium) and create a green zone

Description of the key audit matter
As disclosed in Note F29, a provision of EUR 50 million was accounted for to cover costs related to
Umicore’s intention to buy houses closest to the Hoboken recycling plant and create a green zone.
These costs comprise an estimated purchase value of the houses (based on third party appraisal) tobe demolished as well as an estimate of demolition and landscaping costs. Concertation with the city
council and residents is ongoing and might result in adjustments to this cost estimate. The matter wasof most significance to our audit because the assessment process is complex and involves significant
management judgement. Assumptions and estimates used in valuing the green zone provision are,amongst others, related to:● expected number of houses that will be sold by the owners depending on the acceptance of the offer
and/or new owners that may offer their houses compared to the current situation;● expected outflow of resources to settle the obligations with the owners of the houses;● expected outflow of resources to dismantle the houses and create the green zone.
Changes in assumptions and estimates used to value the provision may have a significant effect on theGroup’s consolidated balance sheet.

How our audit addressed the key audit matter
As part of our audit procedures, we have assessed management’s process to define the expected
outflow of resources to create a green zone in Hoboken in compliance with IAS 37 requirements. We
assessed the accuracy, valuation and completeness of this provision as per 31 December 2020. This
assessment included:● meeting with the plant manager;● an analysis of the communication sent to the owners of the houses in Hoboken;● an analysis of the communication with external parties, including valuation reports of the independentvaluation expert, assigned by the Antwerp city authorities and lists of houses offered and confirmedby the city authorities;

Umicore Integrated Annual Report 2020

About this report● analysis of supplier quotations or internal engineering analyses to estimate the demolition andlandscaping costs;● evaluation of consistency in assumptions and accounting estimates applied by management;● analysis and recalculation of the cash outflow projections made by management.
Finally, we focused on the adequacy of the Company’s disclosures in Note F29 of theconsolidated accounts.

Our findings
We found that management’s estimates are reasonable and Company’s disclosures of environmental
provisions are appropriate.
Accounting treatment of hedging transactions

Description of the key audit matter
Umicore uses a number of different derivative financial instruments to hedge against currency andcommodity price risks associated with ordinary business activities. Management’s hedging policy is
documented in corresponding internal guidelines and serves as the basis for these transactions. Currency
and commodity price risks arise primarily from revenue, sales and procurement transactions (in particularcommodities). The cash flow hedges (also labelled as strategic hedges in the annual report) do meet thecriteria for hedge accounting under IFRS 9, consequently the effective portion of the changes in fair valueof the underlying derivative financial instruments are recognized directly in equity until the underlying
hedged cash flows realise. As of the balance sheet date, a cumulative EUR 12,8 million were recognizedin the fair value reserves in equity as disclosed in note F 33.1. A part of the fair value hedges (also labelled
as transactional hedges in the annual report) do meet the criteria for fair value hedge accounting under
IFRS 9 as disclosed in the accounting policies under note F 2.21.1. The hedged item and the underlying
instruments are both recognized at fair value through the income statement. There is a part of thetransactional hedging for commodities for which under IFRS 9 no fair value hedge accounting can beapplied, consisting mainly of physical back-to-back hedging set-ups without any derivative financial
instruments involved. As disclosed under note F 2.21.1, a “lower of cost or market” approach is applied on
the physical future sales and purchase commitments with customers and suppliers. We believe that thesematters were of most significance in our audit due to the high complexity and number of transactions aswell as the extensive accounting and reporting requirements under IFRS 9.
How our audit addressed the key audit matter
As part of our audit and with the help of our internal treasury experts, we assessed the contractual andfinancial parameters and reviewed the accounting treatment, including the effects on equity and profit
or loss, of the various hedging transactions. Together with these experts, we also assessed Umicore’sinternal control system with regard to derivative financial instruments, including the internal activities tomonitor compliance with the hedging policy. Furthermore, we used market data to review the method

217

applied to measure the fair value of the financial instruments. In addition, we obtained bank and broker
confirmations in order to assess the completeness and accuracy of the fair values of the recorded
hedging transactions. With regard to the expected cash flows and the assessment of the effectivenessof hedges, we essentially reviewed the prospective testing. We verified that hedges were accounted forand measured in accordance with IFRS 9. In view of the transactional hedges we audited the accuracy andcompleteness of the related derivative financial instruments via external confirmations and the reviewof the method applied to measure the fair value via market data. Moreover, for the part on which nofair value hedge accounting can be applied, the “lower of cost or market” approach applied on thephysical future sales and purchase commitments with customers and suppliers have been audited on asample basis.

