Integrated
Annual Report 2021

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover2

Contents
3

UmicoreStrategy

4

About us5

Aiming for impact

6

Our business

9

Three complimentary Business Groups

12

Performance

13

Chairman & CEO review

14

Investing in Umicore

16

Financial

20

Operations

34

Innovation

39

Environment

43

Employees

52

Society63

Sustainable Products & Services

71

Key performance figures

78

Front cover image: Operators working at Umicore in Nysa, Poland

Leadership

79

About this report

215

Governance80

About this report

216

Supervisory Board

81

GRI/SASB index

217

Management Board86

WEF index

220

Leadership Overview

90

TCFD index

222

Management approach

92

Assurance reports

223

Risks & Opportunities

97

Glossary

233

Statements

108

Financial statements, F1-F41

109

Environmental Statements, E1-E8

181

Social Statements, S1-S7

187

Governance statements, G1-G13

200

The Umicore integrated annual report offers a comprehensive andintegrated view of our economic, financial, environmental, value
chain and social performance for 2021. This report is produced inaccordance with the GRI Standards: Core option. For more, please see
About. Definitions for the terms used throughout this report can befound in the
Glossary for the report, online.

Access all items in this report, in English and in Dutch, online, at:
ANNUALREPORT.UMICORE.COM

Umicore Integrated Annual Report 2021

Umicore at a glance
Umicore INPUT
Financial

Cashflows
over

€ 1b

Market Cap€ 8.7b

BUSINESS MODEL
Revenues

€ 4b

0.77

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

79%

46

Innovation

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

R&D sites

Environment

Employees

54%

secondarymaterials

Group employees

metals

11,050€ 22.7b
paid toSociety

18,000suppliers in87

countries

Water withdrawn

17%

megalitersof whichfrom renewableelectricity

22.5%
women

Customers

12,500in

101

countries

now-hotion kw
licapp

Chemistry
Material science
Metallurgy

10,103

metals recovered
across all recycling
activities

75

Platinum ecovadis
sustainability
ratingTop 1%

100%

green power supply

High performancefuel cells

Technologies
enabling industry
leading purity,
consistency &quality of cathodematerials

Scope 1
GHG emissions

Scope 2
GHG emissions

CO2emarket-based CO2e

New patentfamilies
registered69

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

Nationalities

Nysa site
Carbon neutral
as of start ofproduction with

28

ROCE

22.2%

15

8,308 TJ

of which,a

R&D

EnergyInput mix

€ 1.25m

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

33

Innovation at
the heart ofour sustainableproducts &services

Adjusted EBITDA

revenues fromclean mobility &recycling

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

Production sites

Operations

IMPACT ON SDGSOUTPUT

Net debt / LTM
adj. EBITDA

Retention rate

94%

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

Metal exposure
ratio

1.5%

(all biomarkers
aggregated)

Diffuse metal
emissions-35%

vs 2020 in
HobokenLost time
accidents

73

Avoided emissions
Taxes€ 202m
paid

3

35m t

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

Umicore Integrated Annual Report 2021

Strategy
About us5

Aiming for impact

6

Our business

9

Three complimentary Business Groups

124Umicore Strategy Performance Leadership Statements About Glossary Backcover

Umicore Integrated Annual Report 2021

5

About usThe global materials technology & recycling group providing tomorrow’s sustainable solutions for clean mobility and recycling
Umicore has a unique position in clean mobility
materials and recycling
Using our metallurgy, chemistry and materials science expertise,
we provide clean mobility solutions for four automotive platform
types and we recycle the materials at the end of their lifespan. This
closed-loop business model is our differentiator and continues todefine how we run our business and build our strategy.
Our automotive catalysts clean the exhaust gases from internal
combustion engines for all types of light- and heavy-duty vehicles
and our rechargeable battery materials and automotive catalysts
power hybrid, plug-in hybrid and full electric vehicles. We produce
catalysts for fuel cells and for static or industrial applications.
Umicore operates one of the world’s most sophisticated precious
metals recycling facilities and our plants can recover 28 precious
and non-ferrous metals from feed including industrial residues,
electronic scrap, batteries, automotive and industrial catalysts andfuel cells. Recovered materials are transformed into pure metals or
new products. We also provide recycling services to help maximize
customers’ efficiency.
We develop customized materials with processes that accommodate
health and safety, recyclability, cost efficiency, waste reductionand energy efficiency, in our own facilities and throughout thevalue chain.
Our success depends on balancing the economic, environmental andsocial impact of our operations.
Our integrated approach to sustainability minimizes the impact of ourindustrial operations and our commitment to ethical and responsible
sourcing delivers value and distinguishes us from our competitors.

Umicore’s positive impact enhances quality of life through products
and services, reduces harmful vehicle emissions, gives new life toused metals and powers the cars of the future.

Our mission: Materials for a better life
We believe that the materials at the core of today’s life are a key
element in furthering the progress of mankind and will continue tobe enablers for future value creation. We believe that the efficientand infinite recyclability of metal-related materials makes themvital for sustainable products and services. We want Umicore to bea leader in providing and creating material-based solutions which
contribute to fundamentally improving quality of life.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Umicore Integrated Annual Report 2021

6

Aiming for impact
Setting the course with our stakeholders

Public sector& Authorities

Suppliers

Neighbors
SocietyBusiness
partners
Customers

Employees

Shareholders& fund providers

Umicore strives to plan for the best possible future by remaining
in a healthy and competitive position whilst addressing society’s
most pressing challenges. We consider global economic, social andenvironmental megatrends through continuous dialogue with our
main stakeholders. As a publicly listed company, we interact withmany parties who have an interest in the way we conduct business.
The relationship that we foster with these stakeholders has a direct
influence on our success and our impact on society.

Stakeholder engagement at Umicore is based on a localized
approach: 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,
stakeholder relationships are primarily managed by the business
units themselves, in line with our decentralized approach tounit management. The management board receives feedback
from stakeholders in several ways, ranging from direct feedback
from visits to customers, suppliers, employees and investors, toinformation 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.

Materiality assessment
In 2020 as part of the lead-up to the Let’s Go For Zero sustainability
strategy, we conducted a materiality assessment in cooperation
with the external expert Sustainalize. The assessment identified
which topics are important to our business and our stakeholders
by applying the double materiality perspective. This allowed us toincorporate stakeholder expectations when developing our strategy.
Umicore’s material topics include issues that have a financial impact
on our business and issues that have an impact on people andthe environment. We developed an overview of issues relevant toUmicore’s business environment. The long list of relevant topics
is based on company-specific information such as Umicore’s risks
and opportunities and on sector information such as sector-specificinternational sustainability frameworks. Umicore reviewed GRI(Global Reporting Initiative), IIRF (International Integrated Reporting
Framework), SASB (Sustainability Accounting Standards Board),
WBCSD (World Business Council for Sustainable Development),
Stakeholder Capitalism metrics of the WEF (World Economic Forum),
TCFD (Task Force on Climate-related Financial Disclosures) as well as
peer reviews and performance in sustainability rating benchmarks.

To determine priorities, we conducted internal and external
dialogues with stakeholders. We first assessed our stakeholder
groups concerning the stakeholders’ interest in and influence on
Umicore. We then asked internal and external stakeholders toprioritize topics according to the influence the topics have on theirdecisions towards Umicore. Customer and supply representatives,
employees around the world and across all functions from theshop floor to senior management, shareholders and fund providers
were consulted through online surveys, workshops and interviews.
The survey and interview results were complemented with desk
research. Based on the ranking of topics in both the external
and internal consultations, a preliminary materiality matrix wasdeveloped, showing the relative importance of topics from theviewpoint of Umicore. In an interactive internal session, we analyzed
the maturity of the material topics. In addition, we assessed eachmaterial topic as to whether they are risk or opportunity driven.
Risk-driven topics are those that would pose a significant businessrisk if Umicore did not address them – linked to our ‘license
to operate’. Opportunity-driven topics are those that could create
opportunities in the market – linked to our ‘license to grow’. Mapping
the material topics as risk or opportunity driven and according to theirmaturity enabled us to visualize the topics in terms of urgency andstrategic focus.
COVID-19 had an impact on the level of materiality of topics related
to employee wellbeing and business resilience. In 2021, the matrix
was updated to reflect stakeholder feedback on the increased levelof materiality of two topics: water and waste. These topics have been
incorporated in our strategic thinking.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover2021 MATERIALITY MAP

7

Umicore Topic

Umicore Definition

Climate& environment

The impact that Umicore operations, sourcing, transportation of raw materials and finished products haveon the environment, biodiversity, climate change, mobility and the health of local communities.

Digitalization& Cybersecurity

The impact that digitalization, robust ICT systems and secure data management have on business
continuity and trust.

Employeeengagement

The impact that Umicore's job creation, inclusiveness, occupational and professional opportunities (e.g.
training) and employee wellbeing have on employee attraction, retention and/or employability.

Employee health,safety & wellbeing

The impact that materials use and transformation (e.g. WEE scraps) and occupational safety within
Umicore's own operations have on the health and wellbeing of Umicore's workforce.

Ethical supply

The impact that Umicore's commitment to securing materials from ethically managed sources,
including anti-corruption, anti-fraud, anti-money laundering and Human Rights safeguards, has on
local communities.

Innovation

The impact that a strategic focus on innovative solutions has on business continuity, sustainability
performance, availability of clean technologies and the transition to a low-carbon economy.

Investment inlocal communities

The impact that Umicore's job creation, initiatives and activities, beyond their business operations, haveon the development and wellbeing of communities impacted by operations.

Product quality &production capacity

The impact that the quality (innovative) of metal containing products and capacity volumes (meeting
demand) have on the availability and accessibility of low-carbon and clean technologies.

Product stewardship

The impact that product design (functionality, quality, durability, safety, sustainability) has on society

Responsible
Governance

The impact that responsible governance (e.g. anti-corruption, anti-fraud, anti-money laundering, anti­
discrimination, anti-harassment) and respected human rights (e.g. related to child labor, bonded labor,
safety hazards) have on business continuity and trust.

Sustainability
Governance

The impact that Umicore's sustainability governance and ESG risk and opportunity management approach
has on business resilience.

The impact that sustainable sourcing practices, the use of secondary materials, and the quality of Umicore
Sustainable sourcing &recycling services and closed loop offering have on biodiversity, the scarcity of resources, the circular
Recycling services
economy and business reslience.
Waste

The impact that the waste generated by Umicore has on resource efficiency and environment.

Water

The impact that the water used by Umicore has on resource efficiency and environment.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverInequ
Be aliti
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go st
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rn claan s
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C& leanRe M
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Ze
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STRATEGY

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Product stewardship

lp
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& len
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nt traio c
Cli n tionen m
vir ate
on &
m
en
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PRODUCTS & SERVICESeta

Umicore TopicM

Umicore ThemesRle eguga lal c toon ry&
Su text
et stahi in
ca a
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Te ppl &
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su ch
bs no
tit lo
ut gy
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In
da forta ma
pr tio
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tio
M
n
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RISK AND OPPORTUNITY

SDGs

Product quality &production capacity
Sustainable sourcing &Recycling services
Innovation
ENVIRONMENT

Climate & environment
Waste
Water

SOCIAL

Ethical supply
Employee health, safety& wellbeing
Employee engagement
Investment inlocal communities

GOVERNANCE

Responsible GovernanceDigitalization & Cybersecurity

Sustainability GovernanceOngoing stakeholder dialogue is essential in developing Umicore’s strategy and business model. This overview presents how the identified material topics are linked to our strategy, risks and opportunities as well as how they address the Sustainable Development Goals.

8Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover9

Our business
Our work in clean mobility is multifaceted. We develop automotive
catalysts to clean the exhaust gases from internal combustion
engines for light-duty and heavy-duty vehicles of all fuel types. We
also develop the rechargeable battery materials that power hybrid,plug-in hybrid and full electric vehicles. Additionally, we produce
high-performance catalysts for vehicles powered by fuel cells.
At the same time, Umicore is one of the world’s most sophisticatedrecyclers of precious and other valuable metals. Our state-of-the­art facilities can recover 28 precious and non-ferrous metals fromsources including industrial residues, used electronic scrap, batteries,
automotive and industrial catalysts, fuel cells.
As a leader in automotive catalysts and a pioneer in EV battery
materials, we aim to stay ahead of the curve. Our innovation strategy
couples Umicore’s extensive internal expertise with a collaborative
network of universities and start-ups, allowing us to respondquickly to fast-moving trends in clean mobility and recycling. Moreabout how we innovate to develop tailor-made technology for ourcustomers can be read in Innovation.

Our purpose at Umicore is to help the worldtransition to cleaner mobility by providing
hi-tech materials, including emission control
and fuel cell catalysts and a wide spectrumof rechargeable battery materials, and byclosing the materials loop.
Our mission is to provide clean mobility solutions for all automotive
platform types and to recycle these materials when they reach theend of their useful life. Using our metallurgy, chemistry and materials
science expertise and know-how, our closed-loop business model
is a powerful differentiator and the basis for our business and ourlong-term strategy.

Developing new technologies such as increasingly high performance
automotive catalyst technologies and powerful rechargeable
batteries intensifies the demand for a wide range of metals.
However, mining metals such as lithium, nickel and cobalt fromprimary sources has significant environmental impacts, including ahigh carbon footprint and disruption to nature and local communities.
Easy-to-mine deposits are increasingly scarce and ore bodies containfewer valuable minerals. Umicore’s recycling services are a solution
to help mitigate this challenging trend of resource scarcity.
The green economy is rapidly expanding to meet the urgent
demands of climate change. Umicore’s clean mobility materials
and recycling services are key contributions to a sustainability-driven
world, and we have clear targets for progress over the coming years.

Clean mobility
Umicore’s approach to achieving clean mobility is two-pronged. Our
work in battery materials and recycling supports the global shift toelectromobility, while in the short- to mid- term, we continue to focus
on catalysis technologies to improve air quality.

Global trends
Reducing air pollution is key to achieving global climate targets andsupported by increasingly stringent automotive emission legislationand public advocacy for clean air regulation. In Europe and Asia,
legislators are developing clean mobility policies to further reduce
SOx, NOx and other harmful emissions and are strengthening
emission standards to encourage the design of ever-more innovativeemission control systems.
The transport sector is the fastest growing source of global
greenhouse gases, with the largest share from road transport.
Electrified transport is essential to deliver on targets for low
carbon mobility by combining energy-efficient systems withrenewable energy sources. Incentives favoring electric vehicles are
increasing globally.

Catalysts
The road to achieving clean modes of transport begins with catalytic
converters, which reduce the emissions of harmful pollutants frominternal combustion engines. Our advanced precious metal solutions
are vital, providing highly efficient catalysts to remove harmful gases
such as nitrogen oxides (NOx). As clean air legislation becomes evermore stringent at a time when internal combustion engines are still
predominant, Umicore can help ensure that the final years of fossil
fuel transportation are less damaging to the environment.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverBatteries
Electric vehicles are increasingly part of our daily lives. Umicore
provides state-of-the art battery materials to power electric vehicles,in collaboration with key players in the market. The automotive
industry is facing huge challenges, including competitive cost/
performance ratios, fast charging times and the highest safety
standards. Today, Umicore offers its customers the best productportfolio to meet these needs. Our key offering is a wide portfolioof active cathode materials, the single most valuable component ofrechargeable lithium-ion batteries, providing longer driving ranges
and better performance to electric vehicles. While the battery packrepresents approximately 30% of the electric car’s value, the active
cathode material is worth approximately 30% of the pack’s value,
meaning Umicore provides around 10% of the overall value to electricvehicles. This significant percentage bears witness to our pioneeringrole in furthering electro-mobility.

Fuel Cells
Umicore has 30 years’ experience of manufacturing fuel-cellcatalysts for hydrogen vehicles. We have proven know-how indeveloping catalysts and scaling up to industrial-scale production,
as demonstrated by Umicore solutions that have been on the roadfor many years. Fuel cell-powered vehicles combine the advantagesof long driving ranges, short refueling times and zero emissions,making fuel cell-powered automotive particularly attractive for long­
distance or high energy haulage applications.

Recycling10

Sustainability

Developing clean mobility solutions is only the first step. At Umicore,
we understand that the positive environmental impact of ourinnovations would be diminished if the spent materials were
eventually discarded. For this reason, more than two decades ago
we created our unique closed-loop business model, in which werecover the metals and reintroduce them into the production cycle toproduce new materials.
Metals are an outstanding ingredient for sustainable materials
production because they can be recycled infinitely without losing anyof their chemical or physical properties. This allows us to use metals
produced from recycled sources, such as production scrap, residues
from customers, other industries and our own operations, as well as
post-consumer materials.
We have the expertise and know-how to determine and extract
the platinum, palladium and rhodium content in end-of-life catalytic
converters from internal combustion engines. Once recycled, these
metals can be used to produce new catalytic converters for next
generation vehicles, thus closing the materials loop. More than halfof our metal needs have been covered in this way, consistently overthe past several years.
Similarly, we have capitalized on our long track record in battery
recycling to be an early entrant in the EV battery recycling market.
Sourcing the accelerating surge for battery materials will be a
sizeable challenge across the entire value chain and we are confident
that our long-standing experience in recycling will be of benefit.
We purchase the remainder of our metal needs from sustainably
and ethically vetted primary sources, under the conditions definedinUmicore’s Global Sustainable Sourcing Policy, Umicore’s
Sustainable Procurement Framework for Cobalt and Umicore’s
guidance forresponsible global supply chain of minerals fromconflict-affected and high-risk areas.

The launch of Umicore’s Let’s Go for Zero strategy in June 2021
was an important milestone in our long sustainability journey. This
strategy is the product of Umicore’s Supervisory and Management
Boards' commitment to drive positive impact and the result of
ESG integration into both strategic thinking and disclosure. Let’s Go
for Zero builds on our long-standing leadership in clean mobility
materials and recycling and reaffirms our commitment to use ourtechnological know-how, scientific expertise and corporate reach to
be an industry leader in sustainability. Our sustainability strategy has
been defined as a caring strategy: caring about talent, about health,about safety, about the planet and about creating value for society.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Net zero Greenhouse Gas (GHG) emissions by 2035
Climate change requires action now and Umicore has chosen to act
decisively with an ambitious objective and timeline to reach net-zeroscope 1+2 GHG emissions by 2035, with intermediate milestones of
a 20% reduction by 2025 and a 50% reduction by 2030 (vs. 2019baseline). Umicore will continue to improve energy and process
efficiency and switch to renewables as fast as possible. Umicore’s
new cathode material production facility in Europe, for example, will
be carbon neutral right from the start of operations.

Minimizing environmental impact is also an important part of ourZero Harm ambition. Building on the significant achievements in thelast five years, Umicore will continue efforts to minimize emissions
to air and water and commits to reduce diffuse metal emissions by
25% by 2025 compared to 2020. In the course of 2022, Umicore will
also define a target on water.

Zero inequality

Because meaningful impact on climate change means mobilizing
our value chain, Umicore will work with suppliers to reduce scope 3
GHG emissions and will define a target in the course of 2022, alignedwith the objectives of the Paris Agreement. Umicore has formallycommitted to the SBTi process as the external validation tool for ourdecarbonization targets.

Umicore firmly believes that diversity of thought leads to moreinnovation, ultimately benefiting its business and sustainability
strategy. The Group aims to further promote diversity and inclusion
by seeking broader cultural representation in its management teams
and an increased number of women in management, reachinggender parity in management, with an intermediate milestone of atleast 35% women in management by 2030.

Zero harm

Best in class governance

The wellbeing and safety of our people is the focus of the Zero
Harm ambition. Establishing and promoting a global caring safety
culture is the most meaningful way to ensure health and safety for all
our employees worldwide. Efforts to eliminate occupational-related
health risks will be pursued, with the goal of leading the industry
by setting voluntary, science-based targets for potentially hazardous
exposure to metals.

Umicore has implemented a new ESG organization (see Management
approach) to steer progress towards our ambitions and will propose
to shareholders a new executive remuneration policy tied to the Let’s
Go For Zero strategy.

Our Zero Harm ambition is also linked to our continued commitment
to sustainably and ethically sourced raw materials. Beyond ourlong-standing approach to protecting Human Rights in our supply
chain, most notably for ethical cobalt sourcing, and in light of
the accelerating transition to electromobility, it is crucial to secure
reliable supply of raw materials that is also environmentally andsocially responsible. Umicore will further build on its long track recordand due diligence in the sourcing of critical raw materials.

Umicore is also aiming for full disclosure on impact, with increased
reporting (e.g., emissions and water), as well as expanded reporting
framework use (see GRI/SASB index and WEF index). We know andunderstand the importance of climate resilience, which are overseen
at both Management Bard and Supervisory Board levels, and wewill begin reporting using the recommendation of the Task Forceon Climate-related Financial Disclosures (TCFD, see TCFD index). Our
new integrated annual report structure and contents are designed
to provide additional visibility and clarity on the impact and value
Umicore contributes to society (see Umicore at a glance , Society,
Sustainable Products & Services and our reporting on the Sustainable
Development Goals in Maximizing positive impact).
Finally, as a key player in the transition to a low carbon economy,
Umicore will favor sustainable funding instruments.

Umicore Integrated Annual Report 2021

11

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

12

Three complimentary Business Groups
Our business enables a more sustainable world, combining cutting-edge technologies & recycling to give new life to used metals

Catalysis

Energy & Surface Technologies

Recycling

Reducing harmful emissions

Powering the future

Giving new life to used metals

AUTOMOTIVE CATALYSTS
We are one of the leading producers of emission control catalysts
for gasoline and diesel on-road and non-road applications,power generation and industrial processes to meet environmental
standards around the world.
FUEL CELLS & STATIONARY CATALYSTS
We are a leading player in emissions control catalysis for industrial
plants and shipping, and supply state-of-the-art fuel cell catalysts forzero emission mobility and green hydrogen production.
PRECIOUS METALS CHEMISTRY
We are experts in metals-based catalysis for life-enhancing
applications. Emission treatment technologies, cancer treatments,
the production of fine chemicals and advanced electronics – all are
made possible by our organometallic technology know-how.

COBALT & SPECIALTY MATERIALSWe are experts in sourcing, production and distribution of cobalt
and nickel products. Our materials are at the heart of everyday
products such as rechargeable batteries, tools, paints and tyres. Our
recycling and refining processes, including our proprietary lithium­
ion rechargeable battery recycling technology, give new life to cobalt
and other metals.
ELECTRO-OPTIC MATERIALSWe are a leading supplier of material solutions for the space, optics
and electronics sectors, including products for thermal imaging,wafers for space solar cells, high brightness LEDs and chemicals forfiber optics.
METAL DEPOSITION SOLUTIONS
We are one of the world's leading suppliers of products for (precious)
metal-based electroplating and PVD coating of surfaces in the nanoand micrometre range. Our solutions for the highest demands areused in many products of daily use or enable their production in thefirst place.
RECHARGEABLE BATTERY MATERIALSWe are a pioneer in battery materials and a leading cathode material
supplier for rechargeable lithium-ion batteries, giving added range
and performance to electric vehicles, and longer battery life forportable electronics.

BATTERY RECYCLING SOLUTIONS
Our leading technology closes the loop for rechargeable batteries.
We use proprietary high-quality recycling processes to recover all
valuable metals in an environmentally sound manner. We offer aunique sustainable and circular approach.
JEWELRY & INDUSTRIAL METALSWe are experts in developing products and processes based on
precious metals such as gold, silver and platinum. Our customers use
these materials to make fine jewelry, coins, high-purity glass andindustrial catalysts. We provide our customers with sustainable andresponsible sourcing of these metals and closed-loop recycling.
PRECIOUS METALS MANAGEMENT
We supply and handle all precious metals, ensuring physicaldelivery by using both the output of our precious metals refineries
and our network of industrial partners and banks. We offer ourcustomers tailor-made solutions for delivering, hedging and trading
precious metals.
PRECIOUS METALS REFINING
We operate the world’s most sophisticated precious metals recycling
facility and we are experts in treating the most complex materials.
Our refining and recycling technology gives used metals a new leaseof life. Our processes help bring value to the circular economy.

Umicore Integrated Annual Report 2021

Performance
Investing in Umicore

16

Financial

20

Operations

34

Innovation

39

Environment

43

Employees

52

Society63

Sustainable Products & Services

71

Key performance figures78

13

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Chairman & CEO review
MATHIAS MIEDREICH CEO& THOMAS LEYSEN CHAIRMAN

Mathias Miedreich, Thomas Leysen and former CEO Marc Grynberg at Umicore's

Umicore Integrated Annual Report 2021

14

As we reflect on yet another year that was challenging for somany, we see the mark of Umicore’s resilience, and the agility,
creativity and commitment of Umicore colleagues globally, by
posting impressive results.

close to €1 billion. This allowed us to reduce our net debt and our
gearing ratio. Our balance sheet is strong with net financial debt of€ 960 million, down from around € 1.4 billion at the end of 2020,
corresponding to a 0.77 net debt/LTM adj. EBITDA ratio.

In the first half of 2021, Umicore benefited from a sharp recovery
of demand for its clean mobility materials from the automotive
industry after the severe downturn caused by the COVID-19 pandemic
in 2020, as well as a strong boost from record precious metal prices.
Despite the disruption in global car production in the second half ofthe year as a result of the semiconductor shortage, Umicore posted
record revenues and earnings for the full year. This achievement
reflects strong underlying growth and operational performanceacross business groups.

Strategic growth projects continued in 2021 and Energy & Surface
Technologies accounted for close to 60 % of Group capital
expenditures, driven by Rechargeable Battery Materials’ European
expansion investments.

Revenues increased by more than 20% in 2021, while profitability
nearly doubled. Excluding the year-on-year precious metal priceeffect, our 2021 operating profit increased byabout € 160 million
compared to 2020, 30% growth achieved through operational
business performance and volume growth. This meant that margins
increased substantially for our three Business Groups.

site in Hoboken, Belgium

Revenues in Catalysis strongly outperformed the car market as aresult of market share gains in the European and Chinese light-duty
gasoline markets, a favorable platform mix and strong demand for
Umicore’s heavy-duty diesel and fuel cell catalysts. Revenues inEnergy & Surface Technologies increased, reflecting higher sales
volumes of cathode materials for EVs in Rechargeable Battery
Materials, an exceptionally strong demand in Cobalt & Specialty
Materials and in Metal Deposition Solutions. Recycling posted record
revenues and earnings, significantly above the previous record levelsof 2020, driven by robust operational performance in the various
business units, strong contribution from the trading activities andpeaking precious metals prices.
Our operations generated cashflows of over € 1.4 billion, up from€ 603 million in 2020. Our free cash flow from operations grew to

In December, Umicore and Volkswagen AG announced their intention
to create a joint venture for the production of precursor and cathodematerials in Europe to supply Volkswagen AG’s European battery cell
production. This partnership will further diversify Umicore’s customer
base and will support VW in their ambitious electrification strategy.
The JV will be a contributor to the ambitions of the European Green
Deal, including the establishment of a European sustainable battery
supply chain.
The launch of our Let’s Go For Zero strategy (Zero GHG emissions,
Zero Harm, Zero Inequality) in the course of 2021 was an importantmilestone in our long sustainability journey. We unveiled our new
ambitions and announced explicit targets for 2030 and beyond. Since
then, we have implemented a new ESG governance organization thatwill allow us to steer the progress in achieving our ESG targets. This
year’s integrated annual report structure and contents are designed
to provide additional visibility and clarity on the impact and value
Umicore contributes to society.
In terms of climate action, Umicore has set a target for Net Zeroscope 1+2 GHG emissions by 2035, with intermediate milestones of
a 20% reduction by 2025 and a 50% reduction by 2030. Umicore
also committed to setting a scope 3 target in 2022. In 2021, Umicore
concluded a long-term power purchase agreement to supply ourgreenfield plant in Nysa, Poland with renewable electricity – making
it the first cathode materials production plant in Europe to be carbon
neutral as of start of production. Since April 2021, Umicore has been

Umicore Strategy Performance Leadership Statements About Glossary Backcoversupporting the Task Force on Climate-Related Financial disclosure(TCFD) and since then, we have defined key milestones for our
TCFD implementation and conducted a qualitative scenario analysis.
Umicore committed to the Science Based Targets initiative (SBTi) in
October 2021.
The wellbeing and safety of our people is the focus of the Zero
Harm ambition we announced. In light of the ongoing COVID-19
pandemic, strict health and safety precautionary measures remained
implemented at all Umicore sites in 2021. Unfortunately, our 2021
safety performance was disappointing with 73 lost time accidents
compared to 49 in 2020. Over the course of the year, Umicore
continued with the roll-out of programs aimed at creating a more
prominent safety culture with a focus on growing the safety mindset
and lowering the risk tolerance level. We are also further reinforcing
processes and safety standards, in particular in those business units
and sites where the safety performance was unsatisfactory. Umicore
is committed to ensuring the highest level of occupational safety inall its facilities.
Our Zero Harm ambition is also linked to our continued commitment
to sustainably and ethically sourced raw materials. Beyond ourlong-standing approach to ethical cobalt sourcing, and in light of
the accelerating transition to electromobility, it is crucial to secure
reliable supply of raw materials that is also environmentally andsocially responsible. We signed long-term sustainable lithium supply
agreements in October 2021. Umicore maintained its Platinum
EcoVadis rating in 2021, placing us among the top 1% of ourindustry peers in the EcoVadis global network of over 65,000 rated
companies. The growing added value of our sustainable business isdemonstrated by over 54% 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 sustainably closing the loop andrecovering the scarce metals used in these products when they reachend of life.
Finally, minimizing environmental impact is also an important partof our Zero Harm ambition. Umicore committed to minimizing all
emissions with a target of -25% diffuse emissions by 2025. As aresult, we accelerated investments in the Hoboken plant: taking

additional actions to further reduce diffuse emissions and to create agreen zone to increase the distance between the residential area andour operations. Umicore also committed to defining a target on water
use in 2022.
The Zero Inequality ambition we announced confirms our firm
belief that diversity of thought leads to more innovation. We willfurther promote diversity and inclusion, by seeking broader culturalrepresentation in management teams and increasing the number ofwomen in management. Umicore has set a target of gender parity
in management with an intermediate milestone of at least 35%
women in management by 2030. In 2021, the number of Umicore
employees in the fully consolidated companies rose to 11,050 from10,859 in 2020. The most significant increase relates to the further
development of the cathode materials production site in Poland.
In 2021, the share of women recruited into management positions
increased to 45%, up from 30% in 2020.
Technology and innovation remain central to our strategy, andconsequently R&D expenditure has been increased by 10% vs.
2020 to € 245 million. This increase is related to new productand process technologies for next generation Lithium Ion Battery
Materials, Solid State Batteries and Fuel Cell Catalysts, increased
effort on Battery Recycling and advanced technology development
related to decarbonization and emission reduction programs tomeet our ambitious sustainability targets. Umicore also increased
efforts in corporate mid- to long-term technology development andopen innovation collaboration programs. The R&D spend represented
6% of Umicore’s 2021 revenues and capitalized development costs
accounted for € 28 million of the total.
We are proud of our performance and results in 2021 and again expect
a strong underlying performance in 2022 across all Business Groups,
despite cost inflation and provided that geopolitical developments,
the pandemic or supply-chain constraints do not result in additional
material disruptions to the economy or to Umicore’s operations.
At the time of writing this, a bitter war is raging in Ukraine. Together
with Umicore colleagues, we are engaging in humanitarian support
initiatives in response to the human tragedy unfolding in Europe. It is

Umicore Integrated Annual Report 2021

15

too early to assess the medium and long term impacts on Umicore's
business. It is clear, however, that Umicore's products and services
will be needed more than ever.
On June 22, 2022 we will host a Capital Markets Day to set out
Umicore’s strategic roadmap, with mid- to long-term considerations
for our businesses, that build on our leadership positions in clean
mobility materials, in recycling, and in sustainability.
As we close this review, we would again like to express our thanks
to all our stakeholders for their contribution to our record-breaking
performance in 2021, most especially to the Umicore colleagues. A
special word of thanks goes to Marc Grynberg, who led Umicore
as CEO for almost 13 years and brought the company to its present
level of success. It is his legacy on which we will further build.
We are looking forward to further progress in 2022 and we firmly
believe that Umicore is in a strong position to creating value for all
our stakeholders.
Finally, we are closely monitoring the crisis in Ukraine. Umicore
strongly condemns all acts of war and violence. Together with
Umicore colleagues, we are engaging in humanitarian support
initiatives in response to the human tragedy unfolding in Europe.

MATHIAS MIEDREICH, CEO& THOMAS LEYSEN, CHAIRMAN

Umicore Integrated Annual Report 2021

Investing in Umicore

16

Umicore Strategy Performance Leadership Statements About Glossary Backcover€ 2.77SHARE PRICE
Euros

60
50
40
30
20
10
0

21
21
21
21
21
21
21
21
21
21
21
21
.20 0.20
.20
.20
.20
.20
.20
.20
.20
.20 12.20 2.20
.09
.08
.
.07
.11
.02
.06
.1
.05
.04
.03
.1
04
31
04
04
04
04
04
04
04
04
04
04

21

.20

.01

04

EARNINGS PER SHAREGROSS DIVIDEND

0.80

0.750
0.375

0.75

0.70

Euros

2017

2018

2019

2020

2021

BASIC ADJUSTED EPS

2017

2018

2019

1.34

1.30

1.36

1.22

2.77

Euros

2020

2021

Investing in Umicore is an investment
in Materials for a Better Life – our
mission – supporting our growth andsustainability strategy.
Sustainability at Umicore is not only about minimizing the impact of
our industrial operations, but also, first and foremost, about creating
a positive impact on society. We will continue to harness all ourcapabilities and provide solutions to some of the most pressing
societal challenges, including the need for cleaner mobility, the needfor a circular economy or the need to address climate change withspeed and decisiveness.
Our Let’s go for Zero strategy encompasses bold new ambitions and astrong corporate purpose and is supported by increased transparency
and disclosure as well as best-in-class governance.
Our healthy capital structure provides funding headroom to execute
our growth strategy while remaining equivalent to an investment
grade credit status. Sustainable instruments are henceforth being
favored in funding for Umicore and we recently concluded our
first sustainability-linked loan, which for the first time ties ourfunding costs to our sustainability performance. This loan successfullyrefinances an existing € 300 million syndicated credit facility.

Umicore Integrated Annual Report 2021

17

The Umicore share
Umicore shares are listed on the Euronext stock exchange. The total
number of outstanding and fully paid-up shares, and the numberof voting rights, are 246,400,000. During the year Umicore used
1,692,190 of its treasury shares in the context of the exercise ofstock options and 110,500 for shares granted. In the course of 2021,
Umicore bought back 1,270,000 of its own shares. On 31 December
2021, Umicore owned 5,200,995 of its own shares representing 2.11%of the total number of shares issued as at that date.
For the majority of 2021 the Umicore share price was subject tovolatility, mainly driven by the market.
The share price started the year at € 40.15 and peaked at a historiclevel of € 60.00 on 13 August after a strong rally in July fueled bypositive news flow on electric vehicles. Our record first half results
were published at the end of July, driven by a strong underlying
performance and high precious metal prices.
In a context of semiconductor supply shortages impacting theautomotive industry and the related limited visibility, declining PGM
prices, and continued uncertainty about the COVID pandemic, theshare price gradually decreased from mid-August to reach levels in
the mid- €40s by early December.
Our guidance release indicating significant earnings recalibration
with respect to market expectations for the business group Energy& Surface Technologies over the 2022-2023 period triggered a sharp
share price reaction in December, finishing the year at € 35.75.
Changing perceptions of the cathode materials market by part of thefinancial community had also generated an overall critical backdrop.

Shareholder returns
Umicore aims to create value for its shareholders. There is no
fixed pay-out ratio and the dividend policy supports a stable to
growing dividend.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Umicore’s supervisory board will propose a gross annual dividendof € 0.80 per share for the full year 2021. This compares to a full
dividend of € 0.75 per share paid out for the financial year 2020.
Taking into account the interim dividend of € 0.25 per share paidout on 24 August 2021 and subject to shareholder approval, a grossamount of € 0.55 per share will be paid out on 4 May 2022.