Our findings
Key assumptions and hedge accounting documentation were supported by available evidence. The
measurement methods applied for the fair value determination and the disclosures in notes F 33.1 and F.
33.2 are appropriate.
Uncertain tax positions
Description of the key audit matter
Umicore has extensive international operations and is present in many different tax and legal jurisdictions
where, amongst others, transfer pricing assessments could be challenged by the tax authorities in the
different countries. The accounting for these uncertain tax positions comprise significant judgement bymanagement mainly in the area whether to recognise these uncertain tax positions and to adequately
determine provisions. Referring to notes F 2.19, F 3.6 and F 4.6 management performed a detailed
assessment of the uncertain tax positions which resulted in an provision for these uncertainties
amounting to EUR 114, 9 million. The accounting treatment of uncertain tax positions was a topic ofmost significance in our audit because the assessment process is complex and the amounts involved arematerial to the consolidated accounts as a whole.

How our audit addressed the key audit matter
We assessed the process of Umicore to gather the tax exposures of all the legal entities of the Umicore
Group. Together with our tax experts we also assessed the probability assessment prepared by Umicore
for every new and significant change in exposure identified. Moreover we have analysed the methods
applied by management, being the most likely amount or the expected value of the tax treatment when
determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates if it's
not probable that an uncertain tax position will be sustained in full. In this context we have evaluatedtax memorandums of management’s experts on the respective cases and exposures together with our
tax experts. Moreover we have analysed the consistency of tax treatments between subsidiaries andbased on experiences of Umicore in the past. We have also tested the completeness and accuracy of the

Umicore Integrated Annual Report 2020

About this reportamounts reported for taxes, including the assessment of audits by tax authorities. In this area our audit
procedures included, amongst others, an assessment of correspondence with the relevant tax authorities.
●

Our findings
Uncertain tax positions have been properly taken into account when assessing the tax provisions in the
consolidated accounts in accordance with the requirements of IFRIC 23.

RESPONSIBILITIES OF THE SUPERVISORY BOARD FOR THE PREPARATION OF THE
CONSOLIDATED ACCOUNTS

The supervisory board is responsible for the preparation of consolidated accounts that give a true andfair view in accordance with International Financial Reporting Standards as adopted by the European
Union and with the legal and regulatory requirements applicable in Belgium, and for such internal control
as the supervisory board determines is necessary to enable the preparation of consolidated accounts
that are free from material misstatement, whether due to fraud or error. In preparing the consolidated
accounts, the supervisory board is responsible for assessing the Group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis ofaccounting unless the supervisory board either intends to liquidate the Group or to cease operations, or
has no realistic alternative but to do so.

●
●

●

●

STATUTORY AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED ACCOUNTS

Our objectives are to obtain reasonable assurance about whether the consolidated accounts as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaranteethat an audit conducted in accordance with ISAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these consolidated accounts. In performing our audit, we comply with the legal, regulatory andnormative framework applicable to the audit of the consolidated accounts in Belgium. A statutory audit
does not provide any assurance as to the Group’s future viability nor as to the efficiency or effectivenessof the supervisory board’s current or future business management at Group level. Our responsibilities inrespect of the use of the going concern basis of accounting by the supervisory board are described below.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:● Identify and assess the risks of material misstatement of the consolidated accounts, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,

218

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.
Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the supervisory board.
Conclude on the appropriateness of the supervisory board’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
statutory auditor’s report to the related disclosures in the consolidated accounts or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our statutory auditor’s report. However, future events or conditions may cause the Groupto cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated accounts, including thedisclosures, and whether the consolidated accounts represent the underlying transactions and eventsin a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated accounts. We areresponsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.

We communicate with the audit committee regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit. We also provide the audit committee with a statement that we havecomplied with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our independence, andwhere applicable, related safeguards. From the matters communicated with the audit committee, we
determine those matters that were of most significance in the audit of the consolidated accounts of thecurrent period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter.

OTHER LEGAL AND REGULATORY REQUIREMENTS
Responsibilities of the supervisory board
The supervisory board is responsible for the preparation and the content of the directors’ report on the
consolidated accounts.

Umicore Integrated Annual Report 2020

About this report219

Statutory auditor’s responsibilities
In the context of our engagement and in accordance with the Belgian standard which is complementary
to the International Standards on Auditing (ISAs) as applicable in Belgium, our responsibility is to verify,
in all material respects, the directors’ report on the consolidated accounts and to report on these matters.

LIMITED ASSURANCE REPORT FROM THE INDEPENDENT AUDITOR ON
THE ENVIRONMENTAL, SOCIAL AND VALUE CHAIN STATEMENTS OF THE
INTEGRATED ANNUAL REPORT 2020 OF UMICORE ANDITS SUBSIDIARIES

Aspects related to the directors’ report on the consolidated accounts and to the other information includedin the annual report on the consolidated accounts
In our opinion, after having performed specific procedures in relation to the directors’ report on the
consolidated accounts, this report is consistent with the consolidated accounts for the year under audit,
and it is prepared in accordance with article 3:32 of the Companies’ and Associations’ Code. In the context
of our audit of the consolidated accounts, we are also responsible for considering, in particular based on
the knowledge acquired resulting from the audit, whether the directors’ report is materially misstated orcontains information which is inadequately disclosed or otherwise misleading. In light of the procedures
we have performed, there are no material misstatements we have to report to you. The non-financial
information required by virtue of article 3:32, §2 of the Companies’ and Associations’ Code is includedin the directors’ report on the consolidated accounts. The Company has prepared the non-financial
information, based on the reference framework Global Reporting Initiative (GRI) Standards. However, in
accordance with article 3:80, §1, 5° of the Companies’ and Associations’ Code, we do not express an
opinion as to whether the non-financial information has been prepared in accordance with the Global
Reporting initiative (GRI) Standards as disclosed in the directors’ report on the consolidated accounts.

This report has been prepared in accordance with the terms of our engagement contract dated 3 June
2020 (the “Agreement”), whereby we have been engaged to issue an independent limited assurance
report in connection with the Environmental, Social and Value Chain Statements in the Integrated Annual
Report 2020 of Umicore and its subsidiaries as of and for the year ended 31 December 2020 (the “Report”).

Statement related to independence● Our registered audit firm and our network did not provide services which are incompatible with thestatutory audit of the consolidated accounts, and our registered audit firm remained independent of
the Group in the course of our mandate.
● The fees for additional services which are compatible with the statutory audit of the consolidated
accounts referred to in article 3:65 of the Companies’ and Associations’ Code are correctly disclosed
and itemized in the notes to the consolidated accounts.
Other statements
This report is consistent with the additional report to the audit committee referred to in article 11 of theRegulation (EU) N° 537/2014.
Sint-Stevens-Woluwe, 22 March 2021
The statutory auditor, PwC Bedrijfsrevisoren BV / PwC Reviseurs d'Entreprises SRL
Represented by Kurt Cappoen, Bedrijfsrevisor / Réviseur d’Entreprises

The Directors’ Responsibility
The Directors of Umicore (the “Company”) are responsible for the preparation and presentation of
the information and data in the Environmental, Social and Value Chain Statements set forth in the
Integrated Annual Report 2020 of Umicore and its subsidiaries and the declaration that its reporting
meets the requirements of the Global Reporting Initiative (GRI) Standards – Core as set out on pages 181
to 210 (“the Subject Matter Information”), in accordance with the criteria stated in the Environmental,
Social and Value Chain Statements and with the recommendations of GRI Standards (“the Criteria”).
This responsibility includes the selection and application of appropriate methods for the preparation of
the Subject Matter Information, for ensuring the reliability of the underlying information and for theuse of assumptions and estimates for individual sustainability disclosures which are reasonable in thecircumstances. Furthermore, the responsibility of the Directors includes the design, implementation andmaintenance of systems and processes relevant for the preparation of the Subject Matter Information thatis free from material misstatement, whether due to fraud or error.
Our Independence and Quality Control
We have complied with the legal requirements in respect of auditor independence, particularly inaccordance with the rules set down in articles 12, 13, 14, 16, 20, 28 and 29 of the Belgian Act
of 7 December 2016 organizing the audit profession and its public oversight of registered auditors,
and with the independence and other ethical requirements of the Code of Ethics for Professional
Accountants issued by the International Ethics Standards Board for Accountants, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality
and professional behavior. Our firm applies International Standard on Quality Control (ISQC) n°1 andaccordingly maintains a comprehensive system of quality control including documented policies andprocedures regarding compliance with ethical requirements, professional standards and applicable legal
and regulatory requirements.
Auditor’s Responsibility
Our responsibility is to express an independent conclusion about the “Subject Matter Information” basedon the procedures we have performed and the evidence we have obtained. Our assurance report has