Engagement with shareholders and investors
Umicore has a high free float with a broad base of international
shareholders which at the end of 2021 were primarily situatedin Europe and North America. The overview of shareholders
holding voting rights equal to 3% or more and analyst researchand consensus information can be 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 andgrowth opportunities.
Umicore strives to provide timely and accurate information on its
strategy, performance and prospects to its shareholders. Umicore
will be further increasing transparency and disclosure and the first
effects of this decision were visible in the announcement of theFull Year results for 2021. The Let’s go for Zero strategy also calls
for more disclosure on ESG topics, which has been integrated into
this Annual Report and will be expanded in reports for the coming
years. A new chapter on EU Taxonomy [hyperlink to EU Taxonomy]
reports on the Umicore business activities that contributed to thetwo EU Taxonomy objectives of Climate Change mitigation andClimate Change adaptation. Umicore is also aligning with TCFD
recommendations to improve and increase reporting of climate­
related risks and opportunities.
The Let’s Go for Zero strategy creation process was based on amateriality analysis in which players from the financial community
were included. We continued to receive feedback from investors
through interviews and ongoing dialogue, which strongly impacted

the new strategic thinking on targets, disclosure and governance.
In particular, a new remuneration policy will be submitted to theshareholders at the Annual General Meeting on 28 April 2022,
explicitly integrating ESG targets in management’s remunerationand providing more disclosure on performance and weighting, withspecific numerical targets.
2021 was another unusual year. Following the COVID-induced
downturn in 2020, the first half of 2021 saw a strong recovery indemand in most of Umicore’s end-markets and a peak in precious
metal prices. However, precious metals prices declined in the second
half and severe disruption to the automotive industry was causedby the chip shortage. At the same time, Umicore was exposed toa less favorable platform and customer mix in its battery materials
business. Despite these factors, 2021 was another record year interms of revenues and earnings, after the records achieved in 2020.
The 2021 results reflect the convergence of a strong operational
performance in almost all our business units, with margins growing
sustainably. A further strong external tailwind was provided in
the form of record precious metal prices. These combined factors
far outweighed headwinds such as higher raw material costs,
higher fixed costs related to our growth projects and additional
R&D spending.
The main topics discussed with investors in 2021 included the factors
mentioned above, together with commercial announcements, thelaunch of our Let’s go for zero strategy, the transition to our new CEO
in October and other changes in the management board, including
the appointment of a Chief Strategy Officer in December.
In addition to the publication of press releases and the Annual Report,
Umicore’s management and Investor Relations team communicatedin 2021 with investors during virtual roadshows in North America,
Europe and Asia, as well as through virtual investor conferences,webcasts (on 2 June an on-line capital markets day on our Let’s
Go for Zero strategy), conference calls (such as on Umicore’s
position in the hydrogen economy) and the Annual General Meetingof shareholders. Umicore’s disclosure covers both financial and18

Environmental, Social and Governance (ESG) performance and weregularly engage with our investors on those topics.
On 22 June 2022 Umicore plans a Capital Markets Day where theManagement Board will set out our strategic roadmap to further build
on our leadership positions in clean mobility materials and recycling
and our pioneering approach to sustainability. Topics that will be
addressed include:● the growth prospects in our key markets, in particular
the expected drive train transitions in the automotive andtransport industry● our ambition and capabilities to capture in full the anticipatedexponential growth in demand for Rechargeable Battery
Materials to power EVs, while delivering sustainable returns● the value creation potential over the next decade of Umicore’s
Automotive Catalysts activities in a context of declining internal
combustion engines volumes● the resilience and strong underlying performance of the Umicore
businesses, including Precious Metals Refining, in less favorable
metal price conditions● our ambition and plan to capture growth from the next waveof sustainability-driven markets, such as fuel-cell catalysts andbattery recycling● our initiatives to secure our position as an industry leader insustainability, technology and operational excellence.
For more, visit:

UMICORE.COM/INVESTORS

Denominator elements
2021
Total shares issued as at 31 Decemberof which treasury shares

246,400,000
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
Adjusted weighted average number of outstanding shares

1,183,525
241,773,075

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover19

Key figures per share(In €/share)

Note

2017

2018

2019

2020

2021

Basic adjusted EPS

F39

1.22

1.36

1.30

1.34

2.77

EPS – basic

F39

0.97

1.33

1.20

0.54

2.57

EPS – diluted

F39

0.96

1.31

1.19

0.54

2.56

0.70

0.75

0.375

0,75

0.80

(1.74)(2.53)(1.13)

0,41

3.27

Total assets, end of period

23.31

25.11

29.17

34.66

37.50

Group shareholders’ equity, end of period

8.21

10.83

10.77

10.63

12.91

High

39.88

53.14

43.85

47.49

60.08

Low

24.28

34.17

25.11

29.76

34.13

Average

31.45

45.01

34.24

39.02

48.60

Close

39.46

34.86

43.36

39.29

35.76

Gross annual dividend for the year
Net cash flow before financing, basic

F34

SharepriceUmicore Integrated Annual Report 2021

Financial
Link to strategic topics
Clean Mobility & Recycling
Sustainability

Link to key risks & opportunities
Climate & environment, Information security & dataprotection, Market, Metal price, Regulatory & legal context,
Sustainable & ethical supply, Talent attraction & retention,
Technology & substitution

Link to Sustainable Development Goals

20

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverGroup

Substantial growth in revenues and earnings
driven by strong underlying operational
performance in all business groups, further
supported by an exceptional precious metal
price environment.

GROUP ADJUSTED EBITDA
Millions of Euros

GROUP REVENUES (EXCLUDING METAL)

2017

2018

2019

2020

1,251
804

599
2018

720

527

3,963

3,239

3,361

3,271

2,916

Millions of Euros

2017

2019

2020

Umicore posted all-time record revenues and earnings in 2021,
despite the severe disruption in global car production in the second
half of the year as a result of the semiconductor shortage. Thisoutstanding achievement reflects a substantial outperformance of
the automotive market and high operational efficiency in Catalysis,a sharp demand recovery in key end-markets and higher sales
volumes of EV cathode materials in Energy & Surface Technologies
as well as a robust operational performance and optimized input
mix in Recycling. The exceptional precious metal price environment
provided an additional tailwind to this strong underlying growth andoperational performance, contributing approximately € 270 million
to adjusted EBIT compared to 2020.

2021

2021
GROUP NET DEBT / LTM ADJUSTED EBITDA

2017

960

861

840

Europe | 45
APAC | 36
N. America | 12
S. America | 4
Africa | 3

1,414

1,443

GROUP REVENUES BY GEOGRAPHY (EXCLUDING METALS)
%

2018

2019

2020

2021

GROUP GEARING RATIOGROUP RETURN ON CAPITAL EMPLOYED (ROCE)

31
1.40x

%

2

1.19x
24

1.92x
35

1.76x
35

23
0.77x

1

22.2
15.1

2017

15.4

2018

0

12.6

12.1

2019

2020

2017

2021

2018

2019

2020

2021

21

Revenues for the full year grew by 22% to € 4.0 billion and adjusted
EBIT increased 81% to € 971 million. Excluding the approximate€ 270 million precious metal price impact, adjusted EBIT increased
30% to reach approximately € 700 million. Adjusted net profit of
the Group more than doubled to € 667 million. Cash conversion
came in at record levels with adjusted EBITDA growing 56 % to
€ 1,251 million, net working capital decreasing by € 167 million
and capital expenditure stabilizing at € 389 million. Net financial
debt was reduced by € 454 million to € 960 million or 0.77 times
LTM adjusted EBITDA. Umicore recently signed its inauguralsustainability-linked loan.
Revenues in Catalysis reached record levels with strong growthacross business units. Automotive Catalysts outperformed the global
car market. This was enabled by market share gains and a favorable
platform mix in the European and Chinese light-duty gasoline
markets, particularly strong demand for Umicore’s China V heavy­
duty diesel catalysts in the first half. Sales volumes of fuel cell
catalysts were also well up. This strong operational performance wasUmicore Strategy Performance Leadership Statements About Glossary Backcoverfurther supported by efficiency improvements and high PGM prices
and resulted in a record adjusted EBIT of € 326 million.
Revenues and earnings in Energy & Surface Technologies
increased, reflecting higher sales volumes of EV cathode materials
in Rechargeable Battery Materials and an extraordinarily strong
contribution of the Cobalt & Specialty Materials and – to a lesser
extent - Metal Deposition Solutions business units. Adjusted EBIT
increased to € 139 million, despite higher fixed costs related
to recent and ongoing expansions and higher R&D spending inbattery materials.
Recycling posted record revenues and earnings, significantly above
the previous record levels of 2020, driven by a robust operational
performance in the various business units, a strong contribution
from the trading activities and an exceptional precious metals
price environment.

Strong operational business performance
improvement and significant precious metal
price effects
Strong operational performance drove approximately an€ 160 million year-on-year increase in adjusted EBIT. This corresponds
to some 30% adjusted EBIT growth compared to the 2020 adjusted
EBIT of € 536 million and reflects a significant and sustainable
performance uplift, growing adjusted EBIT over-proportionally to theunderlying revenues and thus improving EBIT margin.
On top of this, it is estimated that the year-on-year price impact of the
exceptional precious metal price context on Umicore’s 2021 adjusted
EBIT amounted to approximately € 270 million, including the effect ofstrategic hedges and the price benefit on higher volumes. More than
75% of this tailwind was in Recycling and was linked to the higher
rhodium price.

Umicore Integrated Annual Report 2021

22

PGM prices, in particular rhodium and palladium, have increased
substantially since 2019, reflecting a tighter market, driven by
growing demand from the automotive industry as a result of more
stringent emission norms. Both metals reached their historical peak
price in the first half of 2021, followed by a price correction in thesecond half of 2021 due to the impact of the semiconductor shortage
on global car production which in turn impacted PGM demand forautomotive catalysts. Despite ending the year below the price levels
at the start of 2021, the average prices for these metals for the fullyear 2021 remained well above the average price levels of 2020.
Other precious metal prices such as gold and silver also traded atprices well above historic averages in 2021.
Due to significant existing strategic hedges, Umicore was lessexposed to the fluctuation in gold and palladium prices. It was,however, fully exposed to the fluctuation in rhodium price. Seefinancial review section for more details on Umicore’s current
strategic metal hedges.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

23

Group key figures
2017

2018

2019

2020

2021

Total turnover

12,277

13,717

17,48520,71024,054

Total revenues (excluding metal)

2,916

3,271

3,361

3,239

3,963

Adjusted EBITDA

599

720

753

804

1,251

Adjusted EBIT

410

514

509

536

971

30

5

11

8

21

(46)

(14)

(30)

(237)

(75)

of which associates
EBIT adjustments
Total EBIT

343

500

479

299

896

Adjusted EBIT margin

13.1

15.5

14.8

16.3

24.0

Return on Capital Employed (ROCE) (in %)

15.1

15.4

12.6

12.1

22.2

Effective adjusted tax rate (in %)

25.7

24.4

24.7

24.2

23.1

Adjusted net profit, Group share

267

326

312

322

667

Net profit, Group share

212

317

288

131

619

R&D expenditure

175

196

211

223

245

Capital expenditure

365

478

553

403

389

Net Cash flow before financing

(381)

(604)

(271)

99

787

Total assets, end of period

5,116

6,053

7,023

8,341

9,045

Group shareholders' equity, end of period

3,113

1,803

2,609

2,593

2,557

Consolidated net financial debt, end of period

840

861

1,443

1,414

960

Gearing ratio, end of period

31.1

24.4

35.2

35.0

23.3

Net debt / LTM adjusted EBITDA

1.40x

1.19x

1.92x

1.76x

0.77x

Capital employed, end of period

3,003

3,802

4,442

4,457

4,377

Capital employed, average

2710

3,344

4,048

4,451

4,384

Umicore Integrated Annual Report 2021

2020

2021

2017

2019

CATALYSIS CAPITAL EXPENDITURE

Millions of Euros

Millions of Euros

2020

2021

104

45

79

234

264

237

224

402

CATALYSIS ADJUSTED EBITDA

142

147

135
2018

70

2019

120

1,360
2018

64

2017

1,687

Millions of Euros

1,364

Millions of Euros

1,460

CATALYSIS R&D EXPENDITURE

1,253

CATALYSIS REVENUES (EXCLUDING METAL)

139

Umicore Strategy Performance Leadership Statements About Glossary Backcover

2017

2018

2019

2020

2021

2017

2018

2019

2020

2021

CATALYSIS RETURN ON CAPITAL EMPLOYED (ROCE)

Millions of Euros

%

168

185

2017

2018

2019

16.3
14

2020

18.7

13.6

154

165

326

CATALYSIS ADJUSTED EBIT

9.6

2021

2017

2018

2019

2020

2021

24

The Catalysis business group delivered arecord performance in 2021, posting an
increase in revenues of 24% to reach€ 1,687 million with strong growth acrossbusiness units.
Automotive Catalysts outperformed the global car market, which
was severely impacted by the semiconductor shortage andcontracted by 1.7% year on year for ICE (internal combustion engine)vehicles, including HEV/PHEVs. This outstanding performance wasdriven by further market share gains and a favorable platform mix
in light-duty gasoline applications in Europe and China as well as
strong demand for China V heavy-duty diesel catalyst technologies
in the first half of 2021 - ahead of the nationwide adoption of China
VI. The business group also benefited from a substantial increasein sales volumes in the Fuel Cell Catalysts activity, reflecting a
successful expansion of its customer portfolio in China, as well as
higher revenues in the Precious Metals Chemistry business unit.
Adjusted EBIT and adjusted EBITDA, which amounted to€ 326 million and € 402 million respectively, also reached record
levels, reflecting a strong operating leverage effect from the
combination of substantially higher revenues with structural cost
reductions resulting from production footprint adjustments as well as
strict manufacturing and SG&A cost management. The favorable PGM
metal price environment provided an additional uplift in earnings.
This record performance was particularly driven by a strong first halfof the year, as the release of pent-up demand, high plant productivity,
the strong demand for China V heavy-duty diesel technologies
and record PGM prices converged into peak margins. Margins inthe second half normalized well above historic levels on the backof lower volumes due to the semiconductor shortage, some cost
inflation towards the end of the year and lower PGM prices.

Umicore Strategy Performance Leadership Statements About Glossary Backcover2021 turned out to be another challenging year for the automotive
industry, after a difficult 2020 in which global car production was
profoundly impacted by the COVID-19 pandemic. While the startof 2021 showed promising signs for a recovery of the automotive
industry, with a 27% year-on-year increase in the first half of 2021,
car production plummeted in the second half as a result of a severe
shortage in semiconductor supply, which caused car OEMs to reduce
production or even completely stop assembly lines. As a result of thisdecline in the second half, global ICE car production for the full year
2021 contracted by 1.7%.
Against this challenging backdrop, Umicore’s Automotive Catalysts
delivered record results, outperforming the global ICE car market
both in volumes and revenues (+18.5% year on year). This growth,
although more weighted in the first half as a result of the specificmarket context, reflected a favorable platform mix and market sharegains in light-duty gasoline technologies, particularly in Europe andChina, as well as strong demand for Umicore’s China V compliant
catalysts for heavy-duty diesel applications. The increase in adjusted
EBIT was even more pronounced, supported by cost savings resulting
from previously implemented footprint adjustments and operational
excellence initiatives in manufacturing and SG&A. Umicore’s light­
duty and heavy-duty catalyst production capacity expansions in
China were successfully commissioned and start of production is
expected in Q1 2022.
The light-duty vehicle segment represented 81% of Automotive
Catalysts revenues in 2021, of which 78% for gasoline technologies.
The Chinese ICE car market, which represented 28% of Umicore’s
global light-duty catalyst volumes, decreased by -5.4% over thefull year, reflecting a profound impact of the semiconductor supply
shortage in the second half of the year. While Umicore’s sales
volumes were not immune to this downward trend in the second
half, it outperformed the Chinese market for the full year bothin volumes and revenues (+13.2%), benefitting from its favorable
customer and platform exposure.

In Europe, which represented 30% of Umicore’s light-duty catalyst
volumes, Umicore substantially outperformed ICE car production,
which declined by -5.9% over the year, both in volumes and revenues(+16%). This performance was driven by further market share gains
in the gasoline segment and confirms Umicore’s strong position ingasoline catalyst technologies.
Umicore also outperformed both the North American and SouthAmerican car markets, which combined represent 25% of Umicore’slight-duty catalyst volumes, reflecting a favorable platform mix inboth regions.
In Asia, Umicore benefited in particular from the ramp-up of new
platforms in India, Japan and Korea and outperformed the car market
both in volumes and revenues.
The heavy-duty diesel segment represented 19% of the business
unit’s revenues in 2021.
Umicore’s heavy-duty diesel catalyst activity has been growing
steadily in the past years and the business unit established a strong
position, particularly in the Chinese and European heavy-duty diesel
markets with each region representing respectively 58% and 30% of
Umicore’s global heavy-duty sales volumes. In Europe, Umicore’s
revenues (+31.9%) strongly outperformed the market (+15.2%),
reflecting the ramp-up of new platforms. In China, Umicore benefitedin particular from strong demand for its China V catalyst technologies
in the first half, ahead of the nationwide implementation of China VI
emission norms. Umicore’s revenues (+33.6%) therefore significantly
outperformed the Chinese HDD market (-17%).

Umicore Integrated Annual Report 2021

25

The supply chain constraints caused by semiconductor shortage also
affected the heavy-duty diesel market in the second half of theyear, in particular in Europe. In China, its impact was less material
as heavy-duty diesel production in the region declined significantly
after the strong China V buying in the first half.
Revenues for Precious Metals Chemistry were well up year on year
driven by peak demand levels for homogenous catalysts from thehigh-end pharmaceutical and fine chemicals industries as a resultof strong post-COVID-19 recovery. Following the severe downturn inthe automotive industry in 2020, demand for inorganic chemicals
also benefited from a strong recovery at the start of the year while
the impact of the global semiconductor shortage on car production
dampened second half volumes.
Revenues for Fuel Cells & Stationary Catalysts were also strongly
up compared to 2020, driven by high growth in the fuel cell catalyst
business, while revenues in stationary catalysts remained stable.
Volumes in 2021 for proton-exchange-membrane (PEM) fuel cell
catalysts used in hydrogen powered transportation almost doubled
compared to 2020, positioning Umicore now at 40% global market
share in the mobility segment. This is a result of strong demand
from both existing customers in Korea and China and market sharegains in China, where Umicore contracted several new customers
throughout the year. This positive development fuels a growing
contribution of the Fuel Cell Catalyst segment to the business group’s
earnings. In stationary catalysts, demand from the power, refineryand chemicals end-markets is project-driven in nature and felt in 2021
the repercussions of project postponements in the COVID-19 context.
The last months of the year showed early signs of recovery with orderbook levels gradually increasing.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

26

Catalysis key figures
2017

2018

2019

2020

2021

Total turnover

3,091

3,311

4,539

5,917

8,155

Total revenues (excluding metal)

1,253

1,360

1,460

1,364

1,687

Adjusted EBITDA

224

237

264

234

402

Adjusted EBIT

165

168

185

154

326

0.4

0

0

0

0

Total EBIT

161

162

185

96

308

Adjusted EBIT margin

13.2

12.4

12.7

11.3

19.3

R&D expenditure

120

135

147

139

142

Capital expenditure

45

79

104

64

70

Capital employed, end of period

1,150

1,265

1,537

1,727

1,551

Capital employed, average

1,014

1,200

1,358

1,596

1,743

Return on Capital Employed (ROCE) (in %)

16.3

14

13.6

9.6

18.7

Workforce, end of period (fully consolidated)

2,952

3,070

3,190

3,073

3,007

of which associates

Workforce, end of period (associates)

-

-

-

-

-

Umicore Integrated Annual Report 2021

2019

2020

2021

2017

2018

2019

132

2019

252

2021

2017

2018

2020

2019

2020

E&ST ADJUSTED EBIT

E&ST RETURN ON CAPITAL EMPLOYED (ROCE)

Millions of Euros

%

2017

2018

2019

9.1

139
2020

3.4

2021

2017

2018

Revenues in Energy & Surface Technologies
amounted to € 1,174 million in 2021, up
12% compared to the previous year, withall business units contributing to that growth.

2019

2020

In Rechargeable Battery Materials, sales volumes of cathodematerials for EVs were well up, particularly in the first half of theyear, with high demand for Umicore’s NMC cathode materials for
the European EV market. Revenues in Cobalt & Specialty Materials
and Metals Deposition Solutions increased substantially, boosted
by a sharp post-COVID-19 recovery in demand in key end-markets
as well as a supportive price environment. Revenues in Electro­
Optic Materials benefited from a recovery in demand and newcustomer wins.
Adjusted EBIT and adjusted EBITDA in Energy & Surface
Technologies were up 85% and 41% respectively, reaching€ 139 million and € 262 million respectively. This significant increasein earnings was primarily driven by an extraordinary contribution
from the Cobalt & Specialty Materials business unit.

2021

Revenues in Rechargeable Battery Materials were up year on
year reflecting primarily higher sales volumes of EV NMC cathodematerials. This increase was driven by strong demand from theEuropean market, particularly in the first half of the year, whereas
in China, Umicore’s NMC volumes reflected an unfavorable customer
and platform mix. Shipments of NMC cathode materials used inenergy storage benefited from a pick-up in demand in Korea, whilesales volumes of high energy LCO cathode materials used in portableelectronics were below the level of previous year.

6.3

Despite the adverse impact of the semiconductor supply shortageon the automotive industry, global sales of EVs in 2021 more thandoubled versus 2020, while demand for EV NMC materials increased
74% year on year. Growth of Umicore’s sales volumes did, however,not match the global growth in NMC battery materials. After astrong first half, growth of Umicore’s sales volumes slowed downin the second half, affected by production schedule adjustments of

17.5

75

141

183

257

14.4

2021

348

2020

225

198
2018

316

Millions of Euros

262

Millions of Euros

271

E&ST CAPITAL EXPENDITURE

323

E&ST ADJUSTED EBITDA

2017

27

46

39

58

1,174

30
2018

219

2017

1,045

Millions of Euros

1,225

Millions of Euros

1,289

E&ST R&D EXPENDITURE

894

E&ST REVENUES (EXCLUDING METAL)

64

Umicore Strategy Performance Leadership Statements About Glossary Backcover2021

Umicore Strategy Performance Leadership Statements About Glossary Backcoverqualified platforms and an unfavorable customer and platform mix
in China.
Over the course of 2021, Umicore successfully entered into advanced
customer qualifications for new high-nickel EV platforms in Europe
and China with different battery manufacturers and car OEMs. It
is currently expected that upon successful qualifications, the firstsizable portion of these platforms will start commercial production in
the course of the second half of 2023.
EV sales in Europe increased substantially compared to the previous
year, supported by stringent CO2 targets and subsidy schemes inmost European countries. Umicore’s sales of NMC cathode material
grew in line with the market demand for battery materials, which
was up by 48%, reflecting its strong position in the region.
Sales of EVs in China recorded significant growth in 2021. While
the semiconductor supply constraints weighed on overall vehicle
production, car manufacturers in the region prioritized EV production
where possible to meet the Chinese New Energy Vehicle (NEV) credit
targets. The growth in China was primarily driven by a substantial
increase in sales of short-range LFP-based vehicles, while demandfor NMC battery materials increased to a much more modest extent.
Umicore’s volume growth did not match demand growth due to an
unfavorable platform and customer mix. As a result, production in
Umicore’s Chinese plant remained below capacity.

Revenues for Cobalt & Specialty Materials were well up comparedto the previous year, reflecting a sharp recovery of customer demandin key end markets, after the particularly severe impact of COVID-19
on its 2020 activity levels. Earnings further benefited from thecontext of increasing cobalt and nickel prices.
Revenues from the cobalt and nickel chemicals and related
distribution activities increased substantially driven by significantly
higher volumes at favorable conditions. Order levels for cobalt andnickel chemicals were well up in the first half of 2021, reflecting
a sharp post-COVID-19 recovery in demand and related customer
restocking behavior. Demand remained at an exceptionally high levelin the second half of the year, with increasing cobalt and nickel prices
triggering additional inventory build-up.
Revenues from the tool materials activity were also well up driven
by a recovery in demand from the construction sector resulting inhigh order levels for alloyed powders. Revenues from carboxylates
increased compared to an already robust 2020, reflecting solid
demand from the coating and paint industries as well as higher
order levels for naphthenic acid.
Revenues for Metal Deposition Solutions were well up comparedto the previous year, driven by higher revenues in both theelectroplating and thin film product activities. Order levels of
decorative applications for the jewelry sector and platinizedUmicore Integrated Annual Report 2021

28

applications for industrial use benefited from customer restocking
after the COVID-19-related slowdown in demand in 2020. Revenues
from base metal finishing applications were also higher driven by the
successful launch of a new connector application which allowed thebusiness unit to further extend its customer portfolio. Finally, sales in
micro-electronics and optics were also up, benefiting from a strong
recovery in demand for electronics in the semiconductor industry.
Revenues for Electro-Optic Materials were up year on year.
The business unit saw a clear recovery in demand for highpurity chemicals used in optical fibers with the pick-up of 5G
projects worldwide. Volume growth in germanium substrates
also accelerated, mainly in the second half of the year, driven
by strong demand from the space industry for both traditional
geo-satellites and low earth orbit constellations. Through newcustomers wins, Umicore continued to expand its germanium
recycling solutions. Moreover within infrared solutions, new businesswins in Europe and North America in the security and surveillance
segment compensated for the normalization of demand in 2021 forinfrared cameras, which recorded a COVID-19 related spike in theprevious year.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

29

Energy & Surface Technologies key figures
Total turnover

2017

2018

2019

2020

2021

2,392

3,650

2,938

2,811

3,534

Total revenues (excluding metal)

894

1,289

1,225

1,045

1,174

Adjusted EBITDA

198

323

271

186

262

Adjusted EBIT

141

257

183

75

139

10.5

0.9

5

5

8

Total EBIT

110

251

154

(36.2)

141

Adjusted EBIT margin

11.2

of which associates

14.6

19.8

14.5

6.7

R&D expenditure

30

39

46

58

64

Capital expenditure

225

316

348

252

219

Capital employed, end of period

1,206

1,769

2,324

2,133

2,275

Capital employed, average

978

1,469

2,014

2,209

2,198

Return on Capital Employed (ROCE) (in %)

14.4

17.5

9.1

3.4

6.3

Workforce, end of period (fully consolidated)

2,716

3,447

3,997

3,761

3,836

917

782

751

727

792

Workforce, end of period (associates)

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

RECYCLING R&D EXPENDITURE

Millions of Euros

Millions of Euros

2020

13
10

1,108
2021

2017

2018

2019

Millions of Euros

2021

189

195

250

425

68

82

Millions of Euros

79

RECYCLING CAPITAL EXPENDITURE

640

RECYCLING ADJUSTED EBITDA

2020

83

2019

72

681

2018

2017

2018

2019

2020

2021

RECYCLING ADJUSTED EBIT

2017

2018

2019

2020

2021

RECYCLING RETURN ON CAPITAL EMPLOYED (ROCE)

Millions of Euros

2018

2019

362

188

135

128

573

165.9

2017

2020

2021

The Recycling business group set another
all-time record performance in 2021,
significantly above the previous record result
achieved in 2020.

8

626

2017

836

650

15

19

RECYCLING REVENUES (EXCLUDING METAL)

30

72
25.8

27.9

39.3

2017

2018

2019

2020

2021

Revenues reached € 1,108 million and adjusted EBIT amounted to€ 573 million, representing an increase of 33% and 58% respectively
compared to 2020. Adjusted EBITDA amounted to € 640 million,
representing an increase of 51%. This exceptional performance wasdriven by a continued strong operational performance and highactivity levels in the various business units, a strong contribution
from the trading activities and an exceptionally strong precious
metals price environment with peaking PGM prices in the first half.
The Precious Metals Refining business unit took full advantage ofthis exceptional metal price environment by leveraging its uniquerecycling technology to optimize its intake of complex PGM-rich
input materials.
Revenues and earnings for Precious Metals Refining increased
significantly compared to the previous year reflecting an exceptional
precious metals price environment and in particular for PGMs in thefirst half of the year, as well as an excellent supply environmentand robust operations with high processed volumes. The business
unit took full benefit from the extraordinary market environment
by actively leveraging its unique recycling technology to maximize
intake of highly complex PGM materials, which resulted in an
absolute record year in terms of revenues and earnings.
Supply of industrial by-products and end-of-life materials remained
strong and Umicore managed to maintain total processed volumes inline with the high levels of 2020, despite the challenges induced by
COVID-19-induced quarantine rules.
Revenues for Jewelry & Industrial Metals were well up comparedto the previous year, driven by a strong performance acrossproduct lines. Revenues for platinum engineered materials increased
substantially reflecting a recovery in demand for high-quality
and high-grade glass applications as well as market share gains

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcoverin performance catalysts following a successful expansion of its
customer portfolio. Demand for precious metal-based investment
products remained high, in particular for silver coins and gold bars
which are seen as safe haven investments in a context of theeconomic and geopolitical uncertainty. Sales volumes of jewelry
products also increased, driven by a strong recovery in demand fromthe luxury sector following the pandemic-related slowdown in 2020.
The performance of the business unit was further supported by astrong contribution of the refining activities which benefited from thefavorable precious metal price environment.

31

in 2020. This outstanding performance was supported by continued
strong demand for gold and silver from the industry and investment
end-markets as well as very favorable trading conditions as a resultof the high precious metals price volatility.

The earnings contribution from Precious Metals Management
remained broadly in line with the exceptionally strong performance

Recycling key figures
Total turnover

2017

2018

2019

2020

2021

7,327

7,625

11,32013,904

15,609Total revenues (excluding metal)

650

626

681

836

1108

Adjusted EBITDA

189

195

250

425

640

Adjusted EBIT

128

135

188

362

573

Total EBIT

121

126

190

311

529

Adjusted EBIT margin

19.7

21.5

27.6

43.3

51.7

R&D expenditure

19

15

8

10

13

Capital expenditure

79

68

82

72

83

Capital employed, end of period

474

546

405

447

461

Capital employed, average

495

483

479

502

345

Return on Capital Employed (ROCE) (in %)

25.8

27.9

39.3

72

165.9

Workforce, end of period (fully consolidated)

3,092

2,832

2,849

2,769

2,867

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverCorporate & Financial review
In 2021, corporate costs increased, partly offset by a higher
contribution from associates. The increase in corporate costs results
amongst others from higher R&D and innovation initiatives linked to
Umicore’s mid- to long-term technology roadmap and additional
digitalization initiatives with related information system costs.
Corporate costs are expected to continue to increase above inflationin 2022 as Umicore is committed to its longer-term innovationand digitalization and is preparing its systems and organization toaccommodate for future expansion.

Financial result and taxation
Adjusted net financial charges totaled € 100 million, comparedto € 104 million in the same period last year with lower foreignexchange related costs more than offsetting somewhat higher net
interest charges. The latter takes into account the issuance of aconvertible bond in June 2020 which in 2021 carried a full year ofinterest. When excluding these non-cash interest charges on theconvertible bond, cash net interest charges for the Group decreased.
The adjusted tax charge for the period amounted to € 196 million,
up compared to € 103 million last year as a result of the substantial
year-on-year increase in taxable profit combined with a slightly lower
adjusted effective group tax rate (23.1% versus 24.2% in the same
period last year). Taking into account the tax effects on adjustments,
the net tax charge for the Group amounted to € 179 million. The total
tax paid in cash over the period amounted to € 175 million and was
also well up from € 79 million last year.

Cashflows & Financial Debt
Cashflow generated from operations including changes in net
working capital more than doubled to a record level of€ 1,405 million, compared to € 603 million last year. After
deducting € 416 million of capital expenditures and capitalized
development expenses, the resulting free cash flow from operations
was € 989 million, compared to € 167 million in the same period
last year.
Adjusted EBITDA was € 1,251 million, up 56 % compared to€ 804 million generated in 2020. This corresponds to a record
adjusted EBITDA margin of 31.0 % for the Group, substantially up
versus 24.6 % in the same period last year, driven by higher margins
across Business Groups, particularly in Recycling and Catalysis. Some
60 % of adjusted EBITDA was generated in the first half, reflecting inparticular the lower PGM prices and global car sales in the second half
versus the first half.
Net working capital for the Group decreased by € 167 million since
the end of 2020. This is a further reduction of € 137 million compared
to end of June 2021 which benefited from some temporary cut-off
effects. Working capital came down in all Business Groups, but mostso in Catalysis where it reflects lower precious metal prices and softer
volumes in the second half. At current metal prices, working capitalin 2022 is expected to increase from the levels of end of 2021.
Dividend payments over the period amounted to € 181 million while
the net cash outflow related to the exercise of stock options and thepurchase of treasury shares to cover stock option plans and share
grants amounted to € 22 million. The acquisition of the remaining
8.8 % minority shares in the listed subsidiary Allgemeine Gold- undSilberscheideanstalt AG and its subsequent delisting resulted in acash out of € 54 million in the second half.

32

The 2021 record free cash flow drove a reduction in net financial
debt from € 1,414 million at the end of 2020 to € 960 million at
31 December 2021, corresponding to 0.77 LTM adjusted EBITDA. Equityof the Group was € 3,167 million, corresponding to a net gearing ratio(net debt / net debt + equity) of 23.3%.

Adjustments
Adjustments had a negative impact of - € 75 million on EBIT ofwhich - € 39 million was already accounted for in the first half.
Environmental-related provisions took up € 58 million of thistotal with additional provisions for the creation of a green zone
neighboring the Hoboken plant accounting for the bulk. This reflects
the success of the voluntary offer to purchase neighboring houses.
The creation of the green zone is a key building block of the site’s plan
to further reduce the impact on its neighbors. Taking into accountthe use of the provision over the period, the total provision for thecreation of the green zone at December 31 amounted to € 44 million.
EBIT adjustments also include € 34 million of restructuring charges
of which € 23 million have been accounted for in the second
half and are mainly related to a decision to stop a development
program in Precious Metals Chemistry linked to the semiconductor
industry. Impairment charges took up € 18 million of the total EBIT
adjustments and were close to entirely accounted for in the firsthalf and were mostly linked to the closure of Automotive Catalysts’
heavy-duty diesel operations in Frederikssund, Denmark as well as
the impairment of certain related IP.
A positive EBIT adjustment of € 40 million was recognized related toa tax credit in Brazil resulting from a landmark ruling by the Brazilian
Supreme Court in May 2021 covering multiple years. Including
positive adjustments to financial and tax items of € 9 million and€ 17 million respectively, the total adjustments to net group earnings
over the period corresponded to - € 49 million.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

The contribution from Element Six Abrasives – a JV in which
Umicore has a 40% stake - to Umicore’s adjusted EBIT was strongly
up compared to previous year’s COVID-19-hit net earnings. This
reflects the combination of substantially higher revenues with costsavings and efficiency gains across activities. Sales of carbide-basedmaterials exceeded the already significant order levels recorded in2020 driven by continued solid demand from the mining, agriculturaland road paving end-markets. Revenues from oil & gas drilling
equipment were also well up reflecting the gradual recovery of
the global drilling industry after its abrupt standstill in 2020 andthe related rebuilding of stocks by customers, while precision
tooling products benefited from a recovery in demand from theautomotive industry.

HedgingUmicore entered into forward contracts to cover part of its expectedstructural price exposure to certain precious metals for 2022, 2023
and 2024. For 2022, based on the respective currently expected
exposures, the following lock-ins have been secured: close to twothirds for palladium, more than half for gold, somewhat less than half
for silver and close to one third for platinum and rhodium. For 2023,
the expected lock-in ratios are: close to a third for gold, silver andpalladium and a minor portion for platinum and rhodium. For 2024,
only a minor portion was locked-in for the expected gold, silver andpalladium exposures.
Next to strategic metal hedges, the Group typically manages a
portion of its forward energy price risks by entering into energy
hedges. Currently, Umicore has hedges in place that cover a minority
portion of its expected European electricity, natural gas and fuelneeds for 2022 and following years. These hedges particularly cover
future energy needs in Belgium, Finland and Poland. While thesecontracts are expected to mitigate a portion of the energy priceinflation effect on next year’s earnings, Umicore remains largely
exposed to energy market price fluctuations. Hence it expects, basedon the current market price outlook, a material energy cost headwind
effect in 2022, particularly for its Belgian operations.

Umicore Integrated Annual Report 2021

33

Umicore Integrated Annual Report 2021

Operations
Link to strategic topics
Clean Mobility & Recycling
Net zero GHG emissions
Zero Harm

Link to key risks & opportunities
Climate & environment, Information security & dataprotection, Market, Sustainable and ethical supply, Talentattraction & retention

Link to Sustainable Development Goals

34

Umicore Strategy Performance Leadership Statements About Glossary Backcover€ 389m2021 CAPITAL EXPENDITURE

22.2%
RETURN ON CAPITAL EMPLOYEDCAPITAL EXPENDITURE

553
2019

389

2018

403

2017

478

365

Millions of Euros

2020

2021

Umicore Integrated Annual Report 2021

35

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Umicore believes in proximity to ourcustomers and in working closely with ourcustomers’ teams as a true industrial partner.
As a local partner, we can reduce emissions from the supply chain
while offering the best possible tailor-made products and services.
Proximity to our customers also allows us to optimize continuity ofoperations. Our decentralized approach facilitates local operations, asbusiness units and sites have operational flexibility and can respondquickly to the dynamics in local markets, both in the upstream supply
chain and in the downstream needs expressed by customers.
Umicore is a global company creating products and services for abroad range of customers located in 101 countries and supplied
from a diverse supplier base in 87 countries. To cater to its
international customer base, Umicore is present in growing andestablished markets in Asia, Europe, North America, South Africa andSouth America.
With headquarters in Brussels, Belgium, we work from 46 production
sites, 15 R&D sites and 33 other sites, including sales and marketing
offices. Many sites accommodate a combination of business units,
corporate or other activities.
One of our newest multiple activity sites is theAmericana site
in Brazil, which we see as a blueprint for future industrial sites.
Ecological design means the site primarily uses renewable energy,
while optimizing energy and resource utilization. Americana wasalso purpose-built with open spaces to stimulate dialog among thevarious activities present on the site.

Catalysis
Umicore’s Catalysis business group contains our Automotive
Catalysts, Fuel Cells & Stationary Catalysts and Precious Metals
Chemistry business units. Their activities focus on the development
and production of catalyst formulations and systems used to abate
harmful emissions from combustion engines, for use in fuel cells andchemical and life science applications. These catalysts use mainly
Platinum Group Metal (PGM) chemistries, in which Umicore has over
50 years of experience.
Umicore Automotive Catalysts is one of the world's leading
producers of catalysts used in automotive emission systems forlight-duty and heavy-duty vehicles. Its catalysts are used in a wide
range of powertrains, including gasoline and diesel engines, naturalgas, and alternative fuels, and are increasingly important in engines
supporting mild and full hybrid vehicles. The business unit develops
and manufactures three-way catalysts (TWC) and particulate filters(cGPF) for gasoline engines as well as diesel oxidation catalysts(DOC), particulate filters (DPF), NOx (Nitrogen oxides) and SCR(selective catalytic reduction) systems for diesel engines. In addition,
it produces catalysts for heavy duty diesel (HDD) vehicles such as
buses and trucks and for motorcycle or small engine applications.
Umicore Automotive Catalysts’ worldwide operations deliverproducts to automobile manufacturers in Asia (with sales offices
in India, Thailand, Japan and China), Europe (offices in Denmark,Germany, Luxembourg and Italy) and North and South America (USAand Brazil). Activities are driven by the worldwide efforts towards
stricter emission standards for all type of combustion enginesand hybrids.
Through our Fuel Cells & Stationary Catalysts business unit,
Umicore supports future growth in both Proton Exchange Membrane(PEM) fuel cells and stationary catalysis, targeting a broad range
of industries including manufacturing, hydrogen production, power
and propulsion and the automotive industry. It aims to support its
customers in developing clean engines and reaching zero emission
mobility and power supply. The business unit benefits from Umicore’s
established worldwide presence in both business areas and in

Umicore Integrated Annual Report 2021

36

2021 added a strong footprint in China, locating its headquarters inShanghai. Fuel cell drivetrain technology is currently benefiting froma first uptake as an environmentally friendly alternative to internal
combustion engines. In 2019, the business unit commissioned a massfuel cell catalyst production plant in Korea to meet the growing
demand of its customers.
Umicore Precious Metals Chemistry develops and manufactures
metal-based catalysts, active pharmaceutical ingredients (APIs) andchemical vapor deposition (CVD) precursors. Its expertise includes theconversion of metals into inorganic and organometallic chemicals,
APIs and homogeneous catalysts as well as the handling andmanufacturing of highly toxic or sensitive materials. Its key end­
markets are automotive, chemicals, electronics and pharmaceuticals.
In 2021, the vast majority of the energy supply for ourcatalyst production in Europe (Karlskoga, Bad Säckingen), SouthAmerica (Americana) and North America (Burlington) was fromrenewable energy sources, helping our customers meet theirsustainability objectives.

Energy & Surface Technologies
Umicore’s Energy & Surface Technologies (E&ST) business groupcontains our Cobalt & Specialty Materials, Rechargeable Battery
Materials, Metal Deposition Solutions and Electro-Optic Materials
business units. The business group aims to power the future.
Our innovative materials enable the transition to electromobility
and are also used in applications including portable electronics,
energy storage and power tools. One in five lithium-ion batteries
ever produced contains Umicore technology. We offer Cobalt &Specialty Materials as well as Rechargeable Battery Materials forrechargeable lithium-ion batteries and we supply products for metal­
based electroplating and PVD coating from our Metal Deposition
Solutions business unit and material solutions for the space, optics
and electronics sectors from our Electro-Optic Materials business unit.
Our operations for E&ST are mainly in Asia and Europe and we sell our
products to customers worldwide. The business group’s products arelargely based on cobalt, nickel and germanium.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Umicore Rechargeable Battery Materials is a leading supplier ofactive cathode materials for lithium-ion batteries. These batteries
are the main battery technology for the new generation of hybrid
and full electric vehicles and are used in a large portion of today’s
portable electronic equipment. Over recent years Umicore has been
expanding capacity for its cathode materials to cater for growing
customer demand, in particular from the electric vehicle segment.
Today Umicore is supplying its customers from its sites in China
and Korea and soon we will start production from our greenfield
plant in Nysa, Poland, the first industrial scale cathode materials
plant in Europe, making Umicore the only cathode player to produce
industrial cathode materials on two continents and to supply cathodematerials to global customers with identical quality and performancefrom different plants across different regions.
Umicore is currently serving the European EV market out of its
Korean plant awaiting the start of commercial production at theplant in Poland. The new plant was successfully commissioned in
2021 and the qualification of its flexible production lines, with highand mid-nickel capabilities, is ongoing with production expected tostart mid-2022. Based on the growing demand from customers in
Europe, Umicore is further expanding the Nysa plant with additional
production lines, which are set to come on stream by the end of2023, as previously announced. On finalization of this expansion,
the Nysa plant will have a total production capacity of 20 GWh. The
Nysa site can accommodate a potential capacity of more than 200
GWh, and we currently plan around 40 GWh at the end of 2024 as aninterim step.
The manufacturing process in Nysa reflects the latest developmentsin Umicore’s proprietary cathode materials production system andprocess. This Gigafactory will be industry-leading in terms of purity,
quality and consistency, and represents a very important asset for
Umicore. Nysa will be supplied with 100% green electricity from thestart of production, adding a sustainability dimension in favor of our
product offer.
The business unit Cobalt & Specialty Materials is a worldwide
leader in the recycling and refining of nickel and the transformationand marketing of cobalt and nickel specialty chemicals. Its broad

expertise covers a multitude of applications in both chemical andpowder metallurgy. The unit covers all steps of the value chain, fromsourcing to distribution, with production units and sales offices on
all continents.
Umicore’s Metal Deposition Solutions business unit is one of
the world's leading suppliers of products for precious metal-based
coating of surfaces in the nano and micrometer range. The unit
masters the two highest-quality coating processes: electroplating
and PVD coating which offer customers tailor-made coatingprocesses for their specific needs. Its coating solutions are usedby manufacturers in the electronics, semi-conductor, automotive,
optics and jewelry industries.
The Electro-Optic Materials business unit supplies germanium­
based material solutions to customers around the world. Its mainmarkets are thermal imaging and opto-electronic applications, forwhich it supplies germanium wafers, infrared lenses and optics, andgermanium-based chemicals.

Recycling
In our Recycling business group we give new life to used metals.
The business group recovers a large number of precious and othermetals from a wide range of waste streams and industrial residues.
Its operations also extend to the production of jewelry materials(including recycling services). This segment also offers products
for various applications including chemical, electric, electronic,
automotive and special glass applications. It consists of threebusiness units, with at the center its flagship Precious Metals Refining
plant in Hoboken, Belgium, unique in its kind.
Umicore Precious Metals Refining operates as one of the world's
largest precious metals recycling facilities and is the world market
leader in recycling complex waste streams containing preciousand other non-ferrous metals, serving customers worldwide. In
2021, the Hoboken plant benefited from previously implemented
innovations and debottlenecking investments in its PGM refineryand achieved record earnings and revenues. The recent innovations
allowed Umicore to maximize input of highly complex PGM materials,

Umicore Integrated Annual Report 2021

37

such as spent automotive and industrial catalysts. The regular
maintenance shutdown in the second half of the year was completed
as scheduled and operations restarted smoothly. As described intitle story, the production plant in Hoboken is continuously
investing to minimize its environmental impact.
Umicore Precious Metals Management is a global leader for the
supply and handling of all precious metals. The business unit acts
as a link between the recycling activities and producers in need ofprecious metals (internal as well as external). We guarantee supply
continuity through sustainable sourcing of raw materials.
The Jewelry & Industrial Metals business unit supplies precious
metal based products to jewelers and precious metals processors
as well as semi-finished products and alloys for industrial soldering
products and tradable precious metals. It also offers its precious
metal recycling services to its clients for their jewelry and production
scrap. In addition to the highly sophisticated precious metals
recycling facility in Hoboken, Belgium, we have precious metals
recycling operations in Australia, Austria, the Netherlands, Brazil,
France, Canada, USA, Germany, Japan, Thailand and the UK. Our
products and services are marketed in all these regions.
In 2021 Umicore was proud to establish its newest business unit,
Battery Recycling Solutions (BRS). Battery recycling is an essential
part of our contribution to the sustainable electrification of theautomotive industry as it enables us to close the loop in battery
manufacturing. More details of the creation of this business unit canbe found in the section Innovation. Please also see see theACC
press release.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Investments & Divestments
In 2021, capital expenditure totaled € 389 million, compared with
€ 403 million the previous year, with € 166 million spent in thefirst half.
Energy & Surface Technologies accounted for close to 60 % of Group
capital expenditure, driven by European expansion investments for
Rechargeable Battery Materials. This resulted in a temporary slow­
down in the capital expenditure of Energy & Surface Technologies
compared to 2020 and is expected to result in some spill-over ofcapital expenditure into 2022.
In Catalysis and Recycling, capital expenditure only slightly increased
compared to the low spending levels of 2020. In Catalysis,
Automotive Catalysts continued to focus on investments to optimize
production footprint and targeted capacity expansions. In Recycling,
the increase in capital expenditure was earmarked for environmental
and safety-related investments in Precious Metals Refining.
Capitalized development expenses amounted to € 28 million,
slightly down compared with 2020. Umicore’s accelerated growthinvestments in Rechargeable Battery Materials - including the spill­over effect mentioned above - are expected to result in higher Group
capital expenditure in 2022 compared with the previous year.

Associate & joint venture companies
Umicore has investments in various business activities over which
it does not exercise full management control. Associate companies
are those where Umicore has significant influence over financial
and operating policies, but no control. Typically, this is evidenced byownership 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, gain accessto specific markets, or share investments.

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

Umicore and Volkswagen AG to create
European EV battery materials Joint Venture
Umicore and Volkswagen AG announced in December 2021 theirintention to create a joint venture for the production of precursor
and cathode materials in Europe to supply Volkswagen AG’s European
battery cell production. It is anticipated that this partnership, the firstof its kind in Europe, will start with an initial annual production of
20 GWh in 2025 for supply to Volkswagen AG’s plant in Salzgitter,
Germany, with the ambition to grow to an annual production capacityof up to 160 GWh by the end of the decade.
The partnership will provide Umicore with secured access to asignificant part of the European demand for EV cathode materials
while providing Volkswagen AG access to Umicore’s advanced
precursor and cathode materials, proven production capabilities andupstream expertise. The partnership is expected to unlock significant
economies of scale and will allow investment requirements to beshared between the partners while protecting critical IP and know­
how for Umicore.

38

In the context of the joint venture, Umicore and Volkswagen AG
will also collaborate on the sustainable and responsible sourcingof raw materials, which is a strong area of expertise at Umicore.
At a later stage, both parties aim to include battery recycling andelements of refining in the scope of the JV. The planned JV is
subject to final agreements and customary conditions, including
regulatory approvals.
Volkswagen AG has chosen Umicore as a partner not only because
the two companies share the same sustainability ambitions, butalso because Volkswagen sees Umicore as a leading player in thisindustry, uniquely combining state-of-the-art product and process
technologies with a proven and well-established track record in massscaling at highest quality levels, and strong capabilities in the ethicalsupply of raw materials.
For more, please see theJV announcement.

Umicore and Volkswagen

Umicore Integrated Annual Report 2021

Innovation
Link to strategic topics
Clean Mobility & Recycling
Net zero GHG emissions

Link to key risks & opportunities
Climate & Environment, Market, Regulatory & legal context,
Sustainable & ethical supply, Talent attraction & retention,
Technology & substitution

Link to Sustainable Development Goals

39

Umicore Strategy Performance Leadership Statements About Glossary Backcover

15

Technology, innovation, research anddevelopment are at the heart of everything
we do, are core to our strategic andsustainability decisions and are a true
differentiator for Umicore. We consistently
invest in innovation to meet the growing
demand for innovative and sustainable clean
mobility materials and for state-of-the-art
recycling services to close the loop of
precious and other valuable metals.

R&D SITES€ 245m2021 R&D SPEND

Umicore is known for the breadth and depth of its internal expertiseand know-how, with leading international scientific and engineering
talent dedicated to developing the next generation of sustainableproducts and process technologies. Thanks to our team’s in-depth
knowledge of metallurgy and materials science, a significant part ofour technology is delivered using our own R&D findings.

R&D EXPENDITURE

2019

2020

245

2018

223

196

2017

211

175

Millions of Euros

2021

With fast-moving societal megatrends, including the accelerating
move to cleaner mobility and electromobility, as well as the need fora circular economy, we cannot find all the solutions by relying on ourinternal expertise alone. That is why Umicore is forging partnerships
and developing technologies in collaboration with leading industrial
or academic partners, through market intelligence, open innovationand investment in start-ups.
To push the boundaries of clean mobility and recycling, and tocontribute to a sustainability-driven world and the green economy,
Umicore’s innovation activity is embedded in the core of ourbusiness and our strategy - adding value across the organization andsupporting our long-term growth. Our Corporate R&D organization isa cornerstone of our technology development, connecting the R&D
departments in our business units and ensuring that all parts of thebusiness harness operational synergies for innovation and tap into
our deep R&D expertise. In this way, we ensure that innovation is
woven into the heart of the business and that our R&D insights are
inspired by the market and the needs of our customers.

Umicore Integrated Annual Report 2021

40This is particularly true for clean mobility and recycling, where global
megatrends and political and market demands are accelerating thepace of innovation. Umicore has an advanced position in this rapidly
developing area, setting new industry standards with advanced andsustainable product and process technologies.
For clean mobility, we are a leader in automotive catalysts foremission control and fuel cells and are already a long-standing
leader in cathode materials to power the EVs of today andtomorrow. For recycling, we are an undisputed champion in precious
metal recycling and a pioneer in the fast-growing sector of EV
battery recycling.
R&D expenditure in fully consolidated companies amounted to€ 245 million, 10% higher than the € 223 million last year. The
increase results from higher R&D costs related to new productand process technologies in Rechargeable Battery Materials andFuel Cell Catalysts, an increased effort in battery recycling, andadvanced technology development related to decarbonization andemission reduction programs to meet our ambitious sustainability
objectives. Umicore also increased its efforts in its mid- to long­term corporate technology development and open innovation
collaboration programs.
The R&D spend represented 6% of Umicore’s 2021 revenues andcapitalized development costs accounted for € 28 million of the total.

New Business Incubation (NBI)
To further strengthen our innovation capabilities in a way that
supports robust business growth for years to come, Umicore hascreated the New Business Incubation (NBI) unit. Formally establishedin 2020, NBI works in a startup-based environment that benefits
from the support and scale of Umicore’s global organization. At an
early stage, NBI identifies winning technologies with the potential
to become mature businesses over a horizon of 5 to 15 years. The
innovation pipeline is focused on sustainable product and process
technologies that enable continued long-term business growth andsecure our pioneering leadership in the areas of clean mobility
materials, recycling and green hydrogen.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

NBI manages all aspects of business development, exploring,
identifying and developing future business opportunities in adjacentand new markets. This allows Umicore to selectively expand in thesemarkets in line with its strategy and strengths.
New incubators are set up within NBI as standalone businesses
comparable to start-ups, where the technology is deployed, pilot
lines are built and commercial sales portfolios are developed.
Projects with the potential to reach industrial scale, combined witha strong business model, are transferred to an existing Umicore
business unit or could become a new business unit in their own right.
In 2021 the NBI activities included solid state and silicon anodebattery materials, battery recycling and exploration of opportunities
related to hydrogen generation and storage. In early 2022, thesebattery recycling activities became one of the first ventures of
NBI to graduate into a standalone business unit within Umicore,
designated Battery Recycling Solutions (see Battery Recycling for
more information).
NBI also houses key competencies that play a critical role in Umicore’s
innovation strategy. For example, NBI’s Open Innovation teamsupports projects in collaboration with universities and start-ups
worldwide. An example of a startup which Umicore co-created is
Re|Source, a blockchain solution to trace responsibly produced
cobalt from the mine to the electric car. The IP team is crucial for
generating and protecting high quality IP.
NBI has also put together the Strategic Insights and Analysis team.
This team contributes to better understanding of market dynamics
and industry roadmaps, using corporate forecasting methods andartificial intelligence to provide strategic input to our steeringcommittees and innovation boards. The Umicore Technical and Digital
Academy provides learning opportunities to our employees in areas
such as technology, digitalization and innovation as described in the
UTDA story.

1

Clean Mobility & Recycling Innovation
The transportation sector is a major contributor to global CO2
emissions, producing approximately 7.3 billion tonnes of CO2 in 20201.
Passenger cars are responsible for a large part of this pollution,accounting for 41% of global transportation emissions in 2020. As
such, the transition to zero-carbon mobility, with a combination ofelectric, hybrid and fuel cell vehicles, will play a key role in achieving
international climate targets.

41

standards in the world, and it is expected that China will implement
even tougher China 7 emission standards for passenger cars andheavy-duty diesel transportation as of 2027. Furthermore, fromJanuary 2027, it is also expected that automotive batteries will
have to declare quantities of recycled content, and by January 2030,
minimum levels of recycled content will be required, with higher
minima enforced from 2035.

Catalysis

Umicore has unique strength in this fast-growing sector, where
innovation is driven by the urgency of government climate targets,accelerating plans to phase out sales of fossil-fuel powered vehicles
and the consequently accelerating penetration of battery and fuelcell electric vehicles. As a materials technology company, we provide
a full offering to support this innovative roadmap towards evercleaner vehicles.

Umicore has a unique position in catalysis, supporting clean mobility
across all drive-train technologies, with a leading position ingasoline and fuel cell applications. Our continuous innovation in
catalyst particles and technologies helps our customers comply withincreasingly stringent emission regulations and meet targets toimprove air quality and reduce CO2 footprints.

We are a global leader in the supply of automotive catalysts to clean
the exhaust gases from internal combustion engines for light-duty
and heavy-duty vehicles and for all fuel types.

Internal combustion engine catalysts

We provide cathode materials for electric vehicles and the catalysts
that are used to power fuel cell-driven vehicles. Most importantly,
Umicore also has the capabilities to recycle all these materials anddrivetrain components when they reach the end of life, thereby
sustainably closing the loop. The scarce resources used in clean
mobility technologies create a large carbon footprint from primarysourcing. The ability to recycle and re-use battery and catalysis
materials is therefore crucial.
European regulation is setting ever stricter requirements and it isexpected that Euro 7 emissions standards will be implemented in
2025, mandating unprecedented levels of cleanliness for ICE vehicles.
Looking further ahead, we also anticipate more stringent emission
standards in the United States for passenger cars (LEV IV and Tier
4 criteria in 2026) as well as significantly more stringent emissions
standards for heavy-duty diesel (EPA and CARB in 2027). Current
China 6 emission norms are one of the most stringent emissions

https://www.statista.com/statistics/1185535/transport-carbon-dioxide-emissions-breakdown/

Legislation increasingly requires gasoline vehicles to be equippedwith particulate filters. Our work focuses on innovative and efficient
catalyst technologies, optimizing the distribution of the catalytic
material in the pores of the filter to enable an optimal balance of
backpressure, filtration efficiency and chemical reactivity.
An example of our innovation in this area during 2021 is a newcollaboration between Umicore and the truck manufacturer, Scania,
to develop clean engine technology for the transportation services
market. The sector faces increasingly stringent emission standards
for NOx (nitrogen oxides, a key component of smog) and particulates
for heavy-duty road engines. This requires state-of-the-art engine
technology and innovative catalytic emission control systems.
Together, Umicore and Scania have developed a next generation
Exhaust Aftertreatment System (EATS) using a twin Selective
Catalytic Reduction (Twin-SCR) approach that allows the EATS toremove NOx with very high efficiency at a significantly broader rangeof temperatures. The system uses the latest Vanadium SCR catalysts

Umicore Strategy Performance Leadership Statements About Glossary Backcover(V-SCR), capable of meeting the performance and durability targets
required by current and expected future emissions legislations,as well as complying with applicable regulations globally. This
future-proof performance makes the newly developed engine andexhaust treatment system a truly global platform for Scania’s parent
company, Traton.

Fuel cell catalysts
Umicore’s Proton Exchange Membrane (PEM) Fuel Cell catalysts
are designed to provide the automotive industry and greenhydrogen production with high performance fuel cells. With 30
years’ experience of manufacturing fuel-cell catalysts, Umicore has
proven know-how in catalyst development, scale-up and industrial
scale production.

times and higher cycle life at a competitive cost, while always
meeting the strictest safety standards. Our technology roadmap
spans short-, mid- and long-term research horizons for lithium-ion
battery materials
High-nickel cathode chemistries are currently a strong focus ofattention, as nickel helps deliver higher energy density. Umicore
has successfully repositioned its offer to become a major player inhigh-nickel chemistries. This was a major factor in setting up theintended joint venture with Volkswagen for precursor and cathodematerial production capacities in Europe to supply Volkswagen’s
European battery cell production.
Silicone-based anodes can also boost the energy density in lithium­
ion batteries, thanks to their higher capacity. This is early stage
project within our NBI unit.

To complement the development of fuel-cell catalysts, in 2021,
Umicore set up a portfolio of projects to explore opportunities
in the generation and storage of hydrogen. One example is thedevelopment of PGM-based catalysts for liquid organic hydrogen
carrier (LOHC) applications in FCEVs and other mobile applications.
This technology has the potential to transform the way hydrogencan be stored and used to power FCEVs. LOHC technologies provide
an effective alternative to compressed hydrogen, as they allowhydrogen to be chemically bonded to a stable liquid organic carrier,aiming at making the storage and transportation of hydrogen safer,more practical and cost-efficient. As a result, LOHC technology may
help to overcome some of the existing logistics and infrastructure
challenges associated with the use of hydrogen as a fuel for clean
mobility. Umicore will conduct this research with support from Anglo
American’s PGM market development program and in cooperation
with Prof. Peter Wasserscheid at the University of Erlangen, co­founder of the company Hydrogenous LOHC Technologies.

Solid state batteries are another area of our innovation focus. Solid­
state batteries are expected to substantially increase the energy
density compared to commercially available lithium-ion batteries
today, thus alleviating the two largest concerns for passenger EV
adoption: cost and range anxiety. The safety profile of solid-statebatteries also exceeds that of traditional lithium-ion as a result of
its truly all-solid cell architecture, avoiding the use of liquid organic
electrolyte. Alongside several leading car manufacturers and cellmakers, Umicore has invested in Solid Power, a U.S. developer ofsolid-state battery technology, demonstrating our commitment tofurthering solid state battery technology together with partners.

Battery materials

Battery recycling

Umicore is a leading producer of cathode materials for lithium-ion
batteries used in electric vehicles and is committed to developing
materials that deliver higher energy density, faster charging

Umicore is the world’s leading recycler of complex waste streams
containing precious and other valuable metals. Our closed-loopbusiness model is a powerful strategic differentiator that has helped

Alongside its own research programs, Umicore promotes open
innovation and supports the development of promising technologies
for breakthrough battery materials. In 2021, Umicore’s dedicatedOpen Innovation team was involved in over 140 open innovation
collaborations focused on battery material development.

Umicore Integrated Annual Report 2021

42

us build a pioneering position in the recycling of rechargeable
batteries. Our battery recycling plant in Hoboken, Belgium, has anannual input capacity of 7,000 tons of lithium-ion batteries andbattery production scrap, the equivalent of 35,000 electrified vehicle(xEV) batteries.
As demand for electrified vehicles (xEVs) grows exponentiallyacross the world, our battery recycling expertise and long-standing
competences in hydro- and pyrometallurgy recycling processes place
Umicore in a unique position to meet the needs of automotive
manufacturers and the wider EV supply chain. To this end, we
have been investing to grow our battery recycling business andestablished ‘Battery Recycling Solutions’ (BRS) as a new business unit
in 2021, after two years of intensive business incubation in NBI.
The creation of a dedicated organization underlines our commitment
to make battery recycling and our closed loop offering an essential
part of our contribution to the sustainable electrification of theautomotive industry. After intensive research and piloting activities,
our latest generation and proprietary recycling technology is readyto come on stream. This process is a significant step-up in recycling
performance, with increased extraction efficiency of cobalt, nickel
and copper to reach over 95% yield for a wide variety of battery
chemistries. This includes the capability to recover most of thelithium in EV batteries, solving a key constraint in existing recycling
capacity. The recovered metals will be delivered in battery-grade
quality at the end of Umicore’s recycling process, allowing them to be
re-introduced in the production of new lithium-ion batteries.
With minimal waste and impact on the environment, this next­
generation recycling technology will be vital for the surge in EV
adoption, putting Umicore in a strong position to forge commercial
partnerships in the EV value chain. A recent customer to sign up with
BRS was Automotive Cells Company (ACC), using the technology for
its pilot plant in Nersac, France.

Umicore Integrated Annual Report 2021

Environment
Link to strategic topics
Clean Mobility & Recycling
Net Zero GHG emissions
Zero Harm

Link to key risks & opportunities
Climate & environment, Market, Regulatory & legal context,
Sustainable & ethical supply, Technology & substitution

Link to Sustainable Development Goals

43

Umicore Strategy Performance Leadership Statements About Glossary Backcover

54%
SECONDARY MATERIALSIN INPUT MIX-35%
DIFFUSE METALEMISSIONS VS
2020 BASELINE IN
HOBOKEN, BELGIUM

17%
RENEWABLE ENERGIESIN PURCHASEDELECTRICITY MIX

Umicore Integrated Annual Report 2021

44

Minimizing the impact of our operations
on climate and the environment are key
elements of our sustainability strategy.

As meaningful impact on climate change means mobilizing ourvalue chain, Umicore will work with suppliers to reduce scope 3 GHG
emissions and in the course of 2022 will define a target aligned withthe objectives of the Paris Agreement.

The Umicore Way and our mission of Materials for a Better Life are
the drivers behind our commitment to sustainability. As a materials
technology company, we aim to increase the efficient use of metals,
energy and other inputs in our operations to balance environmental
and economic factors and work to increase closed-loop relationships
with our customers. Our success is measured in our ability to makesustainability a competitive advantage.

In 2021, Umicore stated its support for theTaskforce on Climate
related Financial Disclosures (TCFD), joined theBelgian Alliancefor Climate Action (BACA) and formally committed to the
Science Based Targets initiative (SBTi) process for validation of ourdecarbonization targets.

The launch of Umicore’s Let’s Go For Zero strategy in June 2021
was an important milestone in our long sustainability journey. Let’s
Go for Zero builds on our long-standing leadership in clean mobility
materials and recycling and reaffirms our commitment to leverage
our technological know-how, scientific expertise and corporate reachto be an industry leader in sustainability.
Minimizing the environmental impact of our operations is an
important part of our Zero Harm ambition. Building on significant
achievements over the last five years, Umicore will continue efforts
to maximize the efficient use of resources, minimize emissions to
air and water and commits to reduce diffuse metal emissions by
25% by 2025 compared to 2020. In the course of 2022, Umicore will
also define a target for water use.
Because Climate change requires immediate and decisive action,
we defined our ambition for Net zero Greenhouse Gas (GHG)
emissions by 2035, with intermediate milestones of a 20%
reduction by 2025 and a 50% reduction by 2030 (vs. 2019 baseline).
Umicore will continue to improve energy and process efficiency
and switch to renewables as fast as possible.

For more on risks related to environmental impact, see the Climate &Environment risks section.

Primary
materials | 46
Secondarymaterials | 54

2017

2018

2019

2020

2021

1 Data from previous years is for indicative purposes only.

The ambition to address increasing global resource scarcity andachieve material efficiency is an important factor in our strategy.
Umicore is a world leader in the eco-efficient recycling and refiningof precious, special, secondary and base metals-bearing materials.
Our eco-efficient process entails maximizing the physical recyclingof materials while minimizing the associated environmental burden.
We recover and sell these metals and our closed-loop business model
maximizes re-use of materials.
In 2021, 54% of the materials were from secondary origin and
46% were of primary origin. Umicore revised the definitions ofprimary and secondary raw material in 2021. A comparison withprevious years is therefore not fully applicable (see environmental
statements ). In 2021, post-consumer raw materials represented
approximately 37% of total secondary raw materials for the Group.
As part of the annual third-party assurance of our Cobalt Framework,
the share of cobalt from recycled origin is already reviewed. The
share of cobalt from recycled origin was also reviewed as part of theassurance process and increased to 8%, up from 4% in 2020.
Over time, factors impacting secondary materials availability for
Umicore’s input mix could be the rapid growth in demand forclean-mobility materials, linked to society’s shift to decarbonization,
combined with long lead times between bringing material to themarket and having material available for recycling.

Umicore’s commitment to resource efficiency is at the heart of ourclosed loop business model. We maximize the use and reuse of thematerials in our flows. Similarly, we monitor and seek to minimize
the waste generated by our operations. In 2021, a more precise
application of internal definitions impacted all waste KPIs andmainly
the recycling percentage in hazardous waste. The corresponding datafor previous years could not be retroactively restated. Therefore,
a comparison of 2021 results with previous years is indicative, but
not precise.
In 2021, a total of 94,619 tonnes of waste was generated ofwhich 21,065 tonnesof non-hazardous waste and 73.554 tonnes ofhazardous waste. The recycling rate of non-hazardous waste was 71%
in 2021 and of hazardous waste 8%.

2017

2018

2019

2020

45

10,103

megaliters

6,208

tonnes

5,885

%

4,755

TOTAL WATER WITHDRAWAL1

94,619TOTAL WASTE1
99,434

INPUT MATERIALS MIX

68,317

Water

78,778Waste

72,804

Resource Efficiency

7,813

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

2021

1 The data from 2017-2020 is ‘water use’ with a slightly different definition, see
Environmental Statements

Umicore has tracked water withdrawal – until 2020 termed ‘wateruse’ – on Group level for many years. In 2021, we aspired to align with
GRI definitions and to track water discharge and thus report water
consumption as the balance between discharge and withdrawal.
During analysis of the data reported for 2021, notable uncertainties
were encountered in the water discharge figures reported at threeof our industrial sites. These uncertainties could not be resolved due
to data availability limitations and prevented us from presenting
water discharge and consumption data in this report. Efforts areunderway to improve the underlying data and arrive at audit-quality
calculations of the water discharge and water consumption at thesites, which is expected to yield a dataset that is well aligned with
GRI standards for 2022 and thereafter. This will form the basis of afuture water objective as part of Let’s Go for Zero.
For 2021, we present the total water withdrawal to allow a roughcomparison with the ‘water use’ reporting from previous years.
Total water withdrawal in 2021 was 10,103 megaliters and total
fresh water withdrawal was 9,764 megaliters. When discounting
the withdrawn produced water, the groundwater withdrawn for
remediation purposes and the cooling water withdrawn and returned
to surface water from the total withdrawal, the result for 2021 is 8,369
megaliters. This 2021 figure is a 7% increase from the 7,813 megalitersof ‘water use’ reported in 2020, linked to increased activity in our
Recycling and Energy & Surface Technology business groups.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Emissions
SOX & NOX EMISSIONS
Tonnes

661

657

320

304

531
280

389
239

372
240

SOx emissions
NOx emissions

2017 2018 2019 2020 2021

METAL EMISSIONS TO AIR & WATER1
Impact units

190,464
174,725
144,657
216,739
125,688
84,46388,044
69,37170,084
70,08452,492 69,371

to waterto air2017 2018 2019 2020 2021
1 A different set of impact factors was used for the data from 2017-2019, see
Environmental Statements

DIFFUSE METAL EMISSIONS - HOBOKEN SITE1% impact of the 2020 baseline

114,2

2019

100,0
2020

Umicore has been systematically tracking metals emissions to waterand air from point sources since 2011. Ambitious reduction targets
have been achieved since then, and we strive to continuously reducethe impact that our metals emissions have on the environment. We
focus on emissions that are relevant to the environment in termsof impact and that are affected by the metals present in Umicore’smaterial flow. We monitor and take steps to reduce the impact ofemissions on the environment – to air, water and on the soil.
Different metals each have different and specific potential toxicity
levels for the environment and human health. For this reason,
we focus on reducing the impact of our emissions by applying
an impact factor. In 2021, we reviewed the scientific basis behind
this approach and revised the impact factor of several metals. This
revision has been applied to 2021 reporting and to recalculate 2020
values for comparability.
The SOx emissions for the Group reduced by 4% from 389 tonnes in2020 to 372 tonnes in 2021. The NOx emissions remained at similarlevels, with 240 tonnes in 2021 compared to 239 tonnes in 2020.
Metal emissions to air in 2021 were 70,084 impact units, up by
1% from 69,371 in 2020. The corresponding loads of metals to air
also increased by 1% year-on year, from 984 kg in 2020 to 994 kg in
2021. Metal emissions to water in 2021 decreased 12% to 190,464
impact units, from 216,739 in 2020. This can be mainly attributed to adecrease in production activities at Cobalt and Specialty Materials at
our site in Olen (Belgium). The corresponding load of metals to water
for the Group increased by 28% year-on year, from 2,695 kg in 2020
to 3,440 kg in 2021. This means that the bulk of the increase in load
occurred for metals with a low environmental impact, and that wemanaged to further decrease the load of metals with a high impact
on the environment.

64,8
2021

1 Relative impact of diffuse emissions (Pb,As and Cd), averaged over 3 measuring posts and overfull year.

Building on robust operation of the wastewater treatment plantand stepwise improvement of air emissions abatement systems,
Umicore’s site in Olen (Belgium) reached record low outputs of metals
to water and air. Improvement to treatment at the milling step of
raw materials for the Nickel plant in Olen was one of the impactfulimprovements in 2021.

Umicore Integrated Annual Report 2021

46

As opposed to the ‘guided’ emissions described above, from apoint source such as a chimney, diffuse emissions originate
from a non-point source, such as from dust when handling raw
materials. Achieving our Group-wide target of a 25% reduction
from the 2020 baseline will mean defining targets for each site
identified as contributing to Umicore’s impact in terms of diffuse
metal emissions. While this screening is ongoing, in 2021, we arereporting our performance of diffuse metal emissions reduction
from our production site in Hoboken (Belgium) where this ambition
was translated into the operations at the end of 2020. As a result,compared to the site’s 2020 baseline, diffuse metal emissions at theend of 2021 were reduced by 35.2%. More on how the Hoboken site ishere.
managing its diffuse emissions performance can be read

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Umicore Integrated Annual Report 2021

47

EnergyENERGY CONSUMPTION (ABSOLUTE)

2017

2018

2019

8,308

7,591

7,476

6,532

7,458

Terajoules

2020

2021

ENERGY BY SOURCE%

RENEWABLE ENERGY IN PURCHASED ELECTRICITY

15%

17%

14%

%

2020

In 2021, 26 sites accounted for more than 95% of the Group’s
energy consumption with a total of 35 energy efficiency projects
implemented over the course of the year. This year, we are sharing
2 energy efficiency project outcomes from 2 different locations andbusiness units, both operating out of Korea:● In 2021, our Rechargeable Battery Material sites in Cheonan,
which together form an important part of our production ofcathode materials for rechargeable batteries, sought to minimize
energy loss from compressor air as part of their energy
efficiency projects. Leak points were identified using an ultrasonicscanner, and immediate actions could be taken to reduce air
loss, and subsequently, leakage points were eliminated during
regular maintenance activities. This project at the 2 Cheonansites saved approximately 723 MWh in the first 12 months
after implementation.

Direct energy |45
Indirect energy
| 55

2019

Umicore has a long history of prioritizing energy and process
efficiency across its operations. In the context of our Let’s Go for
Zero strategy, efficiency remains a priority to help us achieve ourambitions of net zero GHG emissions by 2035. Energy consumption
continues to be monitored and reported at all sites, including energy
efficiency projects. Several Umicore sites have implemented the ISO
50001 energy efficiency standard, and the 2 largest sites in Belgium
have been part of the energy efficiency covenant with the Flemish
government since 2004.

2021● Our Automotive Catalysts site in Songdo , which produces catalytic
converters for the automotive market in Asia, identified water
pumps, an integral element of their cooling water system, asa main energy consumer at the site. The site team discoveredthat there were significant pump control inefficiencies. A smarter
way of operating the pumps was developed and implemented,
which led to savings of almost 661 MWh in the first 12 months
after implementation.

Total energy consumption in 2021 was 8,308 TJ compared with 7,591
TJ in 2020, an increase of 9%. This increase in energy consumption
can be mainly attributed to an increase in activity in our Recycling andEnergy & Surface Technology business groups. In 2021, direct energy
consumption was 3,782 TJ, or 45% of the total energy consumption for
the Group, and indirect energy consumption for industrial sites andoffice buildings was 4,526 TJ, or 55% of the total energy consumption
for the Group.
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 and could report the result. Since
then, our ambition to reach net zero GHG by 2035 has increased
our focus on decarbonizing the energy we use. Decarbonizing
energy used to fuel our processes will require innovations in process
and technology.
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 inour purchased energy mix. In 2021, the share of renewable energies
for purchased electricity was 17%, up from 15% in 2020. For more on
our efforts to secure long-term renewable energy contracts, see
our PPA announcements.
In 2021, Umicore also completed additional on-site renewableelectricity installations, including solar installations at our sites in
Americana (Brazil), Jiangmen (China) and Brussels (Belgium).