Umicore Integrated Annual Report 2020

About this report220

been prepared in accordance with the terms of our engagement contract. We conducted our work inaccordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance
Engagements Other Than Audits or Reviews of Historical Financial Information. This standard requiresthat we comply with ethical requirements and that we plan and perform the engagement to obtain
limited assurance as to whether any matters have come to our attention that cause us to believethat the Subject Matter Information does not comply, in all material respects, with the Criteria as set
by the Company. In a limited assurance engagement the evidence-gathering procedures are more
limited than for a reasonable assurance engagement, and therefore less assurance is obtained than in areasonable assurance engagement. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement in the statements of the Supervisory Board. The
scope of our work included, among other things, the following procedures:● assessing and testing the design and functioning of the systems and processes used for data­
gathering, collation, consolidation and validation, including the methods used for calculating andestimating the Subject Matter Information;● conducting interviews with responsible officers including site visits;● inspecting internal and external documents.
The scope of our work is limited to assurance over the Subject Matter Information. Our assurance does notextend to information in respect of earlier periods or to any other information included in the Integrated
Annual Report 2020 of the Company.
Conclusion
Based on our limited assurance engagement, nothing has come to our attention that causes us to believethat the Environmental, Social and Value Chain Statements as of and for the year ended 31 December 2020
on pages 181 to 210 of the Integrated Annual Report 2020 of Umicore and its subsidiaries, and Umicore’s
assertion that the Report meets the requirements of GRI Standards – Core, do not comply, in all material
respects, with the Criteria.
Other matter - Restriction on Use and Distribution of our Report
Our report is intended solely for the use of the Company, in connection with their Environmental, Social
and Value Chain Statements set forth in the Integrated Annual Report 2020, and should not be used forany other purpose. We do not accept or assume and deny any liability or duty of care to any other party
to whom this report may be shown or into whose hands it may come.
Sint-Stevens-Woluwe, 22 March 2021
PwC Bedrijfsrevisoren BV/Reviseurs d'Entreprises SRL
represented by Kurt Cappoen, Registered auditor

Umicore Integrated Annual Report 2020

About this report

221

References and key links
UMICORE

www.umicore.com

ANNUAL REPORT
annualreport.umicore.com
ANNUAL REPORT GLOSSARY
annualreport.umicore.com/glossary

BELGIAN CORPORATE GOVERNANCE COMMITTEEECOVADIS

www.corporategovernancecommittee.be

www.ecovadis.com

FINANCIAL SERVICES AND MARKETS AUTHORITY
THE UMICORE WAY
umicore.com/en/about/the-umicore-way
CODE OF CONDUCT
umicore.com/en/governance/code-of-conduct
HORIZON 2020
umicore.com/en/cases/horizon-2020
GLOBAL FRAMEWORK AGREEMENT ON SUSTAINABLE DEVELOPMENT
umicore.com/industriALLSUSTAINABLE PROCUREMENT CHARTER
umicore.com/sustainableprocurement-charter
RESPONSIBLE GLOBAL SUPPLY CHAIN OF MINERALS FROM CONFLICT-AFFECTED AND HIGH-RISK AREAS
umicore.com/responsiblesupplychain-policy
SUSTAINABLE PROCUREMENT FRAMEWORK FOR COBALT
umicore.com/sustainableprocurementcharter-cobalt
DUE DILIGENCE COMPLIANCE REPORT COBALT PROCUREMENT
umicore.com/sustainable-cobalt
CORPORATE GOVERNANCE CHARTER
umicore.com/en/governance/corporate-governance-charterumicore.com/careers
UMICORE CAREERSINVESTOR RELATIONS
umicore.com/investors
SHAREHOLDER RIGHTS
umicore.com/en/governance/shareholder-rights
UMICORE NEWSumicore.com/en/investors/news-results/press-releases