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Greenhouse Gas Emissions
SCOPE 1 EMISSIONS

2017

2018

2019

2020

372,699

330,619

389,101

417,140

364,139

Tonnes CO2e

2021

SCOPE 2 EMISSIONS - MARKET BASED

2019

2020

473,738

401,9262018

402,795

2017

350,562

269,565

Tonnes CO2e

2021

SCOPE 1+2 GHG EMISSIONS - MARKET BASED

2017

2018

2019

2020

846,437

732,545

791,896

767,702633,704

Tonnes CO2e

2021

Umicore has set a target for net zero Greenhouse Gas (GHG)
emissions by 2035, with intermediate milestones of a 20%
reduction by 2025 and a 50% reduction by 2030. These milestones
are set against our 2019 GHG emissions baseline: 791,896 tonnes
CO2e total scope 1 + 2 emissions. scope 1 emissions are direct GHG
emissions from owned or controlled processes and scope 2 emissions
are indirect GHG emissions from the generation of purchased energy.
Total market-based emissions in 2021 increased 16% to 846,437
tonnes CO2e , from 732,545 tonnes CO2e in 2020, due to an increasein activity in our Recycling and Energy & Surface Technology businessgroups. Despite this increase in activity and absolute emissions, ourcommitment to process efficiency is reflected in the decrease in
Umicore’s GHG intensity in 2021, with a ratio of .000213, comparedto the 2020 GHG intensity ratio of .000226.
Total location-based emissions were 791,687 tonnes CO2e. The
difference between the location- and market-based total indicatesthat on aggregate for all countries where we operate industrial
installations, the average grid mixes in the countries/regions leadto lower CO2e emissions than the specific electricity contracts
that we have in place. Umicore is working with energy suppliers
to conclude power purchase agreements (PPA) to significantly
reduce the market-based CO2-emissions by increasing the share ofpurchased carbon-free and low-carbon electricity. For more on ourefforts to secure long-term renewable energy contracts, see
our PPA announcements.
In 2021, scope 1 emissions were 372,699 tonnes CO2e, while market­
based scope 2 emissions were 473,738 tonnes CO2e, a 44/56%-split
between scope 1 and scope 2 (market based) emissions. scope 1
emissions increased by 13% year-on-year, compared with 330,619
tonnes CO2e in 2020. scope 2 emissions increased by 18% year-on­
year, compared with 401,926 tonnes CO2e in 2020.

48

UPSTREAM SCOPE 3, BY TYPE1
Tonnes CO2e

Goods & Services| 4815266
Distribution |190946
Capial Goods |113374
Fuel & Energy
activities |70764
Waste | 23916
Employeecommuting |10438
1 From a preliminary 2018 study, see Environmental statements

Umicore conducted a preliminary study on our 2018 upstream
scope 3 footprint, specifically considering purchased goods andservices, capital goods, fuel and energy related activities, upstream
distribution, waste generated and employee commuting. The
resulting scope 3 amounted to 5.2 million tonnes CO2e, a footprint
multiple times larger than Umicore’s scope 1 and 2 combined, and
87% of the total scope 1+2+3 upstream emissions for 2018. The vast
majority of the scope 3 emissions (more than 90%) are related tothe upstream emissions linked to purchased goods. In our case, ahigh share of the impacts comes from the metals linked to clean
mobility applications, in particular platinum, palladium, and rhodium
for automotive catalysts. The second largest contributing category is
upstream distribution.
As part of our commitment to the
Science Based Target
initiative , Umicore is updating its scope 3 inventory for the year 2019.
The running update includes all the relevant categories upstream
and downstream.
For avoided emissions, also referred to as “scope 4”, see
Sustainable Products & Services and the Environmental statements.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Regulatory compliance & management system
In 2021, some 58,000 environmental measurements were carriedout at all Umicore’s industrial sites, compared to some54,000 theyear before. The number of measurements that did not meet theregulatory or permit requirements is very low at 0.10% for the Group,compared to 0.15% in 2020.
Of the 54 consolidated industrial sites, 51 have put in place anenvironmental management system certified against ISO 14001.
Two of the remaining 3 sites are acquisitions/new sites that joined
Umicore reporting in 2018 and 2021, these sites are planning theimplementation of an environmental management system during2022. The other remaining site closed down at the end of 2021 anddid not undergo recertification in 2021.
In total, 104 environmental complaints were received in 2021, thelarge majority of which was related to noise and odor. 73 of thecomplaints are ongoing.

Managing impact from historical activities
In the mid-1990s, Umicore began divesting any mining rights
remaining from its historical predecessor companies. Mine closuresand restitution of concessions to state authorities are consistently
carried out in collaboration with the competent authorities andlocal stakeholders. Remediation projects for smelting and refining
installations are developed in close consultation to ensure any risks
are reduced to levels acceptable to the authorities.
Umicore’s proactive program for assessing and, where necessary,
remediating soil and groundwater contamination is defined in the
Umicore Way. The following paragraphs illustrate the progress madein the main ongoing programs during 2021.

Belgium
Our oldest predecessor company, Vieille Montagne, was granted amining concession by Emperor Napoleon Bonaparte in 1805, withfive more concessions added over time. Mining activities ceased in

the 1950s, and extensive rehabilitation work was carried out in close
consultation with the competent authorities. Four concessions were
officially retroceded to the Government, with the remainder ongoing.
Historical non-ferrous metals production in Hoboken, Olen, Balen
and Overpelt impacted soil and groundwater on the industrial sites
and on neighboring land. In 1997, Umicore concluded a voluntary
Covenant with the Flemish Region to deal with this historicalcontamination, signing an addendum in 2004 with the regional
waste authorities (OVAM) and the Flemish Regional Minister of theEnvironment. We committed to spend € 62 million over 15 years forhistorical pollution remediation on four sites, including two sites inBalen and Overpelt which were divested by Umicore in 2007 andnow belong to Nyrstar. OVAM and Umicore also joined forces toremediate historic pollution in the 9km perimeter surrounding theindustrial sites, over 10 years, both contributing €15 million to a new
remediation fund. Remedial efforts on Umicore sites will continue
as necessary.
The precious metals recycling plant in Hoboken was originally a leadand silver refinery. Over the years, Umicore has replaced heavily
contaminated topsoil and remediated historical contamination in theadjacent residential area. In 2022 a next phase in the groundwater
remediation will be initiated.
In Olen, pollution in and around the site results from historical
production activities of mainly copper and cobalt. An on-site
groundwater remediation program started in 2007 is ongoing. In
2020, contaminated soil and buried waste were further excavated atvarious locations where infrastructure work was needed.
Between 1922 and 1980, radium and uranium were also produced
in Olen, including radium used in experiments by Marie Curie.
The radium production plant was demolished during the 1970s
and the production waste was confined to a temporary but
long-term aboveground storage facility, according to contemporary
standards. In 2020, the Federal Agency for Nuclear Control issued
guiding principles for the permanent remediation and storage ofthis legacy radioactive material. Joint working groups, including
government agencies such as NIRAS/ONDRAF, OVAM, FANC and49

Umicore, are describing the steps towards a permanent storage
solution. Developing and implementing this detailed roadmap is
expected to take several years. Meanwhile Umicore continues
risk monitoring.

BrazilDuring an environmental assessment following the acquisition in2003 by Umicore of industrial units in Americana (SP), Guarulhos (SP)and Manaus (AM) in Brazil, pre-existing groundwater pollution was
detected at the Guarulhos site. Umicore installed a hydraulic barrierin 2011 to stop the spread of this contamination. Targeted extraction
systems were put in place on site to speed up the remediation.
Closure and the partial demolition of the industrial buildings in
Guarulhos, with the industrial activities having moved to Americana
during 2020 and 2021, will enable improved treatment of the corecontamination. State-of-the art remedial techniques were evaluatedduring 2021, for implementation which is expected to start in 2022.

FranceUmicore’s predecessor companies operated mines in the southof France from the mid-1800s. The last mining activities were
terminated by the early 1970s and extensive rehabilitation work
was carried out during the 1990s. All former mining concessions inFrance have been returned to the French government, with the lastconfirmed by ministerial decree in 2005.
Zinc mining in Saint-Félix-de-Pallières began in the 19th century. The
concession was closed in 1971 in full compliance with legislation
and was waived in 2004 by the French authorities. Umicore remains
in the area and regularly monitors a landfill containing flotation
residues, which remains Umicore’s property. To guarantee its long­term safety and stability, Umicore carried out and completed
extensive refurbishment work in 2021, including remodeling the land
surface, installing engineered stability layers, planting vegetationand improving the drainage system.
In Viviez, pollution in and around the site results from historical zincproduction activities started in 1855. Umicore invested € 40 million inUmicore Strategy Performance Leadership Statements About Glossary Backcovera large-scale remediation program from 2011 to the end of 2016 andhas transferred post-remedial obligations to a third party. Together
with other partners, Umicore joined a voluntary program in 2017 toaddress soil contamination in private gardens around the Viviez site.
Data were collected in 2017 and 2018 and measures were defined bya dedicated expert panel established by the competent authorities.
Umicore is currently preparing for execution of the work, and adetailed roadmap is being finalised.

USA
In 1980, Umicore’s predecessor company acquired an abandoned
silver-gold mine at Platoro in a nature recreation area in the Rocky
Mountains in Colorado. Subsequent exploration was unsuccessful
and further exploitation of the mine was stopped. In the 1990s awater treatment plant was installed, which was replaced by a newmodern facility in 2018 with a view to further decreasing metal
concentration in the discharge and the volume of solid waste. A
proposal received by Umicore/Union Gold in 2019 for a new effluent
permit was immediately contested by Union Gold, arguing against
the technical feasibility of the very stringent limits for arsenic to
be attained in 2024. The competent authorities accepted thesearguments and recommended applying for a less stringent permit
modification. Meanwhile, Union Gold tested additional treatment
steps in the wastewater treatment plant. Continuous improvement
work on the water treatment plant at the site has been undertaken
throughout 2021 and will continue in the coming years.
At the cobalt-producing facility operated by Umicore in Maxton, North
Carolina from 1980 to 2010, soil and groundwater contamination
were identified after closure and demolition of the plant. Umicore
entered a voluntary program with the authorities and has put inplace comprehensive groundwater remediation to address the issue
fully by 2033. In 2021, the land owned by Umicore was divested.
The forecast groundwater remediation plan over the coming years
has been refined with a view to further improving the long-term
management of the groundwater resource.

Umicore Integrated Annual Report 2021

50

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

51

Environmental key figures
unit

notes

2017

2018

2019

2020

2021

CO2e emissions (scope1)

tonne

E7

364,139

417,140

389,101

330,619372,699CO2e emissions (scope2) - Market based

tonne

E7

269,565

350,562

402,795

401,926

473,738CO2e emissions (scope2) - Location based1

tonne

E7

299,168

368,649

426,074

417,346

418,989

Energy consumption

terajoules

E6

6,532

7,458

7,476

7,591

8,308

Renewable electricity

%

E6

-

-

14

15

17

Metal emissions to water (load)

kg

E5

1,437

1,861

2,052

2,695

3,440

impact units

E5

125,688

144,657

174,725

216,739

190,464

kg

E5

1,829

1,564

864

984

994

impact units

E584,46388,04452,492

69,371

70,084

Metal emissions to water1
Metal emissions to air (load)
Metal emissions to air1
Diffuse metal emissions%

E5

114.20100.0064.80

SOx emissions

tonne

E5

661

657

531

389

372

NOx emissions

tonne

E5

320

304

280

239

240

Water withdrawal

thousand m3

E4

4,755

5,885

6,208

7,813

10,103

Fresh water withdrawal

thousand m3

E4

Total waste produced

tonne

E3

72,80478,77868,31799,434

94,619Hazardous waste1

tonne

E3

55,44258,75947,58978,05573,551of which recycled1

%

E3

4.3

5.3

7.9

5.0

8.0

tonne

E3

17,37320,01820,72821,37921,065

Non hazardous waste1

9,764

of which recycled1

%

E3

58.2

62.2

59.4

64.7

71.4

Compliance excess rate

%

E8

0.10

0.14

0.10

0.15

0.10

Environmental complaints

N°

E8

34

29

33

80

104

Sites ISO 14001 certified

%

E8

92

91

95

96

94

1 Some definitions of KPIs have changed over time. A direct comparison over all years is therefore not fully applicable. See the respective topics in this section [the Environmental Statements section] for further information.

Umicore Integrated Annual Report 2021

Employees
Link to strategic topics
Zero Harm
Zero Inequality

Link to key risks & opportunities
Talent attraction & retention

Link to Sustainable Development Goals

52

Umicore Strategy Performance Leadership Statements About Glossary Backcover

11,050Our employees are key to our success, and as a result, we invest
significant resources in ensuring we are an employer of choice in all
the regions where we operate. We support our employees and we
support their right to collective bargaining.

Group employees

22.5%
Women in our workforce

94%
Retention rate

Our long-term success depends on beinga safe workplace where employees feelengaged and take care of each other.
The Umicore Way, and our values of
openness, innovation, respect, teamwork
and commitment, are the cornerstone ofeverything we do at Umicore.

We engage in constructive dialogue with our employees and theirrepresentatives. Umicore renewed the Sustainable Development
Agreement with the international union IndustriALL in 2019. The
agreement covers the global implementation of a number of policies
including Human Rights, equal opportunities, labor conditions,ethical conduct, environmental protection and the participation of
trade unions in the pursuit of these objectives. See the full text of theagreement
here.
2021 was the year of the launch of the Let’s go for Zero strategy,
including a comprehensive people strategy. Engage@work is anextension of our Umicore values, in which we focus on caring for all
our colleagues. Engage@Work has four pillars:●●●●

Diversity & Inclusion - the way we think
Agile way of working - the way we lead
Learning & Growth - the way we learn
Wellbeing - the way we care

Umicore believes in entrusting a large degree of autonomy to eachof its business units. Following the strategy announcement in June
2021, corporate HR engaged with the business units to translate
Group-level ambitions collaboratively into objectives tailored to theindividual contexts of each business unit and the sites and regionsin which they operate. In the second half of 2021, implementation
focused on the Diversity & Inclusion and Wellbeing pillars.
We believe in equal opportunities, fairness, inclusion, and diversity.
We welcome all individuals regardless of age, cultural background,disability, ethnicity, gender, marital status, political opinion, religion,or sexual orientation. We value a mix of ambitions, approaches,
educational backgrounds, experiences, interests, personalities, skills,
and views. Diversity of thought can only improve innovation andultimately performance at Umicore.

Umicore Integrated Annual Report 2021

53

As a global company, Umicore is diverse by nature. As we continue
to build opportunities for diversity, we will also now direct our efforts
toward building even more inclusion.
Umicore strives to be a preferred employer of both current andprospective employees, and we are committed to their wellbeing
and to ensuring that Umicore is a healthy place to work. Umicore
promotes and safeguards physical, mental, social and occupational
health in the workplace, because wellbeing is fundamental for a
thriving workforce. Reducing stress and understanding local work
cultures are key elements of our Wellbeing@work programs.
We do not compromise on safety and seek to create an accident­
free working environment for all. We are committed to further
developing our safety standards and to setting up a safety culture
across all sites. Care is the basis to lead Umicore to zero work related
injuries which is the target set in our Let’s go for Zero strategy.
Umicore is committed to providing competitive salaries and working
conditions to our employees and to providing occupational andprofessional training opportunities. We empower all Umicore
employees to contribute to Umicore’s success. Performance isappraised regularly and rewarded equitably. 2021 was a year ofrecord performance thanks to all Umicore colleagues, who stayedsafe and kept operations running despite another year of COVID-19.
Our caring culture reinforces the sense of belonging at Umicore,
which is also reflected in the fact that we maintain a strong
retention rate.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Our employees are key to our success, andas a result, we invest significant resources inensuring we are an employer of choice in all
the regions where we operate. We support
our employees and we support their right tocollective bargaining.

Workforce

11,050TOTAL EMPLOYEESIn 2021, the total workforce increased by 320 employees to a
total of 13,639. The number of employees in the fully consolidated
companies increased from 10,859 at the end of 2020 to 11,050 at
the end of 2021, mainly due to growth in the Asia-Pacific, Europe
and South America regions. The most significant increase relates tothe further development of the cathode materials production site in
Poland. Amongst the associated companies there was an increase of
129 employees in 2021. While all the associated companies saw anincrease, Element Six Abrasives had the biggest increase despite thedivestment of the Wuxi plant.

WORKFORCE, BY REGION

North
AmericaSouth
America

587

1,031

Europe

701

4,135

7,185

Number of employees

Asia
Pacific

AfricaUmicore has had a systematic Group-wide internal reporting on Codeof Conduct matters since 2011. In 2021, a total of 25 cases werereported, involving a total of 33 employees. The majority of thesecases were about personal misconduct. The type of action taken
varies from a warning letter to dismissal.

EMPLOYEES REPRESENTED BY A UNION
OR COLLECTIVE LABOR AGREEMENT (CLA)
%

65.60

65.41

66.38

66.94

64.49
2017

2018

2019

2020

Most Umicore employees work on a full-time basis, as illustrated by
the full time equivalent (FTE) of 10,828 (consolidated), which is very
close to the reported headcount of 11,050 employees.

2021

Implementation of the Sustainable Development Agreement with
IndustriAll is overseen by a joint monitoring committee. All Umicore
sites are screened internally each year. In 2021, this screening
showed that none of Umicore’s sites demonstrated a particular risk of
infringement of any of the principles of the agreement.

Umicore Integrated Annual Report 2021

54

Umicore supports the right to organize collective bargaining
agreements. While such practice is commonplace in Europe, in otherlocations collective bargaining mechanisms and trade unions may
be less common or face local legal restrictions. In 2021, the highest
representation was in South America and Europe and the lowest in
North America. With a slight increase from 66.38% in 2020, 66.94%
of Umicore employees belong to a trade union organization and/or
the level of their wages were negotiated through a collective
bargaining agreement in 2021.
Umicore is committed to upholding the right to adequate
remuneration for all employees and the principle of equal
remuneration for men and women workers for work of equal value.
Remuneration and all other benefits are based on the principle offairness and are defined on the basis of whichever is highest among
the following criteria:● national legal standards, or● standards of the national branches, or● collective labor agreements
As part of the Let’s Go for Zero strategy announced in June 2021,
Umicore will start measuring and disclosing more formally how weapply the principle of pay equality.

Umicore Strategy Performance Leadership Statements About Glossary BackcoverIn the context of the Let’s Go for zero strategy and in the spiritof leading by example, senior management has received training
about inclusion and how to activate it. An e-learning on unconscious
bias is offered to all hiring managers as part of the recruitment
process and on a local level, many diversity & inclusion training
sessionsare conducted.

Diversity
WORKFORCE AGE SPLIT% of employees< 30 years | 17
Between 30 and
50 years | 59
> 50 years | 24

I’m fascinated to learn that everybody has
unconscious biases and that we can learn to changethese biases in a positive way.

WOMEN AT UMICORE% of employee category

21.92

2017

22.37
21.30

2018

22.98
20.88

2019

All employees
All managers

23.13
21.68

2020

23.06
22.48

2021

25.00

0

20

40

An inclusive work culture is essential forevery employee to feel well at work and to
be prepared for success.

Besides training, Umicore has installed several networks andemployee resource groups (ERGs), including the Focus on Women
network and a regional
LGBTQ+ network .These are voluntary,
employee-led groups that share a common interest, identity,
experience or common bond. The groups provide a safe space for
employees to support one another, focus on career development,
and support the organization. ERGs also encourage a culture ofinclusiveness and belonging. For more, seeFinding your voice.
We also build strong ties across different generations within theGroup: one example is in the R&D team at the Automotive Catalyst
business unit. A sounding board of young colleagues was put into
place to share ideas and thoughts with more senior colleagues.
Every six weeks, they debate on strategic topics for the business
unit and offer their suggestions to senior management for potential
further development.
Umicore is a global company headquartered in Brussels, Belgium.
As our global footprint continues to grow, we seek to increase
the diversity of experiences and cultures across the Group, and inparticular in senior management. A better balance in this regard will
enable us to make business decisions that are strongly aligned withthe markets we serve.

Umicore Integrated Annual Report 2021

55

One way to measure this is by looking at the diversity of nationalities:
in 2021 our employees covered 75 nationalities. The share of non­European representation in senior management positions increased
to 21.57% in 2021 from 20.13% in 2020, as a result of increasingawareness of business needs and closer follow-up of talent tobroaden the pipeline of candidates.
We set ourselves the Let’s go for zero target of gender parity assoon as possible, with an intermediate goal of 35% of womenin management by 2030. In 2021, 22.48% of Umicore employees
were women, which is only a slight increase from 21.68% in
2020. This incremental rise is attributed to the nature of industrial
operations, where candidates are usually men. Despite this, womenin management roles have increased from 23.06% in 2020 to 25%
in 2021.
Umicore recruits on the basis of competency and throughout theorganization there is a firm belief that increasing diversity of thought
is beneficial to our capacity to innovate. To meet our gender diversity
goals, our overall focus continues to be on recruiting and developing
female managers and in 2021, 45% of managers recruited were
women, up from 30% in 2020. Several actions were taken to reachthis number, including the implementation of gender-neutral job
descriptions, communication campaigns featuring female colleagues
and increased usage of job platforms with a specific focus on adiverse inflow of candidates. The type of management position andlocation of the role were also factors in increasing the diversity of
the candidate pool. The high inflow of women into management
positions in 2021 does not mean that there are no hurdles: thenature of the jobs in the technology sector, the reality that in somegeographies graduates for certain positions are mainly men, andthe ongoing war for talent remain challenges. The
Women
in Business Program shows how Umicore is tackling some ofthese challenges.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Talent management
TRAINING TIME, BY EMPLOYEE CATEGORYManagers

41.28

42.40

Average hours of training per employee

Otheremployee
categories

TRAINING TIME, GENDER SPLIT

41.21

42.90

Average hours of training per employee

Men

Women

To anticipate and seize opportunities in the market and torespond quickly to customer needs, Umicore is adopting an agile
way of working. Agility is our ability to anticipate, adapt andrespond quickly to change. Agility means we engage in building
a collaborative workplace where employees take the initiative,
challenge the status quo and propose new solutions, across business
units, functions and regions. All employees are encouraged to takeownership and to lead from wherever they stand.
In 2021, we introduced our unique leadership model – the Leadership
Compass – which has three pillars: win from within, engage with
impact and go beyond borders. It combines a winning approach,an entrepreneurial attitude and engagement with teams andcolleagues: our leaders instill their passion and drive, care for theircolleagues, engage with their teams for a common goal and calculaterisks by looking beyond their own horizon. We have clarified the
expectations of senior management and integrated these behaviors
into our way of recruiting, our assessment tools, training, talentreview, succession planning and our project management.
Employee mobility is a way to bolster an agile way of working:working in more than one country, business unit or job family
stimulates employees to adapt and to respond quickly to change.

My expat experience means getting out of mycomfort zone, adapting to new environments,
being open to new ideas and appreciating different
ways of working … all these competencies are
key for the agile, dynamic organization Umicore is
striving to be!

At Umicore we engage in creating a culture of continuous learningwhere employees take ownership of their personal and professional
growth. Our prime focus is developing future-oriented skills andbehaviors in our workforce. Umicore promotes career developmentusing an internal online vacancies tool and we operate a Group-wide
learning management platform called “My Campus”. Specifically tostrengthen our digital competencies, Umicore has introduced the
Umicore Technical & Digital Academy to strengthen technology
skills and share learning. We prepare for future transformations
and seek to acquire the right skills that will contribute to
Umicore’s success.
Especially due to COVID-19, training at Umicore is increasingly
in a blended learning format. Digital transformation requires

Umicore Integrated Annual Report 2021

56

reskilling and upskilling. The Digital Heroes program stands as
an example of Umicore embracing peer-to-peer learning. The 300­
strong community of employee volunteers has dedicated itself
to learning the latest digital workplace tools for efficiency andeffectiveness in their jobs. They share knowledge with each otherand find answers to each other's questions via Umicore’s enterprisesocial network so that they can pass on that knowledge to theircolleagues. The result is a self-learning workforce based on a
global network.
Umicore also offers programs for emerging talent, middle andsenior managers. The Junior Management Program ( JUMP) is offered
to a selected group of junior managers using a “twin-coaching”
format, bringing together two participants from different regions
and business units, to develop international thinking, shadow bestpractices and provide exposure to other business units. Leadingfor Excellence (L4E) is offered to a selected group of managers
in the Asia Pacific region to drive performance in the region by
fostering collaboration and engagement across sites and sharpening
leadership skills. Entrepreneurs for Tomorrow (E4T) is a programfor a selected group of middle to senior managers to develop
corporate culture with highly competent managers and promote
cross-functional integration within Umicore. Due to COVID-19 these
programs were either on hold or conducted digitally in 2021.
In 2021, the average training time per employee reached 42 hours,
higher than 36 hours in 2020. This was partly attributed to theincreased offering of online training, coupled with face-to-facetraining where possible while still respecting the COVID-19 measuresprevailing at the time. In 2021, managers training hours (42 hours)
were slightly higher than for other employees (41 hours) and womentraining hours (43 hours) were slightly higher than for men (41 hours).
We noticed the average training hours for the gender and managers
and other employee categories splits are reaching close to similarvalues, which we see as a positive trend.
In 2021, 94.14% of all employees from fully consolidated companies
had an appraisal interview to discuss their development at least once
during the year.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

In 2021, we conducted the 8th edition of our People Survey –Umicore’s employee opinion survey that is organized every three
years. It provides insights on how we perform as an organizationand - more importantly - how we can continue to grow and makeprogress. There was an overall participation rate of 80%, whichshows a remarkable level of engagement. For the second timein succession our overall average is above the Chemical Industry
norm1 and approaching the High Performing norm2, with significant
progress made in several areas since our last survey in 2018.

Employee engagement

94%
RETENTION RATE

80%

Collaboration and care for each othercame out as clear strengths for
Umicore and underline the true spirit of
the #UmicoreFamily.

PARTICIPATION IN
EMPLOYEE SURVEY

VOLUNTARY LEAVERS RATE BY REGION

EuropeNorth
America

11.62
South
America

1.88

4.91

2.69

8.17

%

Asia
Pacific

AfricaCare is key to avoid work-related injuries and reach Zero Harm, oneof the pillars of our Let’s go for zero strategy. However, today wehave yet to achieve this ambition. The first key steps in achieving
our Zero Harm objective include encouraging everyone to become
safety leaders and safety coaches. The survey highlighted that theengagement and vitality of our management population is very high.
Gender inclusion is also very high, which is a proxy for total inclusion.
Women in Umicore feel at home. Men and women have a similar
scoring on questions such as collaboration, meaning that they havethe same voice in the company.
The results of the People Survey also demonstrate that we still haveroom to become more agile as an organization in today’s fast-moving
context. We will continue to drive more entrepreneurship, encouragecolleagues to take initiative across business units, sites and regions
and foster accountability. Therefore, employees are invited to leadfrom where they stand according to our Leadership Compass.

Umicore Integrated Annual Report 2021

57

results have been shared with the business units, sites and regions
to be translated into local action plans that build on our strengths oraddress areas of improvement.
Our employees are key to our success and the driver for reaching
our desired business growth. As a result, we aim to ensure Umicore’s
status as an employer of choice in all the regions where we operate.
In 2021, Umicore received the Top Employer certification in Belgium
for the 16th successive year.
In 2021, our overall retention rate decreased to 94%, from 96% in
2020. In 2021 the voluntary leavers rate increased to 5.82% from
4.20% in 2020. Significant regional differences in retention rates
continue, with Asia-Pacific reporting the highest voluntary leaver
rate at 11.62%. The higher voluntary leaver rate in Asia-Pacific is notunique to Umicore and can be explained by a highly competitiveand fluid labor market in that region. Except for Korea, Umicore’s
voluntary leaver rate is lower than the market in most Asian countries
including China, Japan, India and Thailand. In general, the war for
talent is also experienced in the other regions. Of the voluntary
leavers worldwide, 19.16% were women, slightly up from 18.78%
in 2020.

We are proud of our position as a pioneer
and world leader in materials technology andsustainability, and in a disruptive industry,
we need to continue innovating, challenging
the status quo and growing, both as acompany and as an employer.

Applying and embracing the Compass and its three pillars – win fromwithin, engage with impact and go beyond borders - will help us
become more agile and stay ahead of the pack. The People Survey
1
2

The Chemicals Industry Norm is the average score of companies in the chemical sector collected by our external supplier Korn Ferry (KF).
The High Performing Companies Norm is based on companies’ financial performance and engagement and enablement scores, with financial performance weighted more heavily. To be included, companies must exceed industry averages on the majority of financial
indicators. Companies must also score above the average of engagement and enablement within KF Listen’s survey database.

Umicore Strategy Performance Leadership Statements About Glossary BackcoverWellbeing

greater sense of belonging. Umicore is working on four areas ofwellbeing: we promote and safeguard physical, mental, social andoccupational health in the workplace, adapted to individual andregional circumstances. We find ways to connect with each other andwith the communities in which we operate.
We want to improve knowledge and raise awareness on criticalaspects of mental wellbeing. Mental health is a growing concern
and the real issue of digital fatigue was accelerated by the pandemic.
For all managers and supervisors, enabling tools such as training
and burnout prevention are being developed and made available.
This overall program is supplemented with regional initiatives, forexample Umicore Brazil organized a ‘Pink October Campaign &Mental Health’ event. A physician and an employee discussed theimportance of preventive exams for breast cancer and the benefits ofmeditation for mental health.

At Umicore, we aim to create a healthy
workplace where employees can grow,thrive and take care of each other.
For many years, Umicore has strived to offer a great place to work
and we are committed to wellbeing as part of our values in The
Umicore Way. As the intensity of jobs has increased over the years,
our Zero Harm pillar of the Let’s go for Zero strategy focuses on the
Wellbeing@Work program with care as a cornerstone.
Wellbeing is essential to the overall health of our employees
and therefore crucial to the professional performance and successof Umicore. It stimulates personal performance and engagement
and thus improves productivity, safety and retention. It is also
crucial to enable Umicore to attract young talent and to create a

To ensure physical wellbeing, voluntary preventive health checks
to all employees are offered and across the Group local health plans
are under development to intensify individual health promotion
and counseling on critical topics such as nutrition, weight, smoking
prevention, cardiovascular risks, substance abuse, etc. This work is
supported by local campaigns on health topics. See some initiatives
our Polish teams took for their mental and physical healthhere.

Umicore Integrated Annual Report 2021

thrive. Giving people the necessary autonomy in their job, balancing
authority with competences, ensuring a proper work-life balance,
open communication and digital hygiene are a few examples of how
Umicore is seeking to achieve this healthy working environment.
Recognizing and monitoring early symptoms is secondary prevention
and finally, coaching and support are essential in case of problems.
The COVID-19 pandemic has stressed even more how important it
is to maintain the wellbeing and vitality of our employees. Manyregional initiatives contribute to this goal:● In 2021, operators from our production site in Shirwal in India
stayed in a hotel for weeks as they were asked to stay inquarantine between working hours. Individual counseling via a
hotline was available to them 24/7 to provide support in case theyexperienced difficulties.
● In Umicore South America, external experts called all employees
working from home to identify any mental, physical or logisticalchallenges. The management team was successful in resolving
some of the identified issues and the vast majority of theemployees were proud of Umicore’s actions and support, or verysatisfied with them, during the pandemic.
See more on how Umicore cares for its people

In terms of social wellbeing, it is imperative to strengthen thesense of belonging among colleagues, teams and with supervisors
and neighbors. Our People Survey – as described in employee
engagement – confirms that people feel proud to work for Umicore
and we want to maintain this engagement through ongoing dialogue
with our employees.
Offering safe and healthy workplaces is crucial to ensure
occupational wellbeing and in the following chapters, we describeour 2021 performance in occupational health and safety.
To promote Wellbeing@Work, Umicore emphasizes prevention forexcessive stress at work and burn-out on three levels. First ofall, it is important for the organization to create and maintain aworking environment where people feel safe and can grow and

58

here.

Due to the continued COVID-19 pandemic in 2021, Umicore introduced
a new Group-wide teleworking policy: if the role and the nature of
the tasks allow it, employees can be allowed to work from home.
A better work-life balance and a continued sense of belonging
were the inspiration for this policy – aiming to contribute tomore Wellbeing@Work.
The baseline to measure Umicore’s performance in wellbeing will beestablished in 2022.

Umicore Strategy Performance Leadership Statements About Glossary BackcoverOccupational safety

81%
REPORTING SITESWITHOUT LTA

73
LOST TIME ACCIDENTS

LOST TIME ACCIDENTS, BY BUSINESS GROUP
Number of LTAs

Catalysis | 6
E&ST | 11
Recycling | 49

The safety of our people is a key priority.
Umicore is committed to ensuring the highest level of safety in allits facilities, with our Let’s go for Zero ambition to achieve zerowork-related injuries. In 2021, our overall safety results were again
disappointing despite 81.3% of the reporting sites operating without
any lost time accident and 59.3% of those sites being ISO 45001
certified. Umicore recorded 73 lost time accidents in 2021 compared
to 49 in 2020. 62 lost time accidents, representing 85% of the total,

occurred in Europe and of these, 51 lost time accidents occurred on
Belgian sites and 9 on German sites. The Asia-Pacific sites accounted
for 7 accidents. 3 lost time accidents occurred on North American sites
and 1 on a South American site. In total 2,328 calendar days were lost
due to lost time accidents, a decrease compared to 9,176 in 2020. 20
lost time accidents were registered for contractors compared to 17
in 2020. The lost time accident frequency rate was 3.70, an increase
from 2.52 in 2020 and the severity rate was 0.12, a decrease from
0.47 in 2020. There were 104 reported recordable injuries, down from
119 in 2020. The recordable injury frequency rate for 2021 was 5.28
compared to 6.13 in 2020.
In 2021, the Catalysis business group recorded 6 lost time accidents
compared to 7 in 2020. The business group has implemented a newsafety organization with a steering committee of senior managers
defining the priorities and strategy and ensuring that the necessary
resources are available. Focus areas are safety leadership programs,
risk competency, engagement of the entire staff and organizational
learning. All Automotive Catalysts production plants are required tobe certified against the ISO 45001 management system. At year-end,
the sites in Port Elizabeth (South-Africa), Himeji ( Japan) and Rayong(Thailand), had operated over 5 years without any 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) and Tokoname ( Japan) had operated more than 3 years
without a lost time accident or recordable injury to Umicore staff andno lost time accident to contractors.
The Energy & Surface Technologies business group recorded 11 losttime accidents, compared to 8 in 2020. The sites further deployed
their safety actions around 3 main pillars: ‘men’, ‘machines’ and‘methods’. At year end, the sites in Dundee (UK) and Tsukuba( Japan) were recognized for their excellent and sustained 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 to contractors. The site in Hsinchu Hsien(Taiwan) operated more than 3 years without any lost time accident

Umicore Integrated Annual Report 2021

59

or recordable injury to Umicore staff and no lost time accidents
to contractors.
The Recycling business group had 49 lost time accidents compared
to 34 in 2020. The site in Hoboken (Belgium, Recycling) reported 43
lost time accidents compared to 27 in 2020. The site is deploying acomprehensive safety program based on cultural change including
a thorough safety leadership program and continued investment intechnical safety. To support these programs, organizational changes
were made, including hiring new head of the safety department
and setting up a professional fire department. At year end, the
UMS site in Bangkok (Thailand) operated 3 years without any losttime accident or recordable injury to Umicore staff and no lost time
accident to contractors.
The general services and corporate offices, including Corporate
Research & Development counted 7 lost time accidents.
Umicore continues its internal HAZOP leader training program toincrease and secure process safety knowledge. In 2021, process
safety activities focused on executing process risk assessment
studies. At year end, over 81% of the production processes hadreceived specific process hazard and risk assessments compliant
with Umicore standards. A detailed timeline for completion of theremaining studies over the coming years prioritizes processes withhigh risk profiles. The Group is also further reinforcing standards
on critical process safety aspects. Over the course of the year,
Umicore continued with the roll-out of programs aimed at creating
a more prominent caring safety culture with a focus on growing acoaching mindset and lowering the level of risk tolerance. Umicore’scommitment to safety is unwavering. Tackling cultural change interms of safety is the only right path to creating a safe and greatplace to work. To that end, following the newly implemented Let’s
Go for Zero strategy, Umicore is implementing a ‘Coaching4Safety’leadership program and a mandatory risk competency program for allsites, to support evolving to a caring safety culture. To further develop
and deploy Umicore’s safety vision and strategy, Umicore is hiring aGroup Safety Director.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverOccupational health
EXPOSURE RATIO, ALL BIOMARKERS AGGREGATED1
%

2.7

2.8
1.8

2.0
1.5

2017

2018

2019

2020

2021

1 Ratio between the number of monitoring results exceeding the Umicore target value, definedfor relevant hazardous substances, and the total number of monitoring results.

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-basedtargets for potentially hazardous exposure that are more stringent
than legal requirements, where they exist. All employees with apotential workplace exposure to any of the target metals (arsenic,
cadmium, cobalt, indium, nickel, lead and platinum salts) orother metals are monitored by an occupational health surveillance
program. The Let’s Go for Zero target for occupational exposure isto reduce to zero the number of individual readings that indicate
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 of recent or
lifetime exposure and are used as the basis for further improvementson specific sites. We aim to have no exceedance of the biomarkers of
exposure for the following metals and target values:● Arsenic: 30 micrograms per gram of creatinine in urine● Cadmium: 2 micrograms per gram of creatinine in urine● Cobalt: 15 micrograms per gram of creatinine in urine
1

●
●
●
●

Indium: 1 microgram per liter of plasma
Lead: 25 micrograms per 100 ml of blood
Nickel: 30 micrograms per gram of creatinine in urine
Platinum salts: no new cases of platinum salt sensitization

In 2021, a total of 7,228 biological samples were collected from
employees with occupational exposure to at least one of the metals
mentioned above (platinum salts excluded). 106 readings showeda result in excess of the internal target value, bringing the total
excess rate to 1.5 %, down from 2.0% in 2020. All occupationally
exposed employees are regularly monitored by an occupational
health physician in line with regulatory requirements and Umicore’s
occupational health guidance.
1

ArsenicOccupational exposure to arsenic is possible in the business groups
Energy & Surface Technologies and Recycling. In total, 12 employees
or 1.3% of the 906 occupationally exposed workers had an excess
reading during 2021, slightly more compared to the 0.8% excess
rate in 2020. This increase is mainly due to 3 excess readings
at the Hanau site (Germany, Catalysis) of operators cleaning acontaminated container. All workers occupationally exposed toarsenic are submitted to a medical surveillance program to closely
monitor their health condition.

60

2.7% in 2020. In the business unit Rechargeable Battery Materials
we noted an excess rate of 0.9% in 2021, a slight decrease fromthe 1.2% excess rate in 2020. The excess readings in the business
unit Cobalt & Specialty Materials were at 10.6%, comparable to theperformance 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. This ‘zero dust’ program focuses on
equipment improvements and workers’ behavior. Concrete actions
include technical improvements, awareness programs, regularindustrial hygiene campaigns, excellent housekeeping and improved
maintenance of critical equipment. The business unit Cobalt &Specialty Materials intensified its dust reduction program with thefocus on technical improvements, encapsulation of equipment,enhanced ventilation systems and strict application of personal
protective equipment procedures including respiratory mask fit
testing for 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
biological monitoring and medical surveillance.

Cadmium
Occupational exposure to cadmium represents a potential health riskin the business groups Energy & Surface Technologies and Recycling.
Cadmium in urine is an excellent biomarker for lifetime exposure.
In 2021, a total of 426 employees had an occupational exposure to
cadmium. Only 1 employee recorded a cadmium in urine reading inexcess of the target value. This resulted in an excess rate of 0.2%, thesame as in 2020.

CobaltIn total, 2,041 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 45, resulting in an excess rate of 2.2%, down from

The value for 2020 has been restated from 1.6% to 2.0%. This change is the result of Umicore lowering its internal target value for lead as described below.

IndiumThe business group Energy & Surface Technologies has exposure
to indium. Indium in plasma is an excellent biomarker for lifetime
exposure. In 2021, the biological monitoring program as well as theannual occupational health surveillance check at the site in Balzers(Liechtenstein, Energy & Surface Technologies) had to be postponeddue to the COVID-19 pandemic. The checks are now scheduled for the
1st quarter in 2022, so we cannot report the 2021 performance in thisannual report.

Lead
Occupational lead exposure represents a potential health risk, mainlyin the business group Recycling. In 2021, Umicore lowered its internal

Umicore Strategy Performance Leadership Statements About Glossary Backcovertarget value for lead from 30 µg/deciliter blood to 25 µg/dl blood. In
total, 1.4% of the 1,271 occupationally exposed employees exceeded
the target value of 25μg/100ml down from 2.5% in 2020 (restatedexcess rate for 2020 following the lowered target value). The
decrease in excess readings is the result of continued improved
workplace hygiene measures mainly at the lead refinery at the
Hoboken site (Belgium, Recycling). The site continues to implement
improved engineering controls while ensuring timely training for
newly hired staff. Strict attention is paid to personal protective
equipment compliance. Because of the lowered target level forlead in blood, the occupational health department has intensified
its biological monitoring program to follow up more closely on
employees with higher lead in blood values.

NickelThe business groups Energy & Surface Technologies and Recycling
have occupational exposure to nickel. In 2021, a total of 2,405
employees were exposed to nickel. In 2021, 30 of the exposed
workers exceeded the target level resulting in an excess level of 1.2%
compared to 2.0% in 2020. The business unit Rechargeable Battery
Materials saw a significant decrease in excess readings from 2.4%
in 2020 down to 0.5%% in 2021, mainly related to reduced exposure
at the site in Jiangmen (China, Energy & Surface Technologies).
A targeted program focusing on technical improvements, raisingawareness and training programs as well as improved personal
protective equipment compliance contributed to this result. The
site in Subic (Philippines, Energy & Surface Technologies) reported
an increased excess rate of 20.2% compared to 10.7% in 2020,
mainly due to increased production volumes. The site is deploying acomprehensive dust reduction program.

Platinum salts
The business groups Catalysis and Recycling have workplaces with
exposure to platinum salts. In 2021, there were no newly diagnosed
cases of platinum salt sensitization.

Other occupational related diseases
The number of occupational diseases is the number of employeeswith a newly diagnosed occupational disease during thereporting year.
In 2021, 8 employees developed a musculoskeletal disorder due totheir occupation. All the people concerned are being followed up
by an occupational health physician. The production site in Kokkola(Finland, Energy & Surface Technologies) was not able to report
its numbers.
Over the past years, Umicore has been confronted with several
burn-out cases that led to long-term sickness with impact on boththe individual and the organization. During lock-down periods ofthe pandemic, many office employees had to work from theirhome office and often for longer periods, and as a result Umicore
rolled out awareness campaigns to help prevent and fight against
digital fatigue. Measures to ensure the wellbeing of employees
included regular virtual contacts among team members, leaflets on
the company’s intranet with tips and tricks to organize teleworking,
online social events, and more.

Wellbeing@work is an important program
under the Let’s Go for Zero strategy. Bothregional and Group programs are being put
in place.

Umicore Integrated Annual Report 2021

61

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover62

Social key figures
unit

Notes

2017

2018

2019

2020

2021

No.

S2

9,769

10,420

11,152

10,85911,050Temporary contracts% of workforce

S2

3.86

3.13

3.31

3.19

3.51

Women amongst all employees% of workforce

S2

21.92

21.30

20.88

21.68

22.48

Women amongst all managers% of workforce

S2

22.37

22.98

23.13

23.06

25

Women amongst senior management% of workforce

S2

6.77

9.70

10.96

10.74

12.42

Workforce (fully consolidated companies)

Non-European representation in senior management functions

%

S2

18.05

17.91

18.49

20.13

21.57

Average training hours per employee

hours/employee

S3

45.33

43.10

48.73

36.33

41.59

Employees having a yearly appraisal% of workforce

S3

98.29

96.15

94.00

93.42

94.14

Voluntary leavers - ratio% of workforce

S3

5.03

7.18

5.99

4.20

5.82

Employees represented by union or Collective Labour Agreement (CLA)% of workforce

S2

65.41

64.49

65.60

66.38

66.94

Exposure ratio 'all biomarkers aggregated'1

%

S5

2.7

2.8

1.8

2.0

1.5

Exposure ratio lead (blood)2

%

S5

0.5

2.0

0.9

2.5

1.4

Exposure ratio arsenic (urine)2

%

S5

1.0

1.2

0.8

0.8

1.3

Exposure ratio cobalt (urine)2

%

S5

6.0

5.0

3.4

2.7

2.2

Exposure ratio cadmium (urine)2

%

S5

0.7

0.5

0.2

0.2

0.2

Exposure ratio nickel (urine)2

%

S5

1.4

2.6

1.8

2.0

1.2

Exposure ratio indium (blood)2

%

S5

14.2

2.8

1.9

1.6

0

People with platinum salts sensitisation

No.

S5

1

3

1

1

0

People with noise-induced hearing loss

No.

S5

0

0

5

3

0

People with contact dermatitis

No.

S5

2

3

4

0

0

People with occupational asthma other than Pt-salts

No.

S5

0

0

0

1

2

People with muskulo-skeletal ailments

No.

S5

8

6

8

1

8

Fatal accidents

No.

S4

0

0

0

1

0

Fatal accidents sub-contractors

No.

S4

0

1

0

0

0

Lost Time Accidents (LTA)

No.

S4

51

61

90

49

73

Lost Time Accidents (LTA) sub-contractors

No.

S4

22

21

25

17

20

S4

3.01

3.36

4.6

2.5

3.7

S4

1,590

1,830

3,893

9,176

2,328

S4

0.09

0.10

0.2

0.5

0.1

LTA frequency rate
Calendar days lost
LTA severity rate

No.

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 are 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.

Umicore Integrated Annual Report 2021

Society
Link to strategic topics
Clean Mobility & Recycling
Zero Harm
Zero Inequality

Link to key risks & opportunities
Information security & data protection, Regulatory & legal
context, Sustainable & ethical supply

Link to Sustainable Development Goals

63

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Our mission of Materials for a Better Lifedrives us to develop material solutions forsociety’s most pressing issues while westrive to maximize our positive impact
The Umicore Way is the cornerstone of everything we do at Umicore
and outlines our commitments to society. Our Sustainable Products &Services focus on supporting the global transition towards reducing
climate impact and on supporting a better understanding and faster
implementation of circular economy models related to our activities.
In the countries and regions in which Umicore is operationallyactive, we support policy developments that bolster clean mobility
and the global energy transition to reduce climate impact.
In addition, we contribute to better understanding and faster
implementation of circular economy models in the applications
related to Umicore activities.
To boost our efforts, Umicore participates in many partnerships
and knowledge-sharing platforms. We regularly enter scientificpartnerships with public institutions such as universities, with theprimary aim of furthering research projects or providing expert
advice on technology directions. Partnerships and research grants areoccasionally contracted with public organizations.
Umicore actively advocates for best practices in the value chain.
Our Zero Harm ambition is linked to our continued commitment
to sustainably and ethically sourced raw materials. Beyond ourlong-standing approach to protecting Human Rights in our supply
chain, most notably for ethical cobalt sourcing, and in light of theaccelerating transition to electromobility, it is crucial to secure raw
materials supply that is reliable and environmentally and socially
responsible. Umicore will further build on its long track record of due
diligence in the sourcing of critical raw materials.
Contact with the communities where Umicore operates is themost direct way that we interact with society. Open andtransparent dialogue with such communities is an integral partof our stakeholder engagement. Through employment, Umicore
participates in the generation of wealth in the areas where it
operates. We strive to be top employer wherever we operate.
Although wealth generation is an obvious benefit, the way in which
this wealth is generated is also of great importance. Civil society
groups periodically declare a stake in our operations and the way
we do business. Umicore welcomes such interest and attempts toengage openly and constructively.
Umicore makes voluntary contributions at site and Group level toa range of charitable causes. We manage Group-level engagement
efforts through a Group Donations Committee that has the mandate
to engage with civil society groups and determine the extent ofpartnerships. As a matter of policy, Umicore does not make donations
to political parties or organizations.
Umicore paid € 202 million in taxes on our 2021 operations and with
our employees contributed € 109 million in social security payments.

Engaging for impact

Umicore strives to reach the highest possible
impact for society with our products &services portfolio and with the way we
do business.
Our technologies in clean mobility and resource efficiency are an
enabler to mitigate climate change. Therefore, a more ambitious
agenda in terms of climate change is creating market opportunities
for Umicore – which is in line with our corporate purpose of
integrated value creation. To support ambitious regulations, wedemonstrate our technologies and advocate for ambitious targets,
because Umicore technology can reach those ambitions. Umicore
provides technical insights to support achieving these goals – e.g.,by providing science-based targets to authorities. Umicore co-writes
longer-term technology roadmaps with regulators, academics andother members of industry.

Umicore Integrated Annual Report 2021

64

In resource efficiency, our technologies offer the samefunctionalities while reducing use of metals. We extract fewer natural
resources and re-use metals to create our advanced materials. We
emphasize the links between a circular economy and responsible
sourcing, resource efficiency and high-quality recycling. Umicore ismindful of the sensitivity of taking positions on matters of public
interest and has developed guidelines to do so responsibly throughthe industry groups to which we are affiliated. Well-developedscience and facts form the basis of the opinions and position we take.

We share our knowledge and collaborate
with many partners to advance theglobal transition towards a green andcircular economy.
In 2021, the World Economic Forum’s Global Battery Alliance (GBA)
evolved into an independent association and Umicore chairs the
Executive Board. NGOs, academic players, authorities and industrial
members are collaborating to establish a battery passport with a
QR code that on a global scale will transparently show the source ofthe raw materials in the battery and provide a carbon footprint of thebattery. In 2021, important progress has been made on developinga CO2 footprint methodology and a Child Labor Index, both to
be integrated in the battery passport. The technology to actively
follow an element reported in the passport is being developedin the market, for example in the Re|Source startup, describedin Innovation.
In addition, Umicore contributes to the WEF Circular Cars working
group. This initiative is focused making the car industry morecircular and creating the same functionality with fewer resources.
This work explores the impact of a second life battery market,
material passports and design-for-recycling concepts in the future
automotive and transportation business models.
In Europe, Umicore has also actively participated and supported
the creation of the European Battery Alliance (since 2017) and theBattery European Partnership Association (BEPA) which is the public­

Umicore Strategy Performance Leadership Statements About Glossary Backcoverprivate entity that supports the European Commission in defining thetechnology roadmaps and the research and innovation priorities tobe funded in the 2021-2027 timeframe (under the Horizon Europe
program). Umicore is a co-chair of this association.
With most developed countries and regions outlining their hydrogenstrategies to support their journey towards climate neutrality,
Umicore is active in various hydrogen-related advocacy platforms
such as Hydrogen Europe, the Hydrogen Council, Waterstofnet
and the European Raw Materials Alliance. In these platforms,
Umicore highlights the key role that advanced materials such as
electrocatalysts play in enabling the production of hydrogen byelectrolysis and its conversion back into energy using fuel cells. We
also highlight the promises of LOHC (liquid organic hydrogen carrier)technology for the transport of hydrogen and our ability to recycle
these various hydrogen technologies to recover the precious metals
and re-use them in new electrocatalysts.
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 automotiveengineering companies, we aim to contribute significantly to theportfolio of ultra-clean transportation options of the future, using
the most advanced emission control technologies.
Umicore collaborates with the European Commission to define
minimum compulsory due diligence requirements for the entire
value chain with all materials in scope and plays a pivotal role bysupporting strong ambitions in the trade committee of Eurometaux.
Through the collaboration in Eurometaux, Umicore contributed to thedevelopment of the new European waste shipment regulation in
2021 to stimulate the circular economy. The new regulation will allow
more efficient processing of hazardous waste without concedingon stringency.

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 is 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 for a 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 support for innovation.
Umicore regularly enters scientific partnerships with public
institutions such as universities with the primary aim of furtheringresearch projects or providing expert advice on technology
directions. Partnerships and research grants are occasionallycontracted with public organizations. In 2021, these partnerships
included IMEC, the Queensland University Australia and CIRAIG.
CIRAIG is an internationally recognized life cycle center of expertise
located in Montreal (Canada) with close to 15 years of appliedexperience rooted in solid science. The main research unit, theInternational Life Cycle Chair (ILC Chair), conducts leading-edge,
interdisciplinary life cycle research and develops results-oriented
tools to resolve complex and critical sustainability issues incollaboration with its partners. Its scientific research program
resolutely considers environmental and social life cycle assessments(LCAs) as strategic decision-making support tools for value creation.
Umicore has been a partner of the International Life Cycle Chair since2012 and we have developed several LCAs in close collaboration
with the CIRAIG. In 2021, CIRAIG supported Umicore in estimating
avoided emissions arising downstream through the use of cathodematerials for EV applications and through our recycling services. For
more, see Sustainable Products & Services.

Umicore Integrated Annual Report 2021

65

KEY MEMBERSHIPS
A3M (L’Alliance des Minerais, Minéraux et Métaux); Agoria (Belgian multi­
sector federation for the technology industry); American European Community
Association (AECA); Belgian Alliance for Climate Action (BACA); Belgo Indian
Chamber of Commerce and Industry (BICC&I); Belgian industrial Research andDevelopment (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
Network of Enterprises (Voka); Flanders-China Chamber of Commerce (FCCC); Global
Legislators for a Balanced Environment (GloBE EU); TransAtlantic Business Council(TABC); Verbond van Belgische Ondernemingen (VBO); World Economic Forum(WEF); The Shift; UN Global Compact.
Associacao dos Fabricantes de Equipamentos para Controle de Emissoes Veicularesda 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); Essencia; 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);
London Bullion Market Association (LBMA); London Platinum and Palladium
Market (LPPM); European Precious Metals Federation (EPMF), International Lithium
Association (ILA).

Umicore Strategy Performance Leadership Statements About Glossary BackcoverPioneering approach in our supply chain€22.7bPaid to suppliers worldwide

DISTRIBUTION OF SUPPLIERS’ ECOVADIS SCORES1%

score 0-25 | 1.6score 25-44 |14.5score 45-65 |55.6score 66-80 |28.2
1 0-25: unsufficient progress on sustainability, 25-44: some basic steps made on sustainability
issues, 45-65: appropriate sustainability management issues, 66-80: advanced practices onsustainability, 81-100: outstanding sustainability management systems

DISTRIBUTION OF SUPPLIERS’ SCORES BY ECOVADIS TOPIC1%

Environment
Labor & Human
Rights
EthicsSustainable
Procurement
Overall

59.52
58.95

Group

52.18
48.71
56.58

0

50

We leverage our sustainability approachin the value chain, both upstream with
our suppliers and downstream withour 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 our Let’s Go for Zero
strategy to cause zero harm in our supply chain.
Our approach is shaped by our new
Umicore Global Sustainable
Sourcing Policy - an update of our Sustainable Procurement Charter- and aims to mitigate supply chain risks, through both direct andindirect procurement. The policy defines our expectations fromsuppliers and is fully aligned with the
Umicore Way , theUmicore Code of Conduct and the Global Framework Agreement
on Sustainable Development between Umicore and the IndustriALL
Global Union.
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 laws, to ensure health & safety,
to minimize the impact on climate and the environment, and torespect international Human Rights law on their own sites andfrom their own suppliers, including abolishing child and forcedlabor and eliminating discrimination. This policy is complemented
on a risk-based approach by specific frameworks for some criticalraw materials.

Umicore Integrated Annual Report 2021

66

Indirect procurement
Umicore’s worldwide purchasing and transportation teams procure
the energy and other goods and services referred to as indirect
procurement. In 2021 the indirect procurement spend remained
stable compared to the previous year. The main indirect procurement
spend is to be found in Belgium, Germany, Poland, Finland, China& Korea1.
Since 2017, in most regions, new suppliers have been systematicallyassessed through a quick scan based on criteria such as size,
geographical location and type of product or service provided. Basedon the risk assessment from the quick scan, subsequent actions are
determined, such as adherence to our sourcing framework or in caseof higher risk, the tool may determine the need for an EcoVadis
assessment. In 2021, 519 quick scans were initiated. The goal is tofurther roll out the quick scan to more teams worldwide in the future.
If the quick scan analysis determines a need for further investigation,
sustainability performance of specific suppliers is then assessed by
EcoVadis across four themes: environment; labor and Human Rights;
ethics; and sustainable procurement. 124 assessment scores weremade available to our teams in 2021, including the requests from theprocurement team in Brazil. 440 scores have been received since thestart of our collaboration with EcoVadis. This represents the numberof unique suppliers that have been assessed and does not consider
the regular re-assessments of suppliers.
In 2021, 83.9% of the assessed suppliers reached a score of 45 or
higher (EcoVadis rating of bronze medal or higher), meaning they
actively engage in Corporate Social Responsibility. The score is aweighted average of the 4 theme scores. Only two of the scores
received in 2021 indicates a “high risk” and mitigation actions were
put in place.

100

1 The overall score is a weighted average of the 4 theme scores
1

The indicators presented are based on 2021 data from our Procurement & Transportation teams in Belgium and Germany, Poland and Finland. EcoVadis, a well-known collaborative platform providing Supplier Sustainability Ratings, is also used by the local procurement
team in Brazil.

Umicore Strategy Performance Leadership Statements About Glossary BackcoverBattery materials
Sustainability of the battery supply chain includes the conditions
under which raw materials are extracted and processed, which is
why Umicore is committed to responsible sourcing of our battery
materials. While Umicore has had a dedicated policy for cobalt inplace for the last decade, Umicore also implements due diligencein the supply of other raw materials for batteries, e.g., nickel andlithium. The approach is directly inspired by our experience withcobalt and follows the basic steps of the Sustainable Procurement
Framework for Cobalt. For over a century Umicore has been aworld leader in cobalt products, used in many applications, fromtooling to rechargeable batteries for electric cars. Some reserves ofcobalt ore are in conflict-affected regions or areas with a high(er)risk for unethical practices such as forced labor, poor health andsafety conditions, child labor and corruption. Umicore is aware of
the sustainability risks that are linked to the sourcing of cobalt,
particularly in the Democratic Republic of Congo. Often, artisanaland small-scale mining (ASM) activities are linked to issues suchas Human Rights abuses, child labor, poor occupational healthand safety conditions. In 2004 Umicore decided to exclude cobalt
obtained from ASM from its supply chain due to its high risks.
Today, Umicore still does not source any ASM materials, however,
we support several initiatives that look into improving conditions of
ASM to attain sufficiently high sustainability standards, as well as
schooling for children and alternative livelihoods.
For us, sustainable procurement of cobalt means considering the
economic, environmental and social performance of our suppliers in
the purchase of materials, as well as the social and environmental
impact of the supply. To source cobalt, in 2012 we implemented apioneering
Sustainable Procurement Framework for Cobalt andin 2016, were the first to obtain external validation for our ethicalprocurement and due diligence approach in this area through anannual third-party audit (reported in ourannual compliancereport). The Framework is aligned with the OECD Due Diligence
Guidance for Responsible Supply Chains of Minerals from Conflict­
Affected and High-Risk Areas, but extends beyond the risks describedin Annex II to cover aspects including environmental impact andhealth & safety.

To ensure the traceability of materials in our supply chain, we carryout a detailed risk assessment of our suppliers, which could include
questionnaires, background screening, onsite visits, and if required,enhanced engagement and developing mitigation programs withthe suppliers. A dedicated cobalt sourcing committee, referred toas the Approval Committee, is responsible for the principles andguidelines in the framework and has overall control and decision­
making power. The Approval Committee includes a member of
the Umicore management board and the senior management of
Sustainability and Supply. For more on Umicore’s efforts to support
the development of traceability projects across the industry, see
Battery Passport and
Re|Source.
Umicore’s due diligence practices in terms of our cobalt supply
chain are also reported against the Cobalt Industry Responsible
Assessment Framework (CIRAF), a management framework for risk
assessment and mitigation, aiming at ensuring responsible cobalt
production and sourcing and launched by the Cobalt Institute in2019. Umicore follows the recommendations of level three of CIRAF,
meaning Umicore has identified material risks in its cobalt supply
chain, has a policy and due diligence management system to addresshuman right risks and all other material risks for its cobalt supply
chain, and that Umicore also reports on efforts to address those risks.
According to CIRAF, the following risk areas are material for Umicore’s
cobalt supply: (1) Air-water-soil pollution & energy efficiency; (2)Occupational Health & Safety and working conditions; (3) Conflict& financial crime; (4) Human Rights abuses; (5) Worst forms ofchild labor; (6) Biodiversity; (7) Artisanal Mining; (8) Livelihoods;(9) Resettlement. Umicore has due diligence management systems
for all risk areas through its Sustainable Procurement Framework
for cobalt, which means that the policies and performance of all
suppliers are screened and reviewed.

Conflict minerals: tin, tantalum, tungsten, gold
In some regions of the world, exploitation of natural resources is used
to fund conflict or can be associated with violations of Human Rights.
To prevent materials that are tainted in this way from entering its
supply chain, Umicore has adopted a
Responsible global supply
chain of minerals from conflict-affected and high risk areas policy,

Umicore Integrated Annual Report 2021

67

which is based on the OECD guidelines. In the area of precious metals,
this policy is complemented with specific responsible sourcing
certification programs (see Responsible Operations).
Business units purchasing conflict minerals – tin, tantalum, tungsten
and gold (also known as 3TG) – to manufacture their products, use theConflict Mineral Reporting Template from the Responsible Minerals
Initiative for their due diligence on the purchased raw materials.
On 1 January 2021, the Conflict Minerals Regulation came into force
across the EU, with similar scope to the US Dodd Frank Act of 2012. The
new law aims to regulate the trade of conflict minerals by ensuringthat international responsible sourcing standards are met. Umicore
supply risk management is fully in line with the requirements of both
the Conflict Minerals Regulation and the US Dodd Frank Act.

Responsible Operations
In addition to our policies on responsible sourcing and related due
diligence approaches, Umicore also pursues responsible sourcing
certification wherever appropriate, to highlight our best practices andto provide the necessary documentation to the increasing number ofcustomers seeking assurance on our products. The Umicore internal“Metals and Minerals” working group streamlines and optimizes theefforts required for this increasing customer demand through sharingof best practices.
Umicore sites undergo audit and certification for the London Bullion
Market Association (LBMA), the Responsible Jewelry Council (RJC) and
the Responsible Minerals Initiative (RMI).
In 2021, Umicore participated in the review process of the LBMA
Responsible Gold Guidance (version 9) which will be applicable from
1 January 2022. This review further expands the risk assessment
for Environmental, Social and Governance (ESG) issues for all the
relevant materials. In 2021 Umicore concluded its gap analysis todemonstrate compliance with the reviewed responsible sourcing
requirements for LBMA Good Delivery List refiners.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverGold & silver
The London Bullion Market Association (LBMA) manages theaccreditation process for all Good Delivery listed refiners for goldand silver. The Responsible Jewelry Council’s (RJC) Chain of Custody(CoC) Standard is applicable to gold and platinum group metals(platinum, palladium and rhodium). Both the RJC Chain of Custodyand LBMA Good Delivery accreditations qualify the accredited sites
for listing in the Responsible Minerals Initiative (RMI) conformant
smelters and refiners.
In 2021, Umicore continued to ensure that operations with gold
production are certified as conflict-free. Umicore operations in
Hoboken and Pforzheim are certified as conflict-free smelters forgold by the LBMA for the year 2020 and will be audited for 2021 laterin 2022. The LBMA also provides certification for responsible silver
and the sites of Hoboken, Pforzheim and Bangkok are accredited

LBMA Gold1
Bangkok
Hoboken

LBMA Silver2

refiners by the LBMA for 2020 and will be audited for 2021 later in
2022. The Jewelry & Industrial Metals operations in Pforzheim, Vienna
and Bangkok are certified as part of the RJC Chain of Custody programfor recycled gold and silver. Through mutual recognition of otherrelevant industry initiatives, the sites in Hoboken, Pforzheim, Vienna
and Bangkok are on the RMI Conformant Gold Refiners list.

Accreditation Certificate covering the year 2020. The Jewelry &Industrial Metals operations in Pforzheim, Vienna and Bangkok are
certified as part of the RJC Chain of Custody program for recycled
platinum, palladium and/or rhodium.

Our customers are increasingly requesting such guarantees andwe provide them with the necessary documentation to attest theconflict-free status of our products.

In May 2019, Umicore Olen was approved as the first Responsible
Minerals Initiative-conformant cobalt refinery worldwide. Umicore’s
cobalt operations in Kokkola (Finland) were the second recognizedrefinery. The refineries must undergo a yearly certification process.
Given the COVID-19 context in 2020-2021, the audits have had tobe postponed but the certification process is ongoing and expected
to be completed in Q1 2022. Both sites remain on the list of RMI
compliant refiners.

Platinum, palladium & rhodium
Since 2020, Umicore is being reviewed by the LBMA multi-metal
audit for compliance against the responsible gold and silver guidance(see above) and responsible platinum and palladium guidance. In
2021 the Hoboken site received a Platinum and Palladium Sponge

LPPM Platinum sponge3

LPPM Palladium sponge4

X

X

X
X

X

CobaltRJC Chain of Custody
Recycled gold, silver, platinum, palladium and/or rhodium5

RMI-Conformant Cobalt Refiners6

X

RMI-Conformant Gold refiners7
X
X

KokkolaX

Olen
Pforzheim

68

X
X

X

Vienna1 lbma.org.uk/good-delivery-list-refiners-gold-current
2 lbma.org.uk/good-delivery-list-refiners-silver-current
3 https://www.lppm.com/sponge-accreditation/sponge-platinum-list/
4 https://www.lppm.com/sponge-accreditation/sponge-palladium-list/
5 responsiblejewellery.com
6 responsiblemineralsinitiative.org/responsible-minerals-assurance-process/smelter-refiner-lists/cobalt-refiners-list/conformant-cobalt-refiners
7 responsiblemineralsinitiative.org/gold-refiners-list

X

X

X

X

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

69

Giving Back To Society
At corporate level, the emphasis is on projects with an international
scope. Priority is given to initiatives with a clear educational
component which link with sustainable development (social,environmental and/or technological).

Knowledge is the key to building a better world
Educational initiatives are particularly relevant for Umicore as atechnology-oriented business and we have been working with
UNICEF to reach those children who are in most need. 2021
marked the 10th anniversary of that partnership. We celebrated
this milestone by supporting two new projects:

Umicore seeks to contribute to the well­being of the communities in which it
operates and to be a responsible corporationand good corporate neighbor.

1. UNICEF Upshift empowers young people in India by developing
the skills they need to enter a labor market characterized by highunemployment rates
2. In Indonesia, we support a project organizing bootcamps andskill sessions around STEM education for girls. STEM – science,technology, engineering and mathematics – are important skills
for employment and empowerment.
For more, see

We believe that empowering Umicore sites for local sponsorshipand donation initiatives will make a positive difference in thecommunities in which we operate. Umicore’s support may include
contributions in kind and releasing staff to work on community­
related projects.
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. The causes we support at site level are often
dear to our staff members. In 2021, colleagues from our site in
Hoboken (Belgium) together raised € 5,000 to De Warmste Week,a yearly Belgian solidarity event in the lead-up to Christmas, while
our colleagues in Korea provided medical support and lunchboxes forchildren and the elderly.

UNICEF x Umicore | Umicore

Entrepreneurship as a force for good
Umicore is a founding member ofEntrepreneurs pourEntrepreneurs/ Ondernemers voor Ondernemers which pairs
corporate donors with development charities that focus onpromoting entrepreneurship in the developing world. Over the years,
Umicore and Entrepreneurs for Entrepreneurs have supported work incountries including Bolivia, Cambodia, Congo, Ecuador, Haiti, Mali andTogo. In 2021, we extended our support to projects in The Philippines,
DR Congo and Madagascar.

Disaster relief

As a global company, natural disasters are never far from ourdoorstep wherever they strike around the world. In our efforts toprovide relief to local communities, we mainly support
Doctors
Without Borders. In 2021, we also made donations to:● the Belgian and German Red Cross following the summer floods;● projects in Haiti, following the earthquake in August;● projects in Congo, following the volcano eruption in the areaof Goma;● projects in India and Brazil, as COVID hit communities particularly
hard in these countries.

Planting trees
For the internal launch of our Let’s Go for Zero strategy, we promised
to plant a tree for every attendant. In total Umicore employees
contributed to planting 7,500 trees as part of theGreat Green
Wall Initiative in Ghana and Mali.

European Hackathon for Youth
In 2021, we supported a hackathon for Youth, focused on the themeof diversity and inclusion. In addition, 5 young graduates employedat Umicore joined the hackathon. They learned new skills and helped
NGOs. For Umicore, supporting a hackathon means offering our
young talents a unique learning experience, while contributing to ourglobal donation ambitions to give back to society and go for zeroinequality. For more, seeStudents and Umicore join forces tohelp a charity | Umicore
In 2021, Umicore contributed a total of € 1.6 million in donations.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover70

Society key figures
Millions of Euros
Raw materials cost (excluding water, gas & electricity)

2017

2018

2019

2020

2021

10324

11,75915,53918,72021,500

Water, gas & electricity cost

83.3

96

100

100

144

Depreciation & impairments

203

227

307

363

339

Other costs (net)

470

516

434

533

532

Total taxes

95

133

117

79

202

Creditors

20

33

41

58

52

Minority Shareholders

1

11

11

5

8

154

181

180

60

181

Shareholders (dividends only)
Charitable donations

1.2

1.4

1.5

1.5

1.6

Employee compensation & benefits

701

731

776

799

853

Umicore Integrated Annual Report 2021

Sustainable Products & Services

71Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover79%
OF REVENUES FROM
CLEAN MOBILITY& RECYCLING

Our primary focus is on activities thatprovide solutions for clean mobility andresource scarcity
Catalysis
Reducing harmful emissions

12,500CUSTOMERS IN 101 COUNTRIES

Beyond this customer-oriented approach, we provide close
collaboration across all regions to deliver a sustainable and securesupply of high-quality products and services. Our high level ofinvestment in R&D ensures advanced and efficient production andprocess technologies that enable our customers to meet the moststringent sustainability demands and ambitions. Umicore’s diverse
workforce brings global perspectives to our innovation and works
in proximity to our international customer markets. Our ambition toachieve net zero GHG emissions by 2035 will enable Umicore to offer
products with a reduced carbon footprint to our customers.
For more Umicore products and services, visit:
UMICORE.COM/INDUSTRIESEnergy & Surface Technologies
Powering the future

Recycling
Giving new life to used metals

Umicore’s performance culminates in the products and services
and the integrated value we offer society: delivering solutions
for a cleaner environment, increasing the competencies of ouremployees, raising the standards in our supply chain and creating
financial value for our shareholders as well as sustainable value forour stakeholders.
Umicore materials can be found in a variety of applications thatdeliver solutions for cleaner air and increased e-mobility while ourunique closed-loop services turn waste metals into a resource. We
provide advanced products that are built on our customers’ specificperformance, environmental and sustainable sourcing needs.

172

https://www.iso.org/standard/38498.html#:~:text=ISO%2014044%3A2006%20specifies%20requirements,and%20critical%20review%20of%20theMeasuring Impact
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. These insights
can then be leveraged to improve the footprint of our products
and services. Umicore’s business units work with corporate EHS onlife cycle assessments (LCAs) to identify the environmental impactof their products and services and set a baseline against which
improvements can be measured. An LCA is a standardized, science­
based tool used to define the degree of environmental impactof a given system or product1. LCAs take into account all phasesof the product’s life cycle, including direct and indirect emissions,
examine inputs and outputs for each phase, and convert them into an
environmental impact measurement.
Building on the opportunities identified in such assessments, weleverage our unique combination of materials chemistry, energy
mix and materials mix (raw and recycled) to improve our overall
environmental impact and to contribute to lower-carbon mobility.
Umicore will continue to develop selective products and services
that have specific sustainability benefits and answer the growing
sustainability needs of our customers. We are already working
closely with customers and have started engaging with suppliers to
reduce the upstream footprint of our products.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Among the impact categories calculated in an LCA, the impactof greenhouse gas emissions to climate change, expressed in
CO2equivalent, is prioritized because of the urgent need to tackle
global warming. Until Umicore reaches the Net Zero greenhouse gas
emissions target, our industrial operations will continue to emit.
However, our products and recycling services have a positive impact
in terms of greenhouse gas emissions in the value chain. First andforemost, as a key element of our closed-loop business model, therecovery of metals from secondary sources provides raw materials
with a lower carbon footprint to society; and secondly, rechargeable
battery materials accelerate the transition to low-carbon mobility.
In terms of avoided emissions (sometimes referred to as ‘scope 4’),
Umicore examined in 2021 the activities linked to cathode materials
for electric mobility and to recycling key raw materials. Basedon those activities, we have estimated total avoided emissions
from 2016 through 2020. In our calculations, a portion of ourestimation was not allocated specifically to Umicore, to reflect theestimated shared contribution of the complete value chain. For
more details about the assumptions considered for our calculations,
see GHG emissions in the Environmental Statements. Based onthese assumptions, calculations, and a limited set of activities,
Umicore’s electric mobility products and recycling services avoided an
estimated 35 million tonnes CO2equivalent from 2016 through 2020.
For electric mobility, we compared rechargeable batteries for electricvehicles with a medium passenger car with an internal combustion
engine running on diesel or gasoline, considering the European split
between diesel and gasoline from 2016 through 2020. Approximately
24 million tonnes of greenhouse gas emissions were avoided over 5
years - taking into account the production of the cathode materials,
their processing into batteries, the use of the batteries in full electricvehicles and end-of-life recycling.
For our recycling activity, we compared Umicore’s secondary
production with the primary production of an equivalent tonnage ofeach metal considered. The avoided emissions are close to 11 million
tonnes of greenhouse emissions from 2016 through 2020.