www.fsma.beOECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE SUPPLY CHAINS OF MINERALS FROM CONFLICT­AFFECTED AND HIGH-RISK AREAS
www.oecd.org/daf/inv/mne/OECD-Due-Diligence-Guidance­
Minerals-Edition3.pdf
RESPONSIBLE MINERALS INITIATIVE, FORMERLY CONFLICT-FREE SOURCING INITIATIVE
www.responsiblemineralsinitiative.org
www.responsiblemineralsinitiative.org/gold-refiners-list
www.responsiblemineralsinitiative.org/responsible-minerals-assurance-process/smelterrefiner­
lists/cobalt-refiners-list/conformant-cobalt-refiners
WBCSD GUIDANCE FOR ACCOUNTING AND REPORTING CORPORATE GHG EMISSIONS IN THE CHEMICALSECTOR VALUE CHAIN
www.wbcsd.org/contentwbc/download/2831/35596
GLOBAL BATTERY ALLIANCE : A VISION FOR A SUSTAINABLE BATTERY VALUE CHAIN IN 2030
umicore.com/globalbatteryalliance-report-2019
LONDON BULLION MARKET ASSOCIATION (LBMA)
www.lbma.org.uk/good-delivery-list-refiners­
gold-current
www.lbma.org.uk/good-delivery-list-refiners-silver-current
RESPONSIBLE JEWELLERY COUNCIL
certified-entities
ENTREPENEURS FOR ENTREPENEURS

www.responsiblejewellery.com/members/chain-of-custody­

ondernemersvoorondernemers.beUmicore Integrated Annual Report 2020

Key figures

222

Key figures(in million € unless stated otherwise)

2016

2017

2018

2019

2020
3,239

Economic performance
Revenues (excluding metal)

2,667.5

2,915.6

3,271

3,361

Adjusted EBIT

350.7

410.3

514

509

536

Return on Capital Employed (ROCE) (in %)

14.6

15.1

15.4

12.6

12.1

R&D expenditure

155.9

175.2

196

211

223

Capital expenditure

287.3

365.3

478

553

403

Adjusted EPS (in €/share)

1.07

1.22

1.36

1.30

1.34

Gross dividend (in €/share)

0.65

0.70

0.75

0.375

0.75

Social and environmental performance
Revenues from clean mobility and recycling (in%)

65

67

72

75

77

1,290

1,299

1,432

1,614

1,467

CO2e emissions (scope1+2) - Market based (in tonne)

662,059

633,704

767,702791,816

732,543CO2e emissions (scope1+2) - Location based (in tonne)

735,065

663,307785,789

815,175

747,964

Energy consumption (in terajoules)

6,737

6,532

7,458

7,476

7,591

Workforce (fully consolidated companies)

9,921

9,769

10,420

11,152

10,859Total donations, including staff freed time (in thousands of euro)

Lost Time Accidents (LTA)

59

51

61

90

49

LTA frequency rate

3.34

3.01

3.36

4.60

2.50

LTA severity rate

0.56

0.09

0.10

0.20

0.47

Exposure ratio 'all biomarkers aggregated' (in %)

3.2

2.7

2.8

1.8

1.60

Average number of training hours per employee

41.49

45.33

43.10

48.73

36.33

Voluntary leavers ratio

4.10

5.03

7.18

5.99

4.20

Umicore Integrated Annual Report 2020

Key figures

223

IF MY UNIQUENESSAND IDEASCAN SHAPE OURSUSTAINABLE FUTURE

Umicore Integrated Annual Report 2020

UMICORE.COM/CAREERS

FINANCIAL CALENDAR1

ADDITIONAL INFORMATION

29 APRIL 2021

STOCK
Euronext Brussels

General meeting of shareholders(financial year 2020)31 JULY 2021

Half year results 2021

UMICORE.COM/INVESTORSABOUT THIS REPORT
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ENVIRONMENT & VALUE CHAIN
INFORMATION
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BUSINESS ETHICS & SECURITY
Kristl Matton – Baudouin Caeymaex+32 2 227 78 37 – +32 2 227 73 32
grievances@umicore.com

1 Dates are subject to change. Please check the Umicore website for updates to the financial calendar.

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