Given the uncertainties involved in the assumptions, the figures
should only be considered as estimates of the potential benefit forsociety. We aim to refine such calculations in the future, in particularby engaging with our suppliers and by working in close collaboration
with our customers as part of our commitment to develop a target forour scope 3 emissions.

Product StewardshipWorldwide, Umicore ensures regulatory compliance for the products
it puts on the market. Our business might be impacted by changes
to existing product-related legislation and by the introduction of
new legislation. In terms of REACH legislation and newly proposed
concepts such as the Chemical Strategy on Sustainability in the
EU, Umicore closely monitors all changes in regulations, such as
the ongoing revision of REACH and CLP, since this may affect its
REACH implementation strategy. Umicore actively supported theengagement of the metals sector with the European Chemicals
Agency (ECHA) in the metals/inorganics sectorial approach (MISA)
which officially terminated at the end of 2021.
In 2021, we submitted 16 additional substances for registration
under REACH due to new business developments. As part ofregular maintenance, we updated 96 REACH dossiers for reasons
including changing the tonnage band, replying to ECHA requests
and including new information. In Korea, Umicore successfully
achieved the first Korea REACH (K-REACH) registration deadline at theend of 2021 with the registration of 11 substances including Lead
Registrant roles. Umicore is preparing for the implementation ofinternational chemicals regulations such as upcoming notifications
and registrations for India. Umicore has successfully submitted theDownstream User Import Notifications (DUINs) for UK REACH and ispreparing for the next steps of inquiries.
Beyond compliance, Umicore has a systematic approach to thehazard assessment of its portfolio of low volume chemicals, usinga hierarchy of sources, from in-house data to publicly available
information. The outcomes of the hazard assessments are stored in
Safety Data Sheets (SDS) and shared directly with Umicore customers

Umicore Integrated Annual Report 2021

73

and partners. For more, see Umicore’s Product stewardship approach,here.

Sustainable Value Chain
To be a preferred sustainable supplier, we work directlywith our customers to meet their environmental requirements
and disclose our own performance and ambitions. This involves
collaborating with our customers to develop, produce and recycle
metal-related materials for material-based solutions tailored totheir needs. 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 gauge customer
satisfaction periodically.
In recent years, some customers have opted for a third-party
sustainable supplier assessment. For these customers, Umicore
discloses to the
CDP.
For the second time, Umicore received the Platinum Medal in
Corporate Social Responsibility from EcoVadis in 2021. EcoVadis
is a provider of business sustainability ratings, intelligence andcollaborative performance improvement tools for global supply
chains. It places us among the top 1% of our industry peers in
the EcoVadis global network of over 65,000 rated companies. The
Umicore Group was re-evaluated by EcoVadis and was awarded
aPlatinum Medal in Corporate Social Responsibility (CSR), with ascore of 75%, compared to 73% in 2020, demonstrating Umicore’s
continued commitment and efforts for an improved performance inall four sustainability themes (environment, labor and Human Rights,
ethics and sustainability procurement). Umicore has been assessedby EcoVadis since 2013. To see Umicore's EcoVadis CSR scorecard, see:
ECOVADIS SCORECARD.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Revenues from clean mobility & recycling

EU taxonomy

CLEAN MOBILITY & RECYCLING REVENUESThe European Union created an action plan on the financing ofsustainable growth, aimed to redirect capital flows to sustainableeconomic activities. This is part of the efforts to reach the objectivesof the European Green Deal and make Europe climate-neutral
by 2050.

%

67

2017

72

2018

75

2019

79

79

2020

2021

Umicore’s primary focus in terms of sustainable products and services
is to leverage activities that provide solutions for clean mobility andresource scarcity. For many years, Umicore has been emphasizing
this focus by disclosing the portion of revenues we gain from clean
mobility materials and recycling.
In 2021, 78,8% of Group revenues (excluding metals) were generated
from activities that deliver products or services that are directly
linked to clean mobility or recycling. We include the productionof automotive catalysts, fuel cell catalysts and battery materials
for electrified vehicles, which all contribute to cleaner mobility. For
recycling, we consider our refining activities, thereby taking into
account the portion of secondary materials processed. We are at thesame level as in 20201and have increased significantly from 65% in
2016, when we began tracking revenues in this way.
Many of the materials and services making up the remaining 21%
of revenues provide answers to specific societal needs such as
improved connectivity (materials for high quality glass and displays)
or reduced energy consumption (materials for use in energy-efficient
lighting such as LEDs).

In 2021, the European Union introduced the EU Taxonomy, which
is a classification system establishing a list of economic activities
qualifying as sustainable. Umicore has assessed the complianceof its products and services with
Taxonomy Regulation (EU)2020/852. For 2021, we are reporting on the eligibility of our
products and services to two of the six environmental objectives:
Climate Change mitigation and Climate Change adaptation. The
remaining four environmental objectives are yet to be publishedby the European Union in 2022 and therefore this year’s reportingreflects only a piece of Umicore’s eligibility.

Assessment results
Based on the defined activities in the Taxonomy Regulation, we
reviewed which Umicore products and services contribute to the EU
Taxonomy objectives of Climate Change mitigation and Climate
Change adaptation. In this review, we took into account our
products and services, not our overall industrial activities. Umicore’s
two eligible activities “Manufacturing of rechargeable batteries”
and “Manufacturing of equipment for the production and use ofhydrogen” contribute to the EU Taxonomy objective of Climate
Change Mitigation and not Climate Change Adaptation. We have
not yet assessed the alignment of our eligible activities, but we will
include this in next year’s integrated annual report.

Manufacturing of rechargeable batteries
Umicore has activities that match the EU definition of theactivity: 'Manufacturing of rechargeable batteries, battery packs and174

accumulators for transport, stationary and off-grid energy storageand other industrial applications. This includes the manufacturingof respective components (battery active materials, battery cells,
casings and electronic components) and recycling of end-of­life batteries.’
Umicore supplies battery active materials for lithium-ion
rechargeable batteries used in electric vehicles, energy storage
systems and portable electronics. This is an enabling activity forbattery manufacturing. The manufacturing of battery materials
for the portable electronics market has not been considered as
an eligible activity, only the cathode materials used for electricvehicles and energy storage systems have been considered in theeligibility assessment.
Umicore also recycles, refines, transforms and sells cobalt andnickel specialty chemicals. This is an activity for a wide range ofapplications, but only the cobalt and nickel products sales flowing
into the battery value chain for electric vehicles have been taken into
account in the eligibility assessment. We excluded any internal salesof cobalt and nickel between Umicore business units.
Umicore’s activity contributes to the Climate Change Mitigation
objective because batteries for electric vehicles and energy
storage systems are an alternative to technologies emitting
greenhouse gases.

Manufacturing of equipment for the production
and use of hydrogen
Umicore has activities that are eligible for the EU taxonomy defined
activity: ‘Manufacture of equipment for the production and useof hydrogen’.
Umicore produces proton exchange membrane fuel cell catalysts forhydrogen power generation in vehicles. Fuel cell-powered vehicles
combine the best of both worlds: long driving ranges and shortrefueling times combined with zero use-phase emissions. These

This indicator is an aggregate number and due to an oversight, we underestimated in 2020. As a resut, 79% of our revenues were from clean mobility and recycling, not 77% as previously stated in 2020.

Umicore Strategy Performance Leadership Statements About Glossary Backcoveradvantages make the fuel cell-powered automotive particularly
attractive in long-distance or energy-intensive haulage applications.
Umicore’s activity is an enabling activity for the production and useof hydrogen. For this purpose, we only took the fuel cells businessline into account and disaggregated this from the stationary catalysts
business line. This activity contributes to Climate Change Mitigation
because fuel cell catalysts reduce dependency on fossil fuels.

EU TAXONOMY-ELIGIBLE ACTIVITIES
Turnover1

CAPEX2OPEX3EU Taxonomy "Climate Change Mitigation"­
eligible activities total (in thousand EUR)4

1,200,634

212,150

55,217EU Taxonomy "Climate Change Mitigation"­
eligible economic activities (in %) 4

4.99%

48.00%

17.49%EU Taxonomy non-eligible activities total (inthousand EUR)4

22,853,805 229,849

260,465

EU Taxonomy "Climate Change Mitigation" non­
95.01%
eligible economic activities (in %) 4

52.00%of the EU Taxonomy. We anticipate that our business activities inCatalysis and Recycling will be most relevant for the four additional
environmental objectives to be published by the EU in 2022.
The main purpose of our Catalysis activities is to reduce toxic
pollution in the air rather than the reduction of greenhouse gas
emissions. As we assume that the contribution of our Catalysis
activities will be most relevant to the EU Taxonomy objective ofPrevention of Pollution, we have chosen not to put it forward for the
Climate Change Mitigation objective in 2021.
Umicore’s Recycling business supports the transition of the use of
primary resources towards recycling, which is less carbon intensive.
As we assume that the contribution of our Recycling business will bemost relevant to the objective of Transition to a Circular Economy, we
have chosen not to put it forward for the Climate Change Mitigation
objective in 2021.

82.51%

1 Umicore’s turnover includes metal prices which are subject to market fluctuations and thus ourreporting on the EU Taxonomy will include those fluctuations
2 We used the CAPEX definition as defined by the EU Taxonomy, which is different thanUmicore’s definitions of CAPEX. More information on these differences can read in the accounting
policy below
3 We used the OPEX definition as defined by the EU Taxonomy, which is different than Umicore’s
definitions of OPEX. More information on these differences can read in the accounting policy below.
4 Umicore’s activities contribute to the EU Taxonomy Climate Change Mitigation objective and not to
the EU Taxonomy Climate Change Adaptation objective.

Assessment process
For the assessment of Umicore’s EU Taxonomy compliance, we
engaged the external expertise of PwC. They assisted Umicore in theanalysis of the EU Taxonomy definitions and criteria. In collaboration
with the business units, we identified which Umicore activities are
eligible for the EU Taxonomy’s Climate Change Mitigation and Climate
Change Adaptation objectives. A key focus of the assessment was to
avoid double counting, which we mitigated in two ways. On the one
hand, we excluded all intercompany transactions from the exercise
and we only took the external figure for a specific business unit
or business line into account. On the other hand, some Umicore
activities could be eligible for several environmental objectives

Accounting policy
The IFRS imposes the reporting of turnover in the segment
information (note F7 of the financial statements) [hyperlink].
Turnover can be defined as the sum of all outgoing sales invoices andcontains the metal sales. When metal prices rise, turnover increases
but this rise is not the result of increased business activity, nor willit automatically lead to improved profitability. The IFRS turnover
published by Umicore has been analyzed and the Group concluded
that the definition is in line with the Turnover KPI requested for EU
taxonomy purpose. To avoid double counting, only external turnoverhas been considered for the EU Taxonomy exercise.
For the KPI related to capital expenditures (CAPEX), the EU
Taxonomy required inclusion of all the additions to tangible andintangible assets during the financial year considered, before
depreciation, amortizations or impairments. It also covers thetangible and intangible assets resulting from business combinations
and the leases that lead to the recognition of a right-of-use asset as
per IFRS 16. The capitalized expenditure definition at Umicore (seeGlossary) is more restrictive than the EU Taxonomy definition as it

Umicore Integrated Annual Report 2021

75

concerns capitalized investments in tangible and intangible assets,
excluding capitalized R&D costs. Therefore, capitalized R&D costs,
new capitalized leases and the business combinations represent
differences between the CAPEX KPI presented in the Umicore
financial statements and the CAPEX KPI as defined by the EU
Taxonomy. Those additions are however available in the financial
statements under notes F8, F14 and F16 . To avoid double counting,
only external capital expenditure has been considered for the EU
Taxonomy exercise.
Umicore is not yet disclosing for 2021 a capital expenditureinvestment plan (capex Plan) to obtain alignment of eligible
activities, because the screening for alignment has not been
finalized. Umicore intends to disclose its investment plan in theannual report for 2022.
For the KPI related to operating expenditures (OPEX), theEU Taxonomy required inclusion of a limited number of items
compared with the number of items included in the total operating
expenditures disclosed by Umicore in its financial statements (seenote F9) of the financial statements. The EU Taxonomy only includes
direct non-capitalized costs related to R&D, building renovation
measures, short-term leases, maintenance and repair and any otherdirect expenditures relating to day-to-day servicing of assets ofproperty, plant and equipment by the undertaking or third party towhom activities are outsourced that are necessary to ensure thecontinued and effective functioning of such assets. To avoid double
counting, only the costs initiated in the originating eligible activity
have been considered.
The assessment of Umicore’s eligible activities excludes Umicore’s
joint ventures and associated companies.
Finally note that the allocation to the numerator for the threerequired EU taxonomy KPIs was based on Umicore’s internal financial
reporting that identifies these KPIs per business line or per specificmarket. The respective business unit controllers have agreed upon
the eligibility of their activities and reported the data centrally.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Umicore Integrated Annual Report 2021

76

Maximizing positive impact

Umicore supports the United Nations
Sustainable Development Goals (SDGs)
through innovative products and practices
that minimize negative impacts, protect theenvironment, promote social progress andsupport economic growth.
Umicore also supports the ten Principlesof the United Nations Global Compact on
Human Rights, labor, environment and anti­
corruption. We are committed to integratingthese principles in the strategy, culture andday-to-day operations of our company - andto engaging in collaborative projects which
advance the Sustainable Development Goals.

To support sustainable consumption and production patterns(SDG12), we deliver technologies that provide resource efficiency
and sustainability throughout industrial supply chains. Our recycling
services – processing over 200 types of raw metal-containing
materials including industrial residues and “end-of-life" materials– deliver sustainable sourcing solutions to our customers. Our
pioneering role in implementing sustainable sourcing practices in the
supply chain has raised the bar for the industry and thus reduces
waste generation on a large scale. At the same time, we continue
to innovate to minimize negative impacts, for example by limiting
emissions and reducing waste in our own industrial operations.

Through our electromobility technologies, Umicore is contributing toensure access to affordable, reliable, sustainable and modern
energy for all (SDG7). We are a leading producer of cathodematerials for lithium-ion batteries, which are key in determining
the power and energy density of rechargeable batteries, inorder to maximize driving distance of electrified vehicles. This
improves efficiency for downstream customers who manufacture
the electrified vehicles as well as for users of cars and heavy-duty
vehicles. Our hydrogen cell technologies are used as a new chemical
carrier for energy, which could become the major energy carrier inthe future and can be used for the decarbonization of industry.

Umicore builds resilient infrastructure, promotes inclusive andsustainable industrialization and fosters innovation (SDG9). Our
strategic focus tackles society’s resource scarcity and environmental
concerns. Our closed-loop business model supports the circular
economy and our clean mobility solutions enable our customers
to reduce negative impacts on the environment. We are a leading
producer of catalysts and catalytic filters used in emission abatement
systems for light- and heavy-duty vehicles, on road and off road.
Our catalysts and particulate filters convert pollutant emissions
into harmless gases and trap the particulate matter, enabling ourcustomers to meet present and future environmental standards.
Umicore’s products have prevented hundreds of millions of tonnesof harmful pollutants from being emitted into the air. Our continued
investment in R&D advances technological capabilities. Umicore
remains committed to open innovation; a dedicated team facilitatescollaboration with dozens of research institutes, start-ups anduniversities worldwide.

We play an important role in the energy transition with our products
and continuously work to improve energy efficiency and increase
renewable energy use in our own processes.
As mentioned in our contribution to SDGs 7 and 9, many of our
products help to reduce greenhouse gas emissions and contributeas such to combat climate change (SDG13). Our electromobility
solutions support the reduction of reliance on fossil fuels. The natureof our closed-loop business model avoids greenhouse gas emissions
by using materials from non-primary sources. Through its operations,Umicore emits greenhouse gases. To minimize that negative impact,
we have integrated the goal of net zero GHG emissions by 2035
in our Let's Go for Zero strategy and are pursuing SBTi validation
for these targets. Furthermore, Umicore is also engaging in public­
private partnerships to improve education and awareness aboutclimate change mitigation, for example concerning clean energy
and mobility.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

The Zero harm pillar of our ‘Let’s go for zero’ strategy is a significant
challenge for an industrial player, but Umicore is prioritizing thewellbeing and safety of our employees and neighbors and isminimizing the negative impact of its operations. Intensified efforts
in favor of occupational health and safety and overall wellbeingof our employees promote well-being and healthy lives (SDG3)
as does safeguarding the safety of our products. Our catalysts also
contribute to SDG3 by preventing harmful pollution and contributing
to cleaner air for people to breathe.
To ensure availability and sustainable management of water(SDG6), we are actively preventing water pollution from our
production sites and are continuously reducing our water usage
in our operations. Umicore recognizes that our operations can havea negative impact on the wellbeing of the communities in which
we operate. We work actively and on a daily basis to minimize
the negative environmental impact our operations may cause andto maximize job creation with the goal to make communities as
inclusive, safe, resilient and sustainable as possible (SDG11).

Decent work and economic growth (SDG8) are an important focus
for Umicore. Through job creation and thanks to our innovative andresource-efficient business model, Umicore contributes to the global
transition. Umicore respects the principle of collective bargaining
and is committed to fair wages and equal pay for work of equalvalue. We ensure a safe and secure working environment within ourorganization and ensure that Human Rights are respected within our
supply chain.

77

For more information on how Umicore's impact on the Sustainable
Development Goals was evaluated, see the Social Statements

To ensure gender equality (SDG5) and cultivate diversity of thought
within the company, Umicore strives to build an inclusive culture
and to increase the number of women among our employees andour management. Beyond the borders of our company, we promoteanti-discrimination against women and enforce equal opportunities
Globalin our supply chain, by asking suppliers to adhere to our
Sustainable Sourcing Policy.

Overview of the impact of Umicore's strategy, objectives, products and services on key SDGs
Wellbeing at work for all

Zero inequality andwellbeing at work for all

Clean
mobility solutions

Zero inequality, zero
harm and closed loop
business model

↑

↑

↑

↑

Closed loop business
Closed loop business model and Zero Harm, closed loop businessmodel and clean
clean mobility solutions
model and clean mobility solutions
mobility solutions↑

Closed loop business model andclean mobility solutions

↑

↑

↑

↓

↓

↓

MAXIMIZING POSITIVE IMPACT TO SOCIETYMINIMIZING OPERATIONAL IMPACTS↓↓

Minimizing all emissions, 25%diffuse emissions reduction
by 2025 and safeguarding
employee safety

Minimizing all emissions
and defining a water
use target

Minimizing all emissions, 25% Net Zero GHG emissions, minimizing
Net Zero GHG emissions,diffuse emissions reduction all emissions, 25% diffuse emissions minimizing all emissions, 25%
by 2025
reduction by 2025
diffuse emissions reduction by 2025

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover78

Key performance figures(in million € unless stated otherwise)

2017

2018

2019

2020

2021
3,963

Economic performance
Revenues (excluding metal)

2,915.6

3,271

3,361

3,239

Adjusted EBIT

410.3

514

509

536

971

Return on Capital Employed (ROCE) (in %)

15.1

15.4

12.6

12.1

22.2

R&D expenditure

175.2

196

211

223

245

Capital expenditure

365.3

478

553

403

389

Adjusted EPS (in €/share)

1.22

1.36

1.30

1.34

2.77

Gross dividend (in €/share)

0.70

0.75

0.375

0.75

0.80

Social and environmental performance
Revenues from clean mobility and recycling (in%)

67

72

75

79

79

1,299

1,432

1,614

1517.211623.99CO2e emissions (scope1)

364,139

417,140

389,101

330,619372,699CO2e emissions (scope2) - Market based (in tonne)

269,565

350,562

402,795

401,926

473,738CO2e emissions (scope2) - Location based (in tonne)

299,168

368,649

426,074

417,346

418,989

Energy consumption (in terajoules)

6,532

7,458

7,476

7,591

8,308

Workforce (fully consolidated companies)

9,769

10,420

11,152

10,85911,050Total donations, including staff freed time (in thousands of euro)

Lost Time Accidents (LTA)

51

61

90

49

73

LTA frequency rate

3.01

3.36

4.60

2.50

3.7

LTA severity rate

0.09

0.10

0.20

0.47

0.12

Exposure ratio 'all biomarkers aggregated' (in %)

2.7

2.8

1.8

2.0

1.5

Average number of training hours per employee

45.33

43.10

48.73

36.33

41.59

Voluntary leavers ratio

5.03

7.18

5.99

4.20

5.82

Umicore Integrated Annual Report 2021

Leadership
Governance

80

Supervisory Board

81

Management Board

86

Leadership Overview

90Management approach

92

Risks & Opportunities

9779

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Umicore Integrated Annual Report 2021

80

GovernanceSupervisory Board
Nomination &Remuneration
Committee

Audit
Committee

Management Board
People &Organization
Board

Digital &Operational
Excellence
Board

ESG Board

Technology& Innovation
Board

Agile Groups
Corporate divisions

i.e., ESG Committee
COVID SteerCo
Carbon SteerCo

Business Units

Risk
Management

The management board has set up four tactical boards that develop
The supervisory board is responsible for Umicore’s general policy
and strategy. It supervises the management board and is alsopart of the corporate strategy and monitor its implementation.
vested with specific, reserved powers, such as establishing the
They are each led by a member of the management board, withannual accounts, drafting the annual report and paying an interim
representatives from each business group, and managed by andividend. The supervisory board is assisted in its role by an audit
internal expert:
committee and a nomination & remuneration committee. In lightof the above, the supervisory board approves the strategic plans● People & Organization Board (managed by the SVP
and budgets submitted by the management board, determines the
Human Resources)
risk appetite of Umicore in order to achieve its strategic objectives,● Digital & Operational Excellence Board (managed by theand also ensures Umicore operates in accordance with goodSVP Digitalization)
governance/ESG principles. A more exhaustive list of the supervisory● ESG Board (managed by the ESG Director)● Technology & Innovation Board (managed by the SVP
board responsibilities can be found in appendix 3 to Umicore’s
corporate governance charter. The members’ biographies provide an Corporate R&D)
overview of the experience and diversity in the supervisory board.
Each tactical board can be supported by internal agile groups
The management board - led by the CEO - is responsible for(e.g. the ESG committee) to coordinate efforts, maximize
the management of the company, including proposing the overall
efficiency and mobilize expertise. For more information see
strategy of Umicore to the supervisory board, operational and day-to­Management Approach.
day management, screening and addressing the various risks andopportunities that Umicore may encounter in the short, medium orlong term, defining and applying Umicore’s ESG approach, and legal
representation of the company with respect to third parties. The
management board approves the strategies of individual business
units and corporate divisions and monitors their implementation.
Final accountability for all aspects of Umicore’s business andperformance lies with the management board.
An overview of the composition and experience of the management
board can be found in their biographies.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

81

Supervisory Board
From left to right: Géraldine Nolens, Mark Garrett, Mario Armero, Françoise Chombar, Koenraad Debackere, Ines Kolmsee, Thomas Leysen, Birgit Behrendt, Laurent Raets, Eric Meurice

Board diversity
TENUREINDEPENDENCE

0-2 years | 3
3-5 years | 2
6+ years | 4

GENDER

Independent | 6
Non-independent | 3

NATIONALITIESAustralia | 1

Belgium | 4

France | 1

Germany | 2

Spain | 1

Switzerland | 1

Male | 6
Female | 3

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover82

Thomas Leysen

Mario Armero

Françoise Chombar

ChairmanMemberIndependent member

Belgian, 61

Spanish, 63

Belgian, 59

Date appointed to board
10 May 2000 (date appointment Chair: 19 November 2008)

Date appointed to board
30 April 2020

Date appointed to board
26 April 2016

Education
Law – KU Leuven, Belgium

Education
Law – University Complutense of Madrid, Spain

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

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 memberof the Executive Committee, and successively managed several
industrial divisions.

Experience
Mario Armero started his professional career at the Armero Law
firm and 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, Mario Armero has been the Executive Vice Presidentof ANFAC, the Spanish Car manufacturers association.

External appointments
Chair, Mediahuis, a European newspaper publishing group - Chair,
Royal DSM

Chairman since
19 November 2008

External appointments
Advisor of Global Infrastructure Partners - Chairman of ENSO Independent Board member of Bankinter Consumer Finance - Vice­
Chairman of Culmia - Member of the CEDE Foundation (Spanish
Confederation of Executives)- Board member of non lucrative
association Junior Achievement

Chairman of the Nomination & Remuneration Committee since
19 November 2008

Member of the nomination & remuneration committee since
9 December 2020

Expiration of mandate
Annual General Meeting of 2024

Expiration of mandate
Annual General Meeting of 2023

Experience
Françoise Chombar is co-Founder and Chairwoman of the Boardof Directors of Melexis, a producer of smart sensor and driversemiconductors for automotive, industrial, durable consumer andhealth applications, where she served as Chief Executive Officer
from 2003 until August 2021. She officiated previously as planning
manager at Elmos GmbH and operations manager and director atseveral 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 Languages by the University of Ghent. In
2018, she received the title of Science Fellow by the VUB, University ofBrussels and in 2021 the first Medal of Honor, awarded by the Scienceand Technology Group of KU Leuven.
External appointments
Chairwoman of the Board of Directors, Melexis NV, Belgium Chairwoman, Flemish STEM Platform, an independent advisory groupto the government of Flanders - Independent Director, Soitec S.A.,
France - Chairwoman of the Board of Directors, BioRICS NV, Belgium
Expiration of mandate
Annual General Meeting of 2022
Member of the Nomination & Remuneration Committee since
26 April 2018

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

83

Koenraad Debackere

Mark Garrett

Ines Kolmsee

Independent member

Independent member

Independent member

Belgian, 60

Australian/Swiss, 59

German, 51

Date appointed to board
26 April 2018

Date appointed to board
28 April 2015

Date appointed to board
26 April 2011

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

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

Experience
Prof. Dr. Ir. Koenraad Debackere has been with KU Leuven since 1995,
where he teaches Technology & Innovation Management and Policy.
He has won numerous awards for his research, and in 2010 wasawarded a Francqui Lecture Chair in economics and business. From2005 through September 2020 he was the general manager of KU
Leuven and also a member of the Board of KU Leuven.
External appointments
Chairman & independent director, chairman of Nomination
Committee, chairman of Remuneration Committee, KBC GroupNV, Belgium,Member Board of Governors, RWTH Aachen
University, Germany
Expiration of mandate
Annual General Meeting of 2024
Member of the nomination & remuneration committee since
9 December 2020
Member of the Audit Committee since
26 April 2018

Experience
Mark Garrett has been Chief Executive Officer at Marquard & Bahls AG,
a Hamburg-based holding company investing in new energies, gas,chemicals and materials, 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, Chairman of the Executive Board, Marquard & Bahls AG,
Germany, Non-executive Chairman, Board of Directors, OMV AG
Expiration of mandate
Annual General Meeting of 2024
Member of the Nomination & Remuneration Committee since
29 July 2017

Experience
Ines Kolmsee was Chief Executive Officer of Services & Solutions at
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 and CTO at German utility
EWE AG and CFO at Arques Industries AG.
External appointments
Independent non-executive director, Prysmian S.p.A., Italy
Expiration of mandate
Annual General Meeting of 2023
Member of the Audit Committee since
26 April 2011
Chairman of the Audit Committee since
28 April 2015

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Birgit Behrendt

Eric Meurice

Laurent Raets

Independent member

Independent member

MemberGerman, 62

French, 65

Belgian, 42

Date appointed to board
29 april 2021

Date appointed to board
28 April 2015

Date appointed to board
25 April 2019

Education
Business Administration - Academy of Administration and Economics(Verwaltungs-und Wirtschaftsakademie – VWA), Germany

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
Birgit Behrendt had throughout her career various global leadership
positions at Ford Motor Company and was elected a company officer
and vice president Global Purchasing in 2013. From 2018 through2019, she was vice president Joint Ventures, Alliances & Commercial
Affairs. She is currently a Senior Advisor and Venture Partner at AP
Ventures LLP, London.
External appointments
Member Supervisory Boards: Thyssenkrupp AG, KION Group AG
and Ford Werke GmbH, Member of the Board of Directors,
Infinium Holdings, Inc., Member of the Administrative Board, Stulz
Verwaltungs GmbH, Member of the Advisory Council, Hydrogenious
LOHC Technologies GmbH.
Expiration of mandate
Annual General Meeting of 2024

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 2024

Experience
Laurent Raets joined Groupe Bruxelles Lambert (GBL) in 2006 andbecame partner in 2021. He began his career in 2002 as an M&A
consultant at Deloitte Corporate Finance, where he was involved inbuy and sell mandates, due diligence and valuation 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

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Liat Ben-Zur

Marc Van Sande

Géraldine Nolens

Independent member

Former board advisor, Formerly EVP Energy & Surface Technologies

American, 45

Belgian, 70

Board secretary,
Belgian, 50(see Management Board)

Date appointed to board
25 April 2017

Education
Physics – University of Antwerp, Belgium; Business Administration –Antwerp Management School, Belgium

Education
Electrical engineering – UC Davis, USA Business Administration – UCLA
Anderson, USA
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 wirelesstelecommunications company, and was cofounder and Chairwomanof the AllSeen Alliance, a consortium for an open source, common
language for the Internet of Things.
Expiration of mandate
Annual General Meeting of 2023

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.
Marc Van Sande retired on 31 March 2021.

Karel Vinck
Honorary Chairman

About the Supervisory board
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 of managing 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, talentattraction and retention and supply chain sustainability.
READ MORE ABOUT CORPORATE GOVERNANCE

Ms Ben-Zur reisgned as Supervisory Board member on 29 April 2021

85

Umicore Strategy Performance Leadership Statements About Glossary BackcoverManagement Board

From left to right: Ralph Kiessling, Bart Sap, Géraldine Nolens, Denis Goffaux, Filip Platteeuw, Mathias Miedreich, Marc Grynberg (former CEO), Frank Daufenbach

Umicore Integrated Annual Report 2021

86

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverMathias Miedreich

Filip Platteeuw

Géraldine Nolens

Chief Executive Officer

Chief Financial Officer

Chief Legal Counsel, Executive Vice-President

German, 46

Belgian, 49

Belgian, 50

Education
International Business Management - Erlangen-Nuremberg
Friedrich-Alexander University

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

Experience
Mathias Miedreich joined Umicore and was appointed Chief Executive
Officer in October 2021, after serving as Executive Vice-Presidentof the Clean Mobility division of Faurecia, a global automotive
supplier with a strong focus on sustainable mobility. Mathias started
his career in Strategy Consulting at KPMG and then moved to theautomotive industry, in which he accumulated more than 20 years ofexperience in various senior leadership roles in Europe and Asia.

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 thecopper and zinc smelting operations.

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

Prior to joining Faurecia in 2013 as their Vice President Strategy & New
Technologies for the Clean Mobility business, he worked at Siemens
and Continental.

Prior to Umicore, Filip worked for KBC Bank, taking up positions incorporate banking, equity market research and investment banking.

87

Experience
Géraldine Nolens was appointed Chief Counsel for the Group in 2009
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.

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Denis Goffaux

Ralph Kiessling

Bart Sap

Executive Vice-President, Recycling

Executive Vice-President, Energy Surface Technologies

Executive Vice-President, Catalysis

Belgian, 54

German, 56

Belgian, 43

Education
Mining Engineering – Université de Liège, Belgium

Education
PhD Chemical Engineering – University of Erlangen, Germany

Education
Commercial Science – Vlekho Brussels, Belgium

Experience
Denis Goffaux was appointed Executive Vice-President Energy &Surface Technologies in 2018. He took 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.

Experience
Ralph Kiessling was appointed Executive Vice-President Energy &Surface Technology on 1 March 2021. Before this he was Executive
Vice-President Catalysis since 1 February 2019, after serving as SeniorVice President Operations for Automotive Catalysts since 2015.

Experience
Bart Sap was appointed Executive Vice-President Catalysis on 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 andrefining operations, he became Senior Vice-President for Cobalt &Specialty Materials and Supply at the beginning of 2020.

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.

He previously occupied successive management functions in process
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.

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Frank Daufenbach

Marc Grynberg

An SteegenChief Strategy Officer

Former Chief Executive Officer

Former Chief Technology Officer

French, 43

Marc Grynberg was appointed Chief Executive Officer in November
2008 after heading the Automotive Catalysts business unit from 2006
to 2008, and serving as CFO of Umicore from 2000 until 2006.

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.

Education
Management - HEC Paris, France
Experience
Frank Daufenbach joined Umicore’s Management Board as Chief
Strategy Officer in December 2021. In this newly created role,
Frank will support the Management Board in their strategic choices,
both within and across Business Groups, as they are preparing
Umicore’s next growth phase as a leader in clean mobility materials
and recycling.
Frank brings strong international and automotive experience invarious strategy and operational roles, especially in clean mobility.
He previously worked at Faurecia, a leading global automotive
supplier with a strong focus on sustainable mobility, where heserved as Vice President Strategy and Marketing of the Clean Mobility
business group. His prior roles include those of consultant at Monitor
Deloitte, KPMG and Oliver Wyman.

He joined Umicore in 1996 as Group Controller. Prior to joining
Umicore, Marc worked for DuPont de Nemours in Brussels
and Geneva.
Marc Grynberg resigned on 31 October 2021.

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.
An Steegen resigned on 1 October 2021.

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Leadership overview
As of time of publication
Mathias Miedreich
Chief Executive Officer• Corporate R&D• Human Resources• Group Communications & Investor Relations• Lead Technology & Innovation Board• Lead People & Organization Board• South America

CarstenGerleman

SVP Umicore
South America

Célinevan Haute

SVP Human Resources

Evelien
Goovaerts

VP Group
Communications& Investor Relations

Yves
Van Rompaey

SVP Corporate Research& Developoment

Filip Platteeuw

Frank Daufenbach

Géraldine Nolens

Bart Sap

Ralph Kiessling

Denis GoffauxChief Financial Officer

Chief Strategy Officer

Chief Legal Counsel
Executive Vice-President

Executive Vice-President
Catalysis

Executive Vice-President
Energy & Surface Technologies

Executive Vice-President
Recycling• Finance• Corporate Development• Information Systems• Lead Digital & Operational
Excellence Board• Government Affairs• New Business Incubation &Digitalization• Lead Digital & Operational
Excellence Board• Legal• Environment, Health & Safety• Internal Audit• Procurement & Transportation• Corporate Security• Lead ESG Board• North America• Automotive Catalysis• Precious Metals Chemistry• Fuel Cell & Stationary
Catalysis• Rechargeable Battery Materials• Precious Metals Refining• Jewelry & Industrial Metals• Battery Recycling Solutions• Precious Metals Management• Metal Deposition Solutions• Electro-Optic Materials• Umicore Marketing Services• Japan• Cobalt & Specialty Materials• ChinaUmicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Filip Platteeuw

Alain Byl
VP Group
Treasurer
until 31/3/22

Benoît Stevens
VP Group
Accounting &Controlling

Flavia Leone
VP Group Tax

Patrick
Vermeulen
SVP Information
Systems

Frank Daufenbach

Kurt
Vandeputte
SVP Goverment
Affairs

ThomasJansseune
SVP New Business
Incubation &Digitalization

Géraldine Nolens

Bart Sap

Bart Smets
Head of Insurance

Geert Bens
VP Strategic
Projects

Olivier
Ghyssens
VP Corporate
Development

Jens
Blechschmidt
Head of Internal
Audit

Kristl Matton
Head of Corporate
Security

PierreHautfenne
VP Group
Treasurer
as of 1/4/22

Mark Caffarey
President
Umicore USA

Natalia
Agüeros-Macario
ESG Director

Lawrence Li
VP AC China

Pierrevan de Bruaene
SVP Environment,
Health & Safety

Sybolt Brouwer
VP Procurement& Transport

Masa MuramatsuManaging
Director AC JapanTom
Vandebosch
VP Legal

Enrico Cisco
VP Control & IT

Geert Olbrechts
SVP Research &Technology andSupply, AC

Denis Goffaux

Ben Gilliams
VP Operations& Technology
Refining

Bernard Tonnon
VP RBM Process
Technology &Engineering

AtsuyaHanazawa
President
Umicore Japan

Bernhard Fuchs
SVP Precious Metals
Management& UMS

David Fong
SVP Umicore
Greater China

Dong-joon Ihm
Executive
Chairman
Umicore Korea

Franz-JosefKron
SVP Jewelry &Industrial Metals

Johan
Ramharter
SVP Precious
Metals Refining

LotharMussmann
SVP ProductManagement, AC

Erik Brijs
VP Control & IT

FrankStreignart
SVP RBM
Operations

Kurt
Vandeputte
SVP Battery
Recycling Services

Thomas Engert
SVP Metal
Deposition
Solutions

Stephanie Dam
SVP AC Operations

Geon-Seog Son
VP RBM Research& Development

Ignacede Ruijter
SVP CSM

Wannes Peferoen
SVP Electro-Optic
Materials

Jörg von Roden
SVP Sales &Business
Development, RBM

Jundong Lu
SVP Asia for RBM

JensenJoakim Reimer
Verhelle
Thøgersen
SVP Precious Metals
SVP Fuel Cells &Chemistry
Stationary Catalysis

Wilfried Müller
SVP Global Sales& Marketing

Ralph Kiessling

91

Stephan Janis
VP Supply &Refining

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92

Management approach
General management
The Umicore Way is the cornerstone of everything we doat Umicore and is also the basis of our management approach. The
Umicore Way is supplemented by detailed company codes, setting
guidelines throughout the company. These codes include:● The
Code of Conduct , which contains a comprehensive
framework for ethical business practice;● The Umicore
Corporate Governance Charter , which sets out
our management philosophy and governance principles;● The Umicore
insider dealing code, which spells out
Umicore’s policy in respect of market abuse including
insider trading;● The Umicore
Global Sustainable Sourcing Policy which
outlines our commitment to align our supply chain to our own
values and practices; and● many internal policies developed in support of our vision andvalues such as
Safety,Human Rights and Working
Conditions, Training & Development and Donations & Sponsorship.
Our business model is designed to deliver positive impact for society
in parallel with economic value creation. We offer solutions tosustainability challenges that are linked to megatrends and create
value for all our stakeholders. Our Clean Mobility & Recycling strategy
and Let’s Go for Zero strategy are our compass to ensure integrated
value creation.

Performance evaluation
Economic, social and environmental performance is measured
annually against a set of KPIs reported through a group data
management system. The data are collected and reported at therelevant entity level: site, region, business unit or business group.
The corporate divisions EHS, HR, ESG and Finance aggregate theperformance data from all parts of the Group to evaluate Umicore’s

overall progress for review by the appropriate tactical and/or fullmanagement board.

the level of the business units and effective steering and oversightprocesses centrally.

Both financial and non-financial performance indicators are includedin overall general management performance measurement as
described in our remuneration policy. A new remuneration
policy which integrates climate, emissions, diversity and safety
performance metrics for members of the management board will
be submitted to the shareholders' approval at the annual general
meeting in 2022. Performance data linked to the ESG strategy will bemonitored using an internal ESG dashboard.

The four tactical boards are key contributors to the corporate
strategy and monitor its implementation. Day-to-day responsibility
for the economic, social and environmental performance lies with
the Executive Vice-President, business unit managers and sitemanagers. To assist the business units and sites, corporate divisions
have developed detailed technical guidance, ensuring collective
understanding of concepts, definitions, roles and responsibilities.
Regular workshops and meetings are organized each year at various
levels of the organization to share best practices.

Umicore uses an assurance provider to check its financial, socialand environmental data. Since 2021, this assurance has been carriedout by EY in its capacity of statutory auditor. EY evaluates thecompleteness and reliability of the reported data as well as therobustness of the associated data management system. Performanceindicators and reporting processes are reviewed and updated after
every assurance cycle. As part of the new Let’s go for zero strategy,
Umicore has committed to increased disclosure, which is ongoing
and will spread over several reporting cycles as part of a continuous
improvement process.

Performance responsibilities
Umicore believes in decentralization and in entrusting a large degreeof autonomy to each of its business units. The business units in turnare accountable for their contribution to the group’s value creationand for their adherence to group strategies, policies, standards and to
the sustainable development approach. Business units are clusteredin business groups according to strategic business development
topics. In addition, each business group is a member of the ESG board
to ensure ESG integration into those strategies.
This implies an effective decision-making process based on clear
allocation of responsibilities as described in Governance. This mustensure optimal balance between a culture of entrepreneurship at

Financial management
Approach and goals
Our approach to financial and economic management derives fromour vision, values and organizational principles as described in The
Umicore Way.
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. Shareholder returns depend on thevaluation of the Umicore stock and are supported by the payment
of dividends.
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 maintaininvestment 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,Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcovercoupled with strong cash flow generated from operations, allows us
to self-fund the majority of our growth initiatives.

Policies
Specific internal policies and guidelines have been developed
to frame the company’s approach to specific financial aspects
including: dividends, financing and funding, transfer pricing, credit
management and hedging.

Performance responsibilities
Accountability for the overall financial performance of Umicore lies
with the CEO, while each Executive Vice-President is responsible forthe financial performance of his/her business group or corporate
department(s). At business unit level, the head of the business unit
is responsible for the operational and financial performance of thebusiness unit. Financial controllers support the heads of the business
units in managing the financial and reporting aspects of the business
unit and support the financial allocation process for environmental,
climate, diversity and safety-related projects as they contribute toreaching our Let’s go for Zero objectives.
The Chief Financial Officer has overall oversight of Umicore’s financial
and economic performance and is supported by a Corporate Financeteam that includes specific expertise centers covering aspects such astax, treasury and accounting & control.

Operational management
Approach & goals
Umicore seeks to generate economic value through our existing
businesses and any acquisitions or organic growth initiatives that weundertake. This entails generating an operational return on capital
employed (ROCE: adjusted EBIT / average capital employed for theperiod) in excess of our overall pre-tax cost of capital. This cost ofcapital can vary over time as a function of our risk profile and thestate of the world’s debt and equity markets. ROCE is one of the mostimportant key performance indicators for steering Umicore.

We deal with precious and other rare metals and we therefore
have relatively high working capital intensity. Management istherefore incentivized to optimize performance both from anearnings perspective and by minimizing capital employed.
Investments are assessed on a case-by-case basis: acquisitions
are expected to be earnings-enhancing 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.
Umicore seeks to maintain market leadership positions in recycling
and clean mobility materials. The nature of our business, which
consists of products for highly specific applications, means that we
do not have a presence in any country or region which makes up asignificant part of that country or region’s economy. Our business is
global in nature with 50 production sites in 33 countries.
When designing growth projects, we carefully consider overall
contribution to our Let’s go for Zero ambitions.
Understanding the increasing importance of climate resilience, weare supporting the recommendations of the Task Force on Climate­
Related Financial Disclosures (TCFD) and are enhancing the mitigationof our climate-related risks and opportunities. Managing these risks
and opportunities is closely linked to our business model, our global
operations and environmental impact on society.
To deliver operational excellence, Umicore focuses on 3 pillars:
people, competencies and values.
People need to be equipped and digitalization roles filled, whichis the task of the
Umicore Technical and Digital Academy
as described above. Competencies are developed in centers ofexpertise, such as the cloud center of expertise, the computational
science center, the data management center and the robotics center.
Values are developed in roadmaps and project managers guidebusiness units to set up projects.

93

KPIs on operational excellence and digitalization have been
set up and some business units have been given objectives
from the management board, for example to improve EBIT due
to digitalization.

Policies
Specific internal policies and guidelines have been developed toframe the Company’s approach to specific operational aspects
including ROCE calculation methodologies, ROCE targets and Mergers& Acquisitions.

Performance responsibilities
In the management board, the Chief Financial Officer and the Chief
Strategy Officer are responsible for operational management and are
the leads for the Digital & Operational Excellence Board. This tacticalboard - managed by the SVP Digitalization - was launched at the endof 2021 and is being developed further in Q1 of 2022.
Mergers and acquisitions are assessed by the Corporate Development
department, which is supervised by the Chief Financial Officer.
The Business Group Executive Vice-Presidents are each responsible
for the overall operational performance of their business group. At
business unit level, the head of the business unit is responsible forthe overall operational performance. The general manager of eachsite has a similar responsibility at site level. Implementation andperformance against environmental and social KPIs are monitored aspart of the ESG Board.

Innovation management
Approach & goals
Technology is at the core of what we do and enables our capability
to deliver value to our customers and markets by developing stateof the art products, processes and services. Sustainability is a key
driver of our technology development, targeting safe processes,
sustainable products, supply and processes, with ambitious targets

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcoverto go for zero greenhouse gases in 2035 for scope 1 and 2. We invest
consistently between 5 and 7% of revenues (excluding metal) in R&D
and innovation, working on the basis of a balanced portfolio ensuring
short-term delivery to our businesses and customers while carefully
preparing for the longer-term future. Our portfolio spans over threetime horizons and includes a core competence dimension, securing
technological excellence in all crucial areas.

Policies
All business units develop a business roadmap spanning 15+ years
and translate this into a product and service roadmap, which inturn translates into a technology and competence roadmap. Theseroadmaps are validated regularly based on changes in markets andtechnologies and are used to steer our project and activity portfolio.

Performance responsibilities
R&D at Umicore consists of a hybrid R&D organization, withbusiness-specific R&D complemented with corporate R&D and a
new business incubator, each with specific roles and responsibilities.
These R&D departments come together in an innovation excellenceboard, reviewing how R&D can analyze, measure and improve
effectiveness and efficiency. The innovation excellence board also
evaluates cross-activity synergies and common topics including R&D
talent development, digitalization of R&D, and advises the CEO on
innovation management.
The management board reviews the complete portfolio oftechnology and innovation on a quarterly basis, covering all program
milestones, competences and innovation value and performance
KPIs. This is managed by the CEO and coordinated by corporate R&D
through a central project management office, which connects tovarious project management offices across Umicore for alignment.
Business units are responsible for the setup, delivery andevaluation of their project portfolio in line with customer andmarket expectations.

94

Environmental management

Workforce management

Approach & goals

Approach & goals

Our approach to environmental management derives from thevision, values and organizational principles found in The Umicore
Way. With our Let's Go for Zero strategy, we commit to minimizing
our environmental impact. While Umicore’s Let’s go for zero strategy
focuses on greenhouse gas and other emissions, we continuously
monitor, control and report the performance of our organization in
relation to other environmental aspects. A detailed overview of ourenvironmental performance indicators can be found in Environment
and in the Environmental Statements.

Our approach to workforce management derives from the vision,values and organizational principles found in The Umicore Way andis reflected in the
Global Framework Agreement on Sustainable
Development, to which we subscribed in 2007, and renewed in
2019. Umicore implements the guidance on Human Rights, collective
bargaining, equal opportunities, violence and harassment at work,
safe and healthy working conditions and environmental issues.

Policies
An internalGroup EHS Guidance Note details the approach tomeasuring and reporting on each relevant environmental indicator.
In addition, a specific internal policy on energy efficiency createda high level of awareness and commitment at sites and within
business units to strive for continual energy efficiency improvement.
Umicore also encourages all business unit initiatives that increase
recycling potential. On a global scale, metals recycling reduces theenvironmental impact related to the sourcing and transformation of
metals into products.

Performance responsibilities
In the management board, the Executive Vice-President for Corporate
Security, Environment, Health & Safety, Internal Audit, Legal andProcurement & Transportation is responsible for all environmental
matters and leads the ESG Board. Implementation and performanceagainst Environmental KPIs are monitored as part of the ESG Board.
The Business Group Executive Vice-Presidents are each responsible
for the overall environmental performance of their business 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.

With our Let’s go for zero strategy, we commit to zero inequality
and zero harm. While Umicore’s Let’s go for zero targets determinea special focus, we believe it is equally important to continuously
monitor, control and report our social performance in other areas. A
detailed overview of our workforce performance indicators can befound in Employees and in the Social Statements.

Policies
An internal Group Social Reporting Guidance Note provides detailed
guidance on measuring and reporting on social performance.
Specific internal policies have been developed to frame specificelements of our social management approach including
Diversity & Inclusion, Recruitment,
Safety,Human Rights
and Working Conditions and Training & Development.
For our approach to health and safety, theGroup EHS GuidanceNote (hereafter ‘EHS Guidance Note’) is Umicore’s central EHS
management system. It describes the groupwide environmental,
health and safety requirements and expectations and provides aframework for the business units and sites consistent with, andexplicitly referencing, the ISO 14001 management system. This
guidance spans the full range of EHS topics including Occupational
Health and Safety. The Umicore Group Safety Policy provides aframework for business units to develop and implement safety
programs needed to achieve and maintain excellence in safety
performance. The Policy is guided by universal core safety principles

Umicore Strategy Performance Leadership Statements About Glossary Backcoverthat can be translated by each business unit to their specificenvironment to take actions according to their specific risks.

Performance responsibilities
In the management board, the CEO has oversight responsibilities
for Umicore’s Human Resources and leads the tactical People &Organization Board, which is managed by the Senior Vice President
Human Resources. For all health and safety matters, the Executive
Vice-President for Corporate Security, Environment, Health & Safety,
Internal Audit, Legal and Procurement & Transportation is responsible
and the health and safety KPIs are monitored by the ESG Board.
The Executive Vice-Presidents are responsible for the social aspectsof their business group. At business unit level, the head of thebusiness unit is responsible for the overall social performance.
The general manager of each site has a similar responsibility
at site level. A regional Human Resources organization exists tomanage social aspects at regional and country level, and to provide
structural support to the business units in all aspects of humanresources and health and safety management. Implementation andperformance against workforce KPIs are monitored as part of thePeople & Organization Board. Implementation and performanceagainst diversity and health and safety KPIs are also monitored aspart of the ESG Board.

Managing impact on society
Approach & goals
Umicore’s main goal is to maximize our positive impact on society,both in our value chain and with our products and services. Our
approach to managing our impact on society derives from thevision, values and organizational principles found in The Umicore
Way and in our closed-loop business model. The relationship with
our stakeholders, customers and suppliers is essential to building
financial and economic value and plays a key role in the promotionof social and environmental best practices. As a signatory of
the UN Global Compact, Umicore is looking through the lens of
the Sustainable Development Goals to maximize its contribution
to society.

In our Let’s Go for Zero strategy, we commit to zero harm. Upstream,
we specifically act to eliminate any social or environmental harmin our supply chain. Downstream, we increase the impact of our
products and services by working directly with our customers andthrough our commitment to responsible sourcing choices. A detailed
overview of our performance indicators for our impact on society canbe found in Society, Sustainable Products and Services and in theSocial Statements.
For the approach to donations, Umicore has a two-tier approach.
Each business unit is expected to allocate an annual budget thatprovides sufficient donations and sponsorship support to each site’scommunity engagement program. By way of guidance, this budget
should equal an amount corresponding to one third of 1% of thebusiness unit’s average annual consolidated adjusted EBIT (i.e.,
excluding associates) for the 3 previous years. Most of the donations
from the business units go to charities close to their sites, in supportof the local community. Group donations focus on projects with aninternational scope, with priority given to initiatives that have a clear
link with sustainable development and that have an educational
component. A part of Group donations also goes to disaster relief.
As a matter of policy, Umicore does not make donations to politicalparties or organizations.

Policies
Specific charters/policies have been developed to frame specificelements of our approach to responsible sourcing, including
the Umicore Global Sustainable Sourcing Policy, the Sustainable
Procurement Framework for Cobalt and the Responsible global
supply chain of minerals from conflict-affected and high risk
areas Policy.
For donations, Umicore has a Group Policy on donations andsponsorships with general guidelines on the thematic focus ofdonations and on budget allocation.

Umicore Integrated Annual Report 2021

95

Performance responsibilities
Our presence and impact both upstream and downstream is basedon a business-specific approach whereby all business units are
required to identify and engage with their respective suppliers,
customers and stakeholders. For all responsible sourcing matters, theExecutive Vice-President for Environment, Health & Safety, Corporate
Security, Procurement & Transportation, Legal and Internal Audit is
responsible. The Executive Vice-Presidents are responsible for the
responsible sourcing aspects of their business group. At business
unit level, the head of the business unit is responsible and thegeneral manager of each site has a similar responsibility at site level.
In addition, a team comprising members of various departments –the ESG committee - meets regularly to map overall stakeholder
expectations and to convene, whenever necessary, internal orexternal stakeholder dialogue sessions. For donations at Grouplevel, the budget is set at the discretion of the CEO and donations
are coordinated and managed by a Group Donations Committee
reporting to the CEO.

Umicore Strategy Performance Leadership Statements About Glossary BackcoverManaging risk effectively
Business units

Carry out a risk scan to
identify all significant risks(financial and non-financial)
Detail each risk on an“uncertainty sheet” outlining
potential impact, likelihood,status of management
action or mitigation, andownership
Report bottom up to
the Management Board
member responsible for thatbusiness unit

Our internal control system

Management
Board Member

Management Board

Supervisory Board

Identify, evaluate andmitigate risks

Succesfully exploit business
opportunities

Assess the risk profile of thecompany within the context
of the Company strategy
and external factors

Assess market conditions,competitor positioning,technology developments or
regulatory changes against
the business strategy
execution

Ensure adequate risk
management and internal
control processes are in
place

Internal control mechanisms exist throughout Umicore to provide
management with reasonable assurance of our ability to achieve ourobjectives. They cover:●●●●Effectiveness and efficiency of operations
Reliability of financial processes and reporting
Compliance with laws and regulations
Mitigation of errors and fraud risks

Manage and mitigate
possible business risks

Audit Committee (on behalf of the Supervisory Board)
Monitor and review internal control and risk management system, investigating specific aspects on an ongoing basis

External Audit
Independent assurance

Umicore adopted the COSO framework for its enterprise risk
management and has adapted its various constituents within its
The Umicore Way and theorganization and processes.
Code of Conduct are the cornerstones of the internal control
environment; together with the concept of management by
objectives and through the setting of clear roles and responsibilities,
they establish the operating framework for the company.

Each business unit operates in an environment that 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 and each business unit is responsible forthe mitigation of its own risks. Mitigating actions are systematicallyreported corresponding to the respective strategic objectives andidentified risks.

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 corporate security,environment, health and safety, human resources, information
systems, legal, trade compliance, research and development andsupply chain management.

Under the auspices of the Management Board, specific corporate
departments are also tasked with managing and mitigating certain
risks and with ensuring that adequate systems are in place toaddress them. These risks cover Group-wide elements that extend
beyond the purview of individual business units, (e.g., financial,strategic, social, reputational, climate and environmental-relatedrisks and opportunities) in the short, medium or longer term, The
audit committee of the Supervisory Board reviews all financial andnon-financial risks of the company.

Umicore operates a system of Minimum Internal Control
Requirements (MICR) specifically to 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.

Umicore Integrated Annual Report 2021

96

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, three cycles (Financial Closing
and Reporting, Order to Cash and Treasury Management) wereassessed in the course of 2021 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 toidentify risks in a proactive and dynamic way and manage or mitigate
risks to an acceptable level wherever possible.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

97

Risks & Opportunities
We take a balanced approach to managing risk and seize opportunities to deliver on our strategic goals

RISK & OPPORTUNITYREGULATORYSUSTAINABLE && LEGAL CONTEXT ETHICAL SUPPLY

METAL
PRICE

MARKETTECHNOLOGY &SUBSTITUTIONINFORMATIONTALENT
SECURITY & DATA ATTRACTION &PROTECTIONRETENTION

CLIMATE &ENVIRONMENTCHANGE INRISK PROFILE

↑

↑

↑

↑

↑

↑

→

→

CHANGE IN
OPPORTUNITY
PROFILE

↑

↑

→

↑

↑

→

↑

↑

Digitalization& Cybersecurity

LINK TO
MATERIAL TOPICS

Ethical Supply
Product StewardshipResponsible Governance
Sustainability Governance

Climate& Environment
Ethical Supply
Sustainable Governance
Sustainable Sourcing& Recycling Services

Innovation
Sustainable
Sourcing& Recycling
Services

Product Quality& Production
Capacity
Sustainability
Governance

Innovation
Product Quality& Production Capacity
Product Stewardship

Employee Engagement
Digitalization& Cybersecurity

Climate& Environment
Innovation

Employee Health,
Safety & Wellbeing

Sustainability Governance

Sustainability Governance

Waste
Water

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

1 Regulatory and legal context

LINK TO MATERIAL TOPICS

Digitalization & Cybersecurity
Ethical Supply
Product StewardshipResponsible Governance
Sustainability Governance
CHANGE IN RISK PROFILE↑CHANGE IN OPPORTUNITY PROFILE↑

Risk description
The globally changing regulatory environment brings both threats
and opportunities for Umicore. This applies not only in the countries
and regions where Umicore operates, but also in those where its
products are sold and used.
Umicore’s business operations are subject to a variety of increasingly
stringent EHS (environment, health & safety) related laws,
regulations and standards. In the short term, these present
operational challenges for our businesses, resulting in continuous
improvements and investments (hence in higher costs) andpotentially in an uneven competitive environment. One of the areasin which this short-term impact is visible, is the renewal or “ex officio”
amendment of operational (environmental) permits for Umicore’s
production sites. In the course of 2021, the Flemish government
imposed new and more stringent environmental requirements for
Umicore’s recycling plant in Hoboken. These new and challenging

98

requirements include annually declining limits for levels of lead in
the blood of young children under the age of 12 living in the vicinityof the Hoboken plant. Despite Umicore’s continuing efforts to reduce
the harmful effects of emissions, it cannot be excluded that certainof these new targets in the Hoboken permit will not be met. As
Umicore’s recycling activities are concentrated on this one unique sitein Hoboken, failing to reach an environmental target might have asignificant impact on Umicore’s earnings and cash flows.

The growing trend towards electrification and more stringent
emission control should be seen as an opportunity to Umicore’s
business as described in Market. However, governments might
decide to postpone the implementation of such new legislation. In
the short term, such delays could have a negative impact on certain
parts of Umicore’s business. In the medium term, this will rather
be an opportunity for further and increased market development,
positively impacting sales and revenues.

Similarly, environmental legislation can impact the way end-of-lifebatteries must be handled, transported and stored, which in turn candrive business decisions.

Potential product or contractual liabilities remain risk factors to bemonitored at all times.

However, in the mid- to longer term, Umicore can benefit fromthese trends, especially those regarding the reduction of vehicle
emissions, electrification and the circular economy. This evolving
EHS regulatory framework will ultimately also be beneficial tothe environment and society as new and better technologies will
have to be developed and implemented, for the emissions of bothproduction facilities and vehicles as well as to cope with resource
scarcity. Changes in product content regulation in general and more
specifically REACH regulation can in turn drive business options
and/or technology choices.
Data protection and intellectual property rights have a significant
impact on technology-driven businesses including Umicore. Failure
to adequately manage data, knowledge and intellectual property
rights may, in the short- and medium-term, have a negative impact
on Umicore’s businesses and freedom to operate. Despite robust
mitigation measures in place, it cannot be excluded that Umicore
becomes the victim of a data breach and will be fined or have tocompensate victims as a result of such a breach. Umicore could
be forced to take legal action against perpetrators to safeguard its
intellectual property rights. Likewise, Umicore is also exposed to therisk of having to defend itself against alleged breaches of third-party
IP rights, despite efforts to manage its IP portfolio actively.
Geopolitical conditions, trade legislations and restrictions continue tobe a factor in Umicore’s trans-border activities in the short, medium
and long term.

National and international tax regulation is increasing and becoming
more complex which increases the Group’s tax compliance relatedrisks (particularly in the field of transfer pricing and indirect taxes
such as VAT). The uncertainty associated with announced or potential
tax reforms is equally increasing (both on a national level suchas for example in Brazil or on an international level such as forexample the OECD initiatives). These risks might impact the Group’s
earnings despite Umicore continuing to manage them proactively(e.g. through the recognition of uncertain tax position provisions).

Risk profile
The increased complexity of the global regulatory environment is aclear sign that there is an upward shift in this risk profile, while atthe same time, new opportunities will equally rise out of this more
stringent legislation.
Risks and opportunities related to trade and tariffs (including export
regulations regarding both goods and technologies) require closemonitoring and follow-up.
The risk profile for matters related to intellectual property rights anddata protection is increasing as a result of the stricter regulations andthe IP landscape which has become more litigious than previously.
Despite our active management of patents and IP rights, Umicore
cannot exclude that any of our patents will be violated (and we
may not always be able to successfully take action to stop or obtaincompensation for any such violations) nor that there will not beUmicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

any litigation against the company for an alleged infringement of athird-party IP right.

Risk mitigation
Umicore provides continuous training on regulatory requirements toensure compliance with applicable legislation.
Umicore is continuously and systematically monitoring the regulatory
landscape on health, safety, environment and climate change, andadapting its frameworks and reporting accordingly.
To ensure ongoing compliance with EHS legislation on our industrialsites, Umicore has a well-established EHS compliance audit programand constantly monitors changes in legal requirements where it
operates. For more information, see Environment.
Several initiatives have been taken and continue to be taken to
reduce the possible impact of harmful emissions from Umicore’s
production, such as the creation of a “green zone” on and next to the
Hoboken production facility as described in Environment.
Umicore closely monitors all changes in interpretation as well as
guidance documents that might affect its REACH implementation
strategy. In 2021 we submitted 16 additional substances forregistration under REACH due to new business developments.
As part of regular maintenance, we updated 96 REACH dossiers.
Umicore has submitted 12 registrations in Korea in 2021 for priority
chemical substances.
To mitigate the potential impact of (product) liability claims, Umicore
has implemented mechanisms such as contract management
and risk transfer using insurance policies, in addition to rigorous
quality controls.
Umicore’s dedicated Intellectual Property Team sees to it that our
products have the freedom to operate and is entrusted with the
management of Umicore’s IP activities worldwide.

More and more governments have implemented new or enhanced
legislation on data protection, such as GDPR in Europe, LGPD in Brazil,
POPI in South Africa or PIPL in China. Umicore has implemented
the necessary governance structures in compliance with theselegislations and is closely monitoring any changes or new regulations
on this topic.
To safeguard its data and innovative ideas, Umicore is providing
training to its employees worldwide on how they can contributeto and ensure the protection of trade secrets. To that end, the “I
Stay Alert” campaign was launched in 2021, consisting of several
training modules and tools as described in Information security anddata protection.
The Umicore Trade Compliance Team closely follows and responds toglobal trade conditions.
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. To manage policy risks, Umicore
participates in public consultations and is a member of multiple
industry associations, including sourcing, climate and business
related topics. As described in Engaging For Impact, Umicore is
supportive of challenging targets in areas such as battery regulation,
as they represent opportunities for us.
Umicore is further enforcing its international tax team and increased
its use of third-party advisory services to monitor and manage tax
related risks.

99

2 Sustainable and ethical supply

LINK TO MATERIAL TOPICS

Climate & Environment
Ethical Supply
Sustainable Governance
Sustainable Sourcing & Recycling Services
CHANGE IN RISK PROFILE↑CHANGE IN OPPORTUNITY PROFILE↑

Risk description
In the short term, potential disruption in supply chains due tofactors including COVID-19 restrictions, changes in trade regulationor geopolitical events and subsequent delays at borders and ports,
container transportation shortage and high energy prices remainsa real risk. A further source of stress in the supply relates tostricter application of regulations on transboundary movements ofwaste and/or bans by carriers, ports or countries to accept waste or
dangerous goods. Regarding the supply of metals, securing adequate
volumes of raw materials is essential in the ongoing viability of our
product and service offering and in achieving our growth objectives.
Responsible sourcing is a key priority and competitive edge for
Umicore: when sourcing materials or through indirect procurement,
we check suppliers and conduct due diligence based on a risk
assessment to ensure that no harm is inflicted on people (e.g.,
Human Rights violations), the environment or society. More details
about what we expect from our suppliers can be found in Society.
Insufficient availability of raw materials such as palladium, rhodiumUmicore Strategy Performance Leadership Statements About Glossary Backcoveror battery nickel units, combined with a lack of alternatives, canimpact metal prices as described in Metal price.
In the medium term, price volatility and limited availability ofsupply remain a concern, in particular for battery materials for which
demand is expected to soar for certain platinum group metals, theuse of which is currently closely linked to internal combustion engine
technology. The uncertain grade mix for battery materials may leadto inadequate supplies. Other materials such as germanium facelong-term supply challenges due to changing market conditions,where there is a trend for suppliers to move downstream. With
regard to sustainability and the impact of Umicore’s activities onsociety, it is crucial we further deploy the Umicore Let’s go for
Zero strategy, with a supply chain that is fully certified against
environment, social and governance criteria and decarbonization
targets for scopes 1, 2 and 3.
In the long term, regarding supply, Umicore requires certain metals
or metal-containing raw materials to manufacture its products
and feed its recycling activities. Some of these raw materials arecomparatively scarce and require very specific sourcing strategies.
Obtaining adequate supplies of these materials is important for theongoing success and growth of our business.

Risk profile
Regarding battery materials in particular, demand is expected
to increase massively in the coming years and decades, as iscompetition for the sourcing of the required materials. Regarding
certain precious metals and platinum group metals in particular,
physical supply is currently tight and sensitive to any supply or
demand disruption in the short term, while sensitive to the pace ofelectrification and alternative drive train technologies such as fuelcells in the longer term.
The impact of COVID-19 and measures taken to contain contagion
are expected to continue having an impact on the availability of raw
materials and in general on the supply chain, but that risk is expected
to decrease and stabilize through 2023. Conversely, geopolitical risks
are increasing.

Existing and upcoming laws at national and EU level on due diligenceand sustainable product policy have increased awareness about
the topics of responsible sourcing and sustainable value chains, inparticular for designated conflict minerals (tin, tantalum, tungsten
and gold) and more recently also for battery materials (cobalt,
nickel, lithium). Requirements for robust due diligence management
systems, compliance and reporting will only increase in the coming
years for the entire supply chain, both for impact on Human
Rights, and for environmental, social and governance (ESG) criteria.
Increased standards are also an opportunity for Umicore becauseof our long-standing experience in due diligence and responsible
sourcing and because they will create a more level playing field forthe industry.

Risk mitigation
Umicore has implemented policies and measures covering Human
Rights, the right for workers to organize, collective bargaining,equal opportunities and non-discrimination, banning of child labor,banning of forced labor, consistent with International Labour
Organisation (ILO) standards, as supported through a Global
Framework Agreement on Sustainable Development with IndustriALL
Global Union.
Umicore’s policies and charters such as theCode of Conduct,
Human Rights Policy and the Umicore Global Sustainable
Sourcing Policy (UGSSP) illustrate our long-standing and growing
experience in ensuring we only buy from suppliers who canguarantee sustainable and ethical sourcing.
In addition to these general policies, Umicore also has specific risk­
based policies in force, designed to safeguard the environment andto protect Human Rights in our supply chain:
Responsible global
supply chain of minerals from conflict-affected and high-risk areas
andSustainable Procurement Framework for Cobalt, which
are aligned with the OECD ‘Due Diligence Guidance for Responsible
Supply Chains from Conflict-Affected and High-Risk Areas’ for which
Umicore receives annual third-party validation.

Umicore Integrated Annual Report 2021

100

Both policies include a robust due diligence system, which includes
background screening of suppliers, a risk assessment based on
country, material and supplier risk and risk mitigation actions, in
combination with onsite visits and third-party audits for criticalsuppliers. Under the due diligence system of the Cobalt Framework,
the identification of ‘red flags’ or ‘orange flags’ triggers engagementwith the supplier on the related issue and an internal decision­
making process involving senior management in appropriate follow­
up. Umicore remains the first cathode material producer to offer
certified materials from a clean and ethical origin.
Both policies are currently in the final stages of an extensive review,which will include a broadened scope for environmental, social andgovernance (ESG) criteria and a strengthened risk assessment andrisk mitigation approach.
In addition to our continued engagement in sustainable cobalt
sourcing, in 2021 Umicore also implemented due diligence in the
supply of the other raw materials for batteries, e.g. nickel andlithium. The approach is directly inspired by Umicore’s experience
with cobalt and follows the basic steps of the Sustainable
Procurement Framework for Cobalt.
Furthermore, Umicore continues to ensure that its production
operations are certified as conflict-free and receives site and metal­
specific responsible sourcing certifications from the LBMA, RJC andRMI. For more information, see Society.
Regarding managing risks of critical materials and supply disruption,
mitigation actions can vary depending on the materials and theposition of the business unit in the market. Beyond responsible
sourcing, we ensure that materials can be supplied from several
reliable suppliers, we closely monitor developments in other regions
and investigate other projects to diversify sourcing and we seek out
secondary raw material sources and negotiate long-term contracts.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

3 Metal price

LINK TO MATERIAL TOPICS

Sustainable Sourcing & Recycling Services
CHANGE IN RISK PROFILE↑CHANGE IN OPPORTUNITY PROFILE↑

Risk description
Umicore’s main risk in the short term is related to the volatilityof metal prices. Earnings are exposed to risks relating to theprices of the metals which are processed or recycled. These risks
relate mainly to the impact that metal prices have on the surplus
metals recovered from materials supplied for recycling, and concern
platinum, palladium, rhodium, gold, silver and a wide range of baseand specialty metals.
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 andthe price received. Accordingly, there is a transactional exposure
to any ﬂuctuation in price between the time raw materials are101

purchased (when the metal is “priced in”) and the time the products
are sold (when the metal is “priced out”). For more information on
the structural risk and on the transactional and inventory risk related
to the metal prices, see Statements, note F3.

As described in the Sustainable and ethical supply risk, metal scarcity
is increasing because of tight supply and demand and other factors
such as geopolitical tensions or trade regulations.

Materials produced by Umicore contain precious or scarce metals
which are partly sourced from in-house recycling operations and,for the balance, procured from primary metal producers. Umicore’s
ability to procure the required quantity of such metals is key indetermining our ability to produce the materials which have beenordered by our customers. The current crisis in Ukraine could havean influence on Umicore’s supply of certain metals such as palladiumand nickel in view of Russia’s position as major global producer.
Potential sanctions or other trade disruptions could in particularlead to delay or cessation of supply which could impact global car
production and Umicore’s Catalysis production levels and earnings.
Such events would also fuel metal price volatility.

Risk mitigation

The availability of metals such as nickel, lithium and cobalt - as
described in Sustainable and Ethical Supply - is the main long­term risk.
Due to the liquidity of the metal markets for cobalt, rhodium andpalladium, Umicore’s impact on the metal price is limited.

Risk profile
Prices for precious metals strengthened further in 2021, reachinghistorically high levels for precious metals and PGMs. The priceof rhodium in particular increased significantly in the first half ofthe year, in a context of tight supply and high demand from theautomotive industry. It then decreased back to 2020 levels following
the semiconductor supply shortage, which impacted the automotive
and many other industries.
The prices of cobalt, nickel and lithium increased over the courseof the year 2021. These increases are mainly driven by the growing
demand for EV batteries.

For some metals quoted on futures markets, Umicore hedges a
proportion of its forward metal exposure to cover part of the future
price risks.
Over the course of 2021, Umicore entered additional forward
contracts securing a substantial portion of its structural priceexposure for certain precious metals in 2022, 2023 and 2024, thereby
increasing earnings predictability. For 2022, based on the respective
currently expected exposures, the following lock-ins have been
secured: close to two thirds for palladium, more than half for gold,
somewhat less than half for silver and close to one third for platinum
and rhodium. For 2023, the expected lock-in ratios are close to athird for gold, silver and palladium and a minor portion for platinum
and rhodium. For 2024, only a minor portion has been locked in for
the expected gold, silver and palladium exposures. For rhodium inparticular, Umicore managed to enter forward contracts locking ina minority of expected exposures, despite the absence of a liquid
futures market.
The Group’s policy is to hedge the transactional risk to the maximum
possible extent, primarily through forward contracts. For a selectionof metals, either no derivatives markets exist, or the existing market
does not offer the required liquidity to enter forward contracts.
This is increasingly the case for metals gaining importance, such ascobalt and lithium. To mitigate the price risk on its transactions inthese metals, Umicore maximizes the use of back-to-back hedging,matching the price reference of Purchases and sales.
Umicore is continuously increasing production of precious and scarce
metals from its recycling capabilities, thereby securing a significant
proportion of its metals needs. In addition, the group maintains close
commercial relationships with leading primary metals producers
from which it procures metals through annual or evergreen contracts.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcoverbattery materials is a risk in both the short and medium term.
Geopolitical conditions can be a factor in market uncertainty in the
short and medium terms.

4 Market

LINK TO MATERIAL TOPICS

Innovation
Product Quality & Production Capacity
Sustainability Governance
CHANGE IN RISK PROFILE↑

The pace of electrification also has an influence on Umicore’s catalysis
and recycling activities. Since catalysts are produced with platinumgroup metals (PGMs), a reduced demand for catalysts has an impact
on PGM prices and availability both for Umicore and society. To
ensure efficient production of rechargeable battery materials, it isimperative that we have a consistent supply of metals as describedin Sustainable and ethical supply.

Risk description

In the long term, the transition to electrification has a positive
impact on the production of rechargeable battery materials anda negative impact on the production of automotive catalysts.
This changes the competitive environment. Through its current
customer portfolio, Umicore is exposed to mid-nickel platforms which
are being replaced, much faster than initially anticipated, by high­nickel platforms. Accordingly, customers are scaling back demand
projections for mid-nickel cathode material applications; also in thefirst half of 2021, Umicore’s NMC (Nickel Manganese Cobalt) volumes
reflected an unfavorable customer and platform mix in China.

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.
The changes in the automotive industry create the main risks for
Umicore today.

Umicore’s customers – car manufacturers – concentrate the numberof platforms for automotive catalysts. The market for rechargeable
battery materials is becoming more crowded as new players enter.
At the same time, more and more OEMs (original equipment
manufacturers) are starting to produce rechargeable battery
materials – in addition to being Umicore’s customer, they are
becoming Umicore’s competitor.

CHANGE IN OPPORTUNITY PROFILE↑

In the short term, Umicore has limited visibility on automotive
demand due to the ongoing semiconductor shortage. The unclear
pace of electrification also poses uncertainty in terms of demand of
our products. Electrification will reduce the demand for automotive
catalysts and boost the demand for rechargeable battery materials.
Increased demand for rechargeable battery materials requires moreproduction lines and sites, entailing challenges in hiring and training
people, acquiring the right qualifications against the right timelines
and available CAPEX. This lack of visibility of demand for rechargeable

This has an impact on Umicore, but with its positioning, Umicore
is also influencing the changing market structure for rechargeable
battery materials for the automotive industry. Umicore is uniquely
positioned to give the market a closed-loop solution for cathodematerials, as we are both producing cathode materials and recycling
batteries. Furthermore, Umicore’s recycling services are positively
impacting society by enabling a shift towards an industrial futurewith low impact.

102

Risk profile
As confirmed in the qualitative scenario analysis of our climate
related risks and opportunities, the electrification of mobility is
increasing Umicore’s risk profile for the catalysis business and at
the same time is increasing Umicore’s opportunity profile for therechargeable battery materials business.

Risk mitigation
Notwithstanding the limited visibility on automotive demand causedby the global semiconductor shortage, Catalysis is expected tocontinue to benefit from its strong market position in gasoline
catalyst applications in Europe and China, which will remain, even in
fast electrification scenarios. Umicore works continuously to maintainits excellent cost position with a globally optimized production
footprint and a low break-even point, which resulted in market
share gains in 2021. We have the right product and technology
portfolio with strong demand from our customers, also for the next
waves of emission legislation such as EURO 7. These strengths will
feed the value creation potential over the next decade of Umicore’s
Automotive Catalysts activities in a context of declining internal
combustion engine volumes.
In Energy & Surface Technologies (E&ST), Umicore is actively
diversifying its customer and platform exposure and is currently
in advanced qualifications with its high-nickel cathode material
technology with various cell and car customers. Upon successful
qualification, production for these applications is expected to ramp
up to significant volumes during the second half of 2023. Increased
intimacy with car OEMs and qualifications for the right platforms
are ever more important, which is why we are solidifying our
relationships with customers to improve our supplier status. The
planned JV with Volkswagen will secure access to a significant partof the European EV market. Umicore’s agility in our operations andsupply chain equip us to adapt quickly to changes in demand.
The market risk is intimately associated with the metal price risk. As
described in the section Metal price above, we hedge a proportion of
our forward metal exposure to cover part of the future price risks.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

The complementarity of our activities has proven to be a truecompetitive edge. In E&ST and Catalysis we serve the automotive
market by enabling electrification on a mass scale and by offering
cutting-edge technologies for clean combustion engines. Throughour Recycling activities, we close our own and our customers’materials loop and offer a unique sustainable and circular approachthat will be ever more important in a world of raw materials scarcity.
Umicore will further strengthen its market position with our ambitionand plan to capture growth from the next wave of sustainability­
driven markets, such as fuel-cell catalysts and battery recycling.
For more information, see Financial and Operations.

5 Technology and substitution

LINK TO MATERIAL TOPICS

Innovation
Product Quality & Production Capacity
Product Stewardship
CHANGE IN RISK PROFILE↑

In the short term, the main technology risk is linked to whether
and when the European Union will adopt the new EURO 7
emissions standard for gasoline and diesel light duty and heavy­
duty vehicles, as this would have important consequences for
Umicore’s technologies.
The substitution of internal combustion engines by electrical vehicles
and fuel cell cars presents an opportunity for Umicore in the
short and medium term. Apart from the opportunity for Umicore’s
battery materials, Umicore can leverage its catalysis expertise inhydrogen applications. Umicore’s risk/opportunity depends on how
well the development of our technologies will correspond to suchnew demands.
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).
In achieving an optimal cost-benefit balance, the cost efficiency ofour production processes plays a key role. Hence, there is a risk that
we could fall behind the competition in our operational excellenceand digitalization.

Risk description

It is crucial for Umicore to consistently develop winning technologies,
such as in battery recycling and for cathode materials. For example,
lithium iron phosphate (LFP) battery chemistry is a mainstream
technology in China. This chemistry is not produced by Umicore andthere is a risk that LFP could become widely adopted elsewhere.
A switch to solid state batteries – as a substitution for lithium-ion
batteries - is an opportunity in the long term as this battery
technology calls for more sophisticated materials solutions that may
require Umicore’s expertise.

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.

Umicore’s activities have a lasting positive impact on society.
Umicore upskills its workforce by offering learning and development
opportunities in areas such as digitalization and technology as

CHANGE IN OPPORTUNITY PROFILE↑

103

described in Innovation. We are continuously improving ourtechnologies to minimize the environmental impact from ouractivities. Umicore’s R&D in automotive catalysts, batteries and fuelcells contribute to clean mobility and our recycling developments
make industry more sustainable.

Risk profile
Given the pace of change in the market, Umicore’s opportunity profile
is increasing, but at the same time, the risk profile is also increasing.

Risk mitigation
Timely introduction of key technologies is essential. As describedin the Market risk, Umicore closely monitors the market and makes
sure a close relationship with its customers is maintained to focus
on the right technology trends at the right time. We prioritize key
development projects and allocate the necessary resources. We arecontinuously working on the efficiency and digitalization of our R&D.
As described in the Regulatory and legal context risk, theenvironmental permit for the smelter on our Hoboken site is a risk for
our license to operate. To mitigate this risk, Umicore has leveraged
robotic process automation (RPA) to automate the ‘wind barometer’
process which steers which activities on the site can be conductedaccording to the weather forecast. We are also evaluating whether
we can engineer the slags on our Hoboken site towards a cement
replacement product.
To support our opportunity in hydrogen technology, Umicore has set
up a dedicated ‘Fuel Cells’ business unit and in our New Business
Incubator there is a portfolio of projects around hydrogen.
To remain a pioneer in battery recycling we continuously develop
and improve our battery recycling technologies taking into accounttechnical, economic and environmental aspects and building on a
decade of experience. The newest generation will be introduced
in 2022.

Umicore Strategy Performance Leadership Statements About Glossary BackcoverFor cathode materials, we investigate a range of chemistries andprepare them to be ready for the market. We design products bothfor performance and for cost-driven segments. In line with the trend
to lower cobalt and nickel contents in the cost-driven segment andto mitigate the risk posed by LFP, we are developing our high lithium
manganese (HLM) solution.

on our customers and our financial results. Any compromise to theconfidentiality of intellectual property would negatively impact ourcompetitive advantage. Unauthorized modification of financial data
would jeopardize accurate reporting to shareholders. Whether in the
short, medium or long term, any cyber incident or data breach would
have an immediate impact.

Umicore patents disruptive technologies. In 2021, Umicore registered
69 new patent families.

Beyond Umicore’s own operations, we would be impacted if anyof our main suppliers were to experience a cyber incident. Cyberincidents can be local or global and if Umicore is attacked, this
could have consequences for our customers and as an example theautomotive industry could be impacted.

For more information, see Innovation.

6 Information security & data protection
Risk profile
LINK TO MATERIAL TOPICS

Digitalization & Cybersecurity

Cyber attacks may be very focused and advanced. The expanding
threat landscape and expanding digital footprint is leading to anincrease in cyber attacks. The risk profile is increasing because there
are more cyber attacks and they are becoming more sophisticated as
the attacks occur in multiple layers.

CHANGE IN RISK PROFILE↑CHANGE IN OPPORTUNITY PROFILE

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.

↑In 2021, there was no change in opportunity profile.

Risk mitigation
Umicore protects its data for confidentiality, availability and integrity.

Risk description
Umicore’s production plants and services are highly dependent on
the availability of IT services. Cybersecurity includes our hardware,
software and information protection. Due to cyber incidents,
Umicore’s servers or network could be blocked and data breaches
could jeopardize the confidentiality of our data. Unavailability ofservices, disruption of the supply chains or interruption of our
production facilities due to cyber-attacks could have a major impact

Umicore has put in place in-service training sessions for our
employees about phishing and all employees are part of a mobile
device management platform to protect Umicore’s applications anddata. In 2021, Umicore launched the ‘I stay alert campaign’ on eight
topics, including general topics such as confidential informationand clean desk for all employees as well as topics such as trade
secrets, social engineering and HR security for a specific target group

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104

of employees. The materials for these awareness campaigns willremain available and a training package is being developed.
Umicore regularly continues to assess and improve its information
security, and the state of cyber resilience of its IT landscape, against
evolving threats. A security operation center analyzes the logs ofthe systems and warns us of any suspicious movement. We haveourselves tested by ethical hackers and scan all our hardware andsoftware to exclude technical vulnerability.
A security roadmap is being implemented which includes projects in
preparation for an ISO/IEC 27001:2013 certification. We have passed
the internal audit and the external audit has been conducted. When
Umicore passes that audit, certification would be granted in the firsthalf of 2022.
Third party expert security assessments are conducted, and both thecorporate cyber security team and the corporate security department
are being expanded. Umicore consistently increases its investments
in security-related IT systems and applications 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.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

7 Talent attraction and retention

LINK TO MATERIAL TOPICS

Employee Engagement
Employee Health, Safety & Wellbeing
Sustainability Governance
CHANGE IN RISK PROFILE↑CHANGE IN OPPORTUNITY PROFILE↑

Employee safety impacts the employees, their families and ouroperations. Employee wellbeing is key to both employee retention
and recruitment.
Talent management poses a medium to long term risk. In a worldof growing digitalization, there is a need to change the mindsets.
New competencies need to be acquired as quickly and efficiently as
possible and if we cannot offer these, it may be more difficult toengage and retain our employees. Umicore aspires to have an agile
workforce, so we can adapt and quickly respond to change – keyelements of maintaining a competitive advantage.
Umicore’s efforts to strengthen diversity and inclusion are an
opportunity both for the Group and to increase our impact
on society. Umicore goes beyond gender diversity and createsawareness with our focus on diversity of thought. As a growing
company, we are looking to recruit more employees and thus create
more employment around our production sites.

Risk profile
Risk description
The attraction and retention of skilled people are important factors
in enabling Umicore to fulfil its strategic ambitions and to build
further expertise, knowledge and capabilities in the business. This
represents Umicore’s most important risk, because being unable to
do so would compromise our ability to deliver on our goals in the
short, medium and long term.
Umicore’s main short term risk remains linked to keeping our
employees healthy during the coronavirus pandemic. On-site
COVID-19 infections were kept to a minimum and no production
site was closed in 2021. We will also have to recruit new employees
due to a big wave of retirements at some production sites in the
coming years.
In the medium term, Umicore is faced with the challenge of ensuringa safe working environment in an industrial operation combinedwith a deep need to foster and operationalize a new safety culture.

The risk profile of talent attraction and retention remains unchanged.
The war for talent is still very real. At the same time, the short-termrisk linked to the coronavirus pandemic has decreased, because there
is a slowdown in people leaving the organization looking for stability
due to the pandemic.
As Umicore is growing, our opportunity profile is increasing.
Recruiting more people generates more opportunities to boost
diversity in the company’s workforce.

Risk mitigation
Employer branding campaigns, pro-active sourcing and reinforced
recruitment teams are some of the initiatives we take to mitigate ourmain risk of talent attraction and retention. We have reinforced talentmanagement structures, both globally and regionally, to provide
sufficient internal mobility opportunities for managers and retention
actions for operators. Employee wellbeing is a strategic priority.

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105

In response to the COVID-19 pandemic, all prevention measures weretaken. Employees respected distances, CO2 monitoring devices were
installed in workplaces (meeting rooms, offices, control rooms etc.),
ventilation systems were checked and where needed improved,
working from home was possible and masks were recommended,
including when this was not mandatory. The situation is monitored
globally by a dedicated CEO-led task force – with a focus on protecting
employees’ health.
Following the Umicore’s Group EHS Guidance Note, units andsites identify occupationally linked health and safety hazards
and risks. Workplace injuries and occupationally related healthsymptoms are thoroughly investigated, reported and discussed at
the site’s safety committee. This information contributes to the
set-up, maintenance and, where needed, improvement of a healthand safety management system with the aim of preventing all
workplace-related injuries and health symptoms.
A process safety management system is deployed on all sites
following strict process risk analysis and risk reduction methods.
Regular internal health and safety audits evaluate the quality of
the implementation.
We are improving the company culture in our production site in
Hoboken, to mitigate our safety risk. Active leadership programs
are in place to stimulate engagement on all levels and measuresendorsed by the shop floor are implemented. Safety programs focus
on behavioral aspects, improvement of equipment and processes,
administrative measures and include in-service training.
In the chapter Employees, many initiatives and programs illustrate
how Umicore is mitigating the risks linked to talent management andhow we are developing our diversity of thought.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

8 Climate and environment

LINK TO MATERIAL TOPICS

Climate & Environment
Innovation
Sustainability Governance
Waste
Water
CHANGE IN RISK PROFILE↑CHANGE IN OPPORTUNITY PROFILE↑

Risk description
In the short term, many of the climate and environmental risks
are either regulatory or linked to the impact of our operations on
the environment. Increasingly stringent regulations on energy use
and emissions can induce higher operational costs and our license
to operate is predicated on managing the impact of our operationsin the communities where we operate. Any incident in a plant canaffect emissions in air or water and increase noise, impacting theimmediate residential surroundings – which is in fact a risk on any
time horizon. There is also an environmental risk linked to theshipment of materials. Many of the materials Umicore processes,
such as scrap and residues, are classified as dangerous goods andmaritime and air transport are increasingly reluctant to ship thishazardous material. The scarcity of transport could impact Umicore’s
operational efficiency. There is also an impact on society, as aleakage of hazardous materials during transport could have negative
consequences for the environment and for people’s health.

In the medium term, Umicore experiences the market risk ofincreasing requirements for carbon footprint of products andprocesses. Increasing requirements for environmental impacts suchas biodiversity and land use could represent a risk and the rising costof water is a risk in the medium and long term, as well as access torenewable energy, which is both a risk and an opportunity.
The consequences of climate change are the main long-term risk
for Umicore.
Umicore has conducted climate-related risk analyses with thesupport of external providers ERM and PwC. Scenarios were chosen
for relevance to Umicore and to represent the entire spectrum of
possible future worlds, from Paris-aligned, through business as usual,to strongly increased physical risks. Short term is defined as until
2025, medium term until 2030 and long term after 2030.
In 2021, Umicore conducted a climate-related transition risks scenario
analysis of a 1.8°C scenario (RCP2.6, Paris-aligned) and a 3.0°C
scenario (RCP4.5), based on the IEA ETP and WEO 2020 reports, for
our own operations with a timeframe of 10 and 30 years. Umicore’s
climate-related transition risks and opportunities could be market,
reputation, policy & legal and technology related.
Based on our qualitative scenario analysis, in a 1.8°C scenario,
Umicore has a transition risk in the automotive catalysts business as
demand for catalysts will be impacted given the foreseen declining
demand for cars with internal combustion engines. Most otherUmicore product lines, e.g. rechargeable battery materials, fuel cells
and recycling services, show transition opportunities in both the 1.8°C
and 3.0°C scenarios, the degree of which is linked to the pace ofthe shift towards electric mobility. The impact of these scenarios is
described in the Market risk.
For the climate-related physical risk analysis, we chose the 3.0°C
scenario (RCP4.5) and the worst-case climate change scenario(RCP8.5) until 2050 in which we identified both chronic and acutephysical risks.

106

For both climate-related physical risk scenarios, climate change
causes extreme natural events, chronic deviations in temperaturesand precipitation patterns, and rising sea levels. This could impact oursites or supply chain: for example, Flanders, which is an area where
Umicore has several production sites, has been declared an area inrisk of drought. Umicore’s main physical risks are related to flooding
and water availability.

Risk profile
The climate and environmental risks from a regulatory or operational
point of view remained the same.
The opportunity profile has increased, because lower carbon
footprint products in the clean air, e-mobility and recycling sectors
are in high demand from customers. The ongoing transition toa lower carbon economy continues to present Umicore with
opportunities to expand and develop processes in ways that can
mitigate or address climate change and environmental risks.

Risk mitigation
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, and ourclosed 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 the metals we process come from secondary
sources – production scraps, residues and end-of-life materials. We
can also recycle customers’ residues and production scrap to help
them maximize their material efficiency and then transform therecovered materials into new products. In total we recover 28
metals from our closed loop activities and we continue to adapt
our processes to recycle new and more complex end-of-life products.
As described in the Regulatory and legal context and in Environment,
we are mitigating the risk concerning the environmental permit in
Hoboken. Umicore’s recycling activity is the best mitigation to climate

Umicore Strategy Performance Leadership Statements About Glossary Backcoverchange, because recycling metals emits less greenhouse gases thanmining metals.
To mitigate the impact of our operations, Umicore keeps to themost stringent environmental standards for air and water and works
every year to improve our energy efficiency and environmental
footprint despite our growth and increased production. Umicore
also manages its historical environmental legacy, ensuring adequate
financial provisions are in place, which are reviewed twice a year. For
more information, see Environment.
To address the market risk of increasing requirements for the carbon
footprint of products and processes, Umicore performs life cycle
assessments on selected products and services on a rolling andongoing basis to sharpen insight on environmental performance,
through the right choice of the chemistry, energy mix, and raw
materials, including recycled materials. Umicore maps its sites inwater stress areas and keeps track of water types and consumption to
mitigate our risk with respect to water availability and rising costs ofwater. Our Procurement & Transportation department is purchasing
renewable energy worldwide. These opportunities are increasing in
all regions where Umicore operates.
Umicore supports the recommendations of the Task Force on Climate­
Related Financial Disclosures (TCFD) and while full alignment withall recommendations will take more than one reporting cycle,
we intensified our analysis in the past year. In 2019, we started
with an analysis of physical risks and in 2021, we conducted aqualitative transition risk scenario analysis. The results of the TCFD
recommended qualitative scenario analysis were discussed with the
management board in 2021. Next steps in our TCFD implementation
roadmap including quantifying financial impacts from climate risks
and integration into our risk management system.
Umicore’s businesses, strategy and financial planning reflect many
climate-related risks and opportunities. Our global footprint anddiverse site locations reduce our exposure to physical risks. New
sites have been chosen considering proximity to customers, access to
skilled workforce, excellent logistics, infrastructure and green energy.
The focus of our products and services, our investments in R&D

and operational excellence, our policies for collaboration with our
suppliers and the objectives in our ‘Let’s go for zero’ strategy area few examples of these strategic choices. They are increasingly
embedded in our ongoing financial planning and decision making
through their integration in the BU budgeting process and thedevelopment of the ESG dashboard. In 2021, we conducted an
upskilling for members of the management board focusing on TCFD
reporting and climate scenario analysis. Further analysis is planned
and will be repeated or refined on a recurring basis to identify risks
based on current scientific findings.

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107

Umicore Integrated Annual Report 2021

Statements

108

Umicore Integrated Annual Report 2021

Financial statements
Consolidated income statement

110

F12 Income from other financial investments

140

F29 Environmental provisions

161

Consolidated statement of comprehensive income

111

F13 Income taxes

141

F30 Provisions for other liabilities and charges

162

Consolidated balance sheet

112

F14 Intangible assets other than goodwill

142

F31 Capital employed

163

Consolidated statement of changes in equity

113

F15 Goodwill

143

F32 Financial instruments by category

164

Consolidated statement of cash flow

114

F16 Property, plant and equipment

144

F33 Fair value of financial instruments (derivatives)

169

Notes of the financial statements

115

F17 Investments accounted for using the equity method

146

F34 Notes to the cash flow statement

173

F1

Basis of preparation

115

F18 Financial assets at fair value through oci and146

F35 Off-balance sheet rights and commitments

174

F2

Accounting policies

115

F36 Contingencies

175

F3

Financial risk management

125

F19 Inventories

147

F37 Related parties

175

F4

Critical accounting estimates and judgments

129

F20 Trade and other receivables

147

F38 Events after the reporting period

176

F5

Group companies

131

F21 Tax assets and liabilities

149

F39 Earnings per share

176

F6

Foreign currency measurement

132

F22 Net cash and cash equivalents

150

F40 IFRS developments

177

F7

Segment information

133

F23 Currency translation differences and other reserves

151

F41 Auditors’ remuneration

177

F8

Business combinations and acquisitions of associates

136

F24 Financial debt

152

Parent company separate summarized

F25 Trade debt and other payables

153

financial statements

136

F26 Liquidity of the financial liabilities

155

Management responsibility statement

F10 Payroll and related benefits

139

F27 Provisions for employee benefits

157

F11 Finance cost – net

140

F28 Stock option plans granted by the company

161

and joint ventures
F9

Result from operating activities

loans granted

178

180

109

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

110

Consolidated income statement
Thousands of Euros

Notes

2020

2021

TurnoverF9

20,710,116

24,054,439

Other operating income

F980,602

176,919

20,790,718

24,231,358

Operating income
Raw materials and consumables

F9

Payroll and related benefits

F10(798,481)(853,140)

Depreciation and impairments

F9(362,496)(338,777)

Other operating expenses

F9(506,587)(517,313)

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

RESULT FROM OPERATING ACTIVITIES

761

1,156

304,592

878,938

Financial income

F11

4,044

13,904

Financial expenses

F11(77,802)(80,716)

Foreign exchange gains and losses

F11(30,445)(23,480)

Share in result of companies accounted for using the equity method

F17(5,332)

17,347

195,057

805,993

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

PROFIT (LOSS) FROM CONTINUING OPERATIONS

F13

135,927

626,949

Profit (loss) of the period

135,927

626,949of which minority share

5,397

7,990

of which Group share

130,530

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

F39

0.54

2.57

Diluted earnings per share from continuing operations

F39

0.54

2.56

0.25

0.75

Dividend pay-out per share

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

The notes F1(p. 115) through Parent company separate summarized financial statements(p. 178) are an
integral part of these consolidated financial statements.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Consolidated statement of comprehensive income
Thousands of Euros

Notes

Profit (loss) of the period from continuing operations

2020

2021

135,927

626,949

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

46,007

7,258(11,838)

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

Changes in cash flow hedge reserves

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

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

F23(122,257)

86,663(130,525)

166,796

5,402

793,745of which Group share

2,952

784,177of which minority share

2,450

9,568

The deferred tax impact on the consolidated statement of comprehensive income is due to changes in the
cash flow hedge reserves for € -19.8 million and in the employee benefit reserves for € -11.8 million.
The notes F1(p. 115) through Parent company separate summarized financial statements(p. 178) are an
integral part of these consolidated financial statements.

111

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Umicore Strategy Performance Leadership Statements About Glossary Backcover

112

Consolidated balance sheet
31/12/2020

31/12/2021

Thousands of Euros

31/12/2020

31/12/2021

2,895,694

3,102,769

Equity of the Group

2,621,856

3,167,274

F14, F15

346,888339,848

Group shareholders' equity

2,557,182

3,112,882

Property, plant and equipment

F16

2,163,660

2,351,133

Share capital and premiums

1,384,273

1,384,273

Investments accounted for using the equity method

F17

139,839

155,140

Retained earnings

1,749,655

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

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

Minority interest

64,67454,392

2,359,901

2,398,400

Thousands of Euros

Notes

Non-current assets
Intangible assets

Financial assets at fair value through Other
Comprehensive Income

F18

Loans granted

8,352

14,120

F18

3,252

2,608

Trade and other receivables

F20

11,765

20,672

Deferred tax assets

F21

Current assets

221,938

219,248

5,445,199

5,942,472

Loans granted

F18

80

169

Inventories

F19

2,718,092

2,869,071

Trade and other receivables

F20

1,677,167

1,832,033

Income tax receivables

F21

39,553

46,762

Cash and cash equivalents

F221,010,307

1,194,437

8,340,893

9,045,241

TOTAL ASSETS

Currency translation differences and other reserves

Notes

F23

Non-current liabilities
Provisions for employee benefits

F27

426,356

387,206

Financial debt

F24

1,705,154

1,724,037

Trade and other payables

F25

23,50547,361

Deferred tax liabilities

F21

22,84624,294

F29, F30

182,040

215,5023,359,136

3,479,567

Provisions
Current liabilities
Financial debt

F24

719,177

430,847

Trade and other payables

F25

2,418,929

2,807,966

F21

160,734

197,488

F29, F30

60,29643,266

8,340,893

9,045,241

Income tax payable
Provisions
TOTAL EQUITY & LIABILITIESThe notes F1(p. 115) through Parent company separate summarized financial statements(p. 178) are an
integral part of these consolidated financial statements.

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Umicore Strategy Performance Leadership Statements About Glossary Backcover

113

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

Share capital & premiums

Reserves

Currency translation &other reserves

Treasury shares

Minority interest Total for continuing operations

1,384,273

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

66,997

Result of the period-

130,530

-

-

5,397

135,927

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

Total comprehensive income for the period-

130,530(127,578)

-

2,450

5,402

Changes in share-based payment reserves--

10,108--

10,108

Convertible Bond - conversion rights*--

37,743--37,743

Capital increase

-

-

-

-

27

27

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

Transfers-

917(3,645)

2,727

-

-

Changes in treasury shares

-

-

-

(26,947)-(26,947)

Changes in scope

2,660,464

-

-

-

-

-

-

1,384,273

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

64,674

2,621,856

Result of the period-

618,959

-

-

7,990

626,949

Other comprehensive income for the period--

165,218-

1,578

166,796

Total comprehensive income for the period-

618,959

165,218-

9,568

793,745

Changes in share-based payment reserves--

14,255--

14,255

Convertible Bond - conversion rights*

-

-

-

-

-

-

Capital increase

-

-

-

-

-

-

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

Transfers

-

1,137

(5,904)

4,767

-

-

Changes in treasury shares

-

-

-

(22,159)-(22,159)

BALANCE AT THE END OF 2020

Changes in scope
BALANCE AT THE END OF 2021-

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

1,384,273

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

54,392

3,167,274

The legal reserve of €55.0million which is included in the retained earnings is not available for distribution. The share capital of the Group as at 31 December 2021 was composed of 246,400,000 shares with no par value.
*The conversion rights embedded in the € 500 million convertible bond issued on 23 June 2020 were valued at € 37.7 million net of transaction costs and deferred taxes. This value according to IFRS rules will not
be remeasured over time, nor at conversion nor at maturity.
The change in scope movements over the year are mainly related to the squeeze-out to acquire the remaining 8.8 % of the shares in Agosi (Allgemeine Gold- und Silberscheideanstalt AG, Germany) for € 53.9 million.
The notes F1(p. 115) through Parent company separate summarized financial statements(p. 178) are an integral part of these consolidated financial statements.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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Consolidated statement of cash flow
Thousands of Euros

Notes

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

F34

Adjustments for items to disclose separately or under investing andfinancing cashflows

F34

Change in working capital requirement

F34

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

2021
626,949

Capital increase (decrease) minority

5,332(17,347)

Own shares

449,022399,936

Payment of lease liabilities

116,051

228,573(103,756)

167,154602,576

1,405,265

2,026

5,018

(78,955)(174,990)

2,673

23,287F34528,320

1,258,580

Acquisition of property, plant and equipment

F16(391,475)(379,572)

Acquisition of intangible assets

F14(44,060)(36,854)

Acquisition of new subsidiaries, net of cash acquired

F8

(156)

-

-

(53,870)

NET OPERATING CASHFLOW

Acquisition in additional shareholdings in subsidiaries
Acquisition of financial assets

F18(1,633)(5,014)

New loans extended

F18

(752)

(170)

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

Disposal of property, plant and equipment

1,475

1,994

Disposal of intangible assets

6,620

623

518

1,417

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

F34

Thousands of Euros

2020
135,927

8,613

4,034

(429,463)(471,446)

Notes

F24

Interest received
Interest paid
New loans and repayments

2021

27

-

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

3,392

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

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

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

638,076(602,367)

NET CASHFLOW GENERATED BY (USED IN) FINANCING ACTIVITIES

F24

2020

F34

Effect of exchange rate fluctuations

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

762,399

164,686

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

F22239,230

1,001,630

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

F22

1,001,630

1,166,316

1,010,307

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

The notes F1(p. 115) through Parent company separate summarized financial statements(p. 178) are an
integral part of these consolidated financial statements.

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Umicore Strategy Performance Leadership Statements About Glossary Backcover

115

Notes of the financial statements
The company’s consolidated financial statements and the management report prepared in accordancewith article 3:33 of the Belgian Companies and Associations Code set forth in the sections labelled Aboutus(p. 5) through Management Responsibility Statement(p. 180) for the year ended 31 December 2021 wereauthorized for issue by the Supervisory Board on 11 March 2022. They have been prepared in accordancewith the legal and regulatory requirements applicable to the consolidated financial statements of Belgiancompanies. They include those of the company, its subsidiaries and its interests in companies accounted
for using the equity method.

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

F2 Accounting policies
2.1 Principles of consolidation and segmentation
2.1.1 Subsidiaries

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

Umicore Integrated Annual Report 2021

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

2.1.2 Changes in ownership interests in subsidiaries without change of control

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

2.1.3 Disposal of subsidiaries

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

2.1.4 Associates

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

116

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

2.1.5 Joint arrangements

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

2.1.6 Segment reporting

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

Umicore Integrated Annual Report 2021

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

2.2 Inflation accounting

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

2.3 Foreign currency translation

Functional currency: items included in the financial statements of each entity in the Group are measured
using the currency that best reflects the economic substance of the underlying events and circumstances
relevant to that entity. The consolidated financial statements are presented in euros which is thefunctional currency of the parent. To consolidate the Group and each of its subsidiaries, the financial
statements are translated as follows:117● Assets and liabilities at the year-end rate as published by the European Central Bank.
● Income statements at the average exchange rate for the year.
● The components of shareholders’ equity at the historical exchange rate.
Exchange differences arising from the translation of the net investment in foreign subsidiaries, joint
ventures and associated entities at the period-end exchange rate are recorded as part of the shareholders’equity under “currency translation differences”.
When a foreign operation is partially disposed of or sold, exchange differences that were recorded inequity are recognized in the income statement as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as local
currency assets and liabilities of the foreign entity and are translated at the closing rate.

2.4 Foreign currency transactions

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

2.5 PROPERTY, PLANT AND EQUIPMENT

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

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Umicore Strategy Performance Leadership Statements About Glossary Backcover118

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

years
Land

Non-depreciable

Buildings- Industrial buildings

20- Improvements to buildings

10- Offices and laboratories

40

Plant, machinery and equipment

10- Furnaces

7- Small equipment

5

Furniture and vehicles- Vehicles- Mobile handling equipment

5
7- Computer equipment

3-5- Furniture and office equipment

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

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

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

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

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

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

2.6.2 Goodwill

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

2.6.3 Research and development

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

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Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

2.6.4 CO2 emission rights

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

2.6.5 Other intangible assets

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

119

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

2.7 Lease

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

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

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

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Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

2.9 Inventory

Inventories are classified as:
1. Base products (gross values)a. Permanently tied up metal inventories (not hedged)b. Commercially available metal inventories (hedged)c. Other base products inventories (not hedged)
2. Consumables (gross values)
3. Write down and impairments
4. Advances paid
5. Contracts in progress120● On the commercially available metal inventories : These inventories are economically hedged. For thepart of the inventory where Umicore obtained IFRS 9 Fair Value hedge accounting, Umicore applies
the mark-to-market valuation principles. When IFRS 9 Fair Value hedge accounting cannot be obtained(see note F2.21.1 transactional risks – fair value hedging), LOCOM (lower of cost or net realizable value,
meaning the estimated selling price less the estimated costs of completion and the estimated cost
necessary to make the sale) is applied.
● On the other Base products, LOCOM and slow moving principles are applied. Any write-downs booked
are classified under the caption Write downs & Impairments.
Consumables (gross values) are products that are not used in a direct way in the manufacturing
processes (for example: packaging material). They are valued using the weighted-average cost method
and are submitting to LOCOM. Any write-downs booked are classified under the caption Write downs& Impairments
Write-downs & Impairments are any impairments or write downs booked on the Base products andConsumables are captured under this line item.

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

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

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

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

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

2.10 Trade and other receivables

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

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

2.11 Cash and cash equivalents

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

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

2.14 Minority interests

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

2.15 Provisions

Provisions are recognized in the balance sheet when:

2.12 Impairment of non-financial assets

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

2.13 Share capital and retained earnings

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

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

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

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

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Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

2.15.3 Other Provisions

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

2.16 Employee benefits

2.16.1 Short-term employee benefits

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

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

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

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

2.16.2 Post-employment benefits (pensions, medical care)

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

2.16.3 Other long-term employee benefits (jubilee premiums)

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

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

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

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Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

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

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

2.18 Trade and other payables

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

2.16.6 Presentation

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

2.17 Financial liabilities

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

2.19 Income taxes

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

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

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

Umicore Strategy Performance Leadership Statements About Glossary Backcover124

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

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

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

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

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

2.20 Revenue recognition

2.20.1 Revenue recognition from contracts with customers

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

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

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

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

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

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

2.21 Financial instruments

2.20.2 Government grants

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

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

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2.21.1 Transactional risks – fair value hedging

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

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

2.21.2 Structural risks – cash flow hedging

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

125

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

2.21.3 Embedded derivatives

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

2.22 Adjustments

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

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

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3.1 Currency risk

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

3.1.1 Structural risk

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

126

3.1.2 Transactional risk

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

3.1.3 Translational risk

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

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

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

3.2 Metal price risk

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

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

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

3.2.1 Structural risk

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

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

127

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

3.2.3 Metal inventory risk

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

3.2.2 Transactional risk

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

3.3 Interest rate risk

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

3.4 Credit risk

Credit risk and concentration of credit risk

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

3.5 Liquidity risk

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

3.6 Tax risk

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

128

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

3.7 Capital risk management

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

3.8 Strategic and operational risks

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

3.9 COVID-19 related risks

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

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

4.1 Impairment testing

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

129

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

4.2 Rehabilitation obligations

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

4.3 Defined benefit obligations

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

4.4 Recovery of deferred tax assets

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

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

4.5 Provisions for other liabilities and charges

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

4.6 Provisions for uncertainty over income tax treatments

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

Umicore Integrated Annual Report 2021

130

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverF5 Group companies% interest in

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

131% interest in

2020

2021

FranceUmicore France S.A.S.

100.00100.00-Umicore IR Glass S.A.S.

100.00100.00% interest in% interest in-

Umicore Autocat France S.A.S.

100.00100.00

2020

2021

-

Umicore Specialty Powders France S.A.S.

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

100.00100.00-Todini France S.A.S.

100.00100.00Germany

Umicore AG & Co. KG (*)

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

91.21

0.00

-

Agosi AG (**)

100.00100.00-Umicore Galvanotechnik GmbH

91.21

100.00-Todini Deutschland GmbH

100.00100.00-Umicore Shokubai Germany GmbH

60.00

60.00

Italy

Todini and CO. S.P.A.

100.00100.00India

Umicore Autocat India Pvt LTD

100.00100.00-Umicore India Private Limited

100.00100.00-Todini Metals and Chemicals India Private Limited

70.00

70.00

Japan

Umicore Japan KK

100.00100.00-Umicore Shokubai Japan Co Ltd

60.00

60.00

South Korea

Umicore Korea Ltd.

100.00100.00-Umicore Marketing Services Korea Co., Ltd.

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

100.00100.00Liechtenstein

Umicore Thin Film Products AG

100.00100.00

Luxemburg

Umicore International

100.00100.00-Umicore Autocat Luxembourg

100.00100.00-Umicore Shokubai

60.00

60.00

MexicoTodini Atlántica S.A. de C.V.

70.00

70.00

Netherlands

Schöne Edelmetaal BV

91.21

100.00Philippines

Umicore Specialty Chemicals Subic Inc.

78.20

78.20

PolandUmicore Autocat Poland sp. z o.o.

100.00100.00For continuing operations
Argentina

Umicore Argentina S.A.

100.00100.00Australia

Umicore Marketing Services Australia Pty Ltd.

100.00100.00Austria

Oegussa GmbH

91.29

100.00Belgium

Todini (BE 0834.075.185)

100.00100.00-Umicore Financial Services (BE 0428.179.081)

100.00100.00-Umicore Marketing Services Belgium (BE 0402.964.625)

100.00100.00-Umicore Specialty Materials Brugge (BE 0405.150.984)

100.00100.00-Umicore Holding Belgium (BE 0731.571.921)

100.00100.00BrazilCoimpa Industrial Ltda

100.00100.00-Umicore Brasil Ltda

100.00100.00-Clarex S.A.

100.00100.00-Umicore Shokubai Brasil Industrial Ltda

60.00

60.00

-

Umicore Catalisadores Ltda.

100.00100.00

CanadaUmicore Canada Inc.

100.00100.00-Umicore Autocat Canada Corp.

100.00100.00-Umicore Precious Metals Canada Inc.

100.00100.00China

Umicore Marketing Services (Shanghai) Co., Ltd.

100.00100.00-Umicore Marketing Services (Hong Kong) Ltd.

100.00100.00-Umicore Autocat (China) Co. Ltd.

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

80.00

80.00

-

Jiangmen Umicore Changxin New Materials Co., Ltd.

90.00

90.00

-

Umicore Shokubai (China) Co Ltd

60.00

60.00

-

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

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

100.00100.00DenmarkUmicore Denmark ApS

100.00100.00Finland

Umicore Finland OY

100.00100.00Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover% interest in% interest in

2020

2021

-

Todini Europe sp. z o.o.

70.00

70.00

-

Umicore Poland Sp. z o.o.

100.00100.00PortugalUmicore Marketing Services Lusitana Metais Lda

100.00100.00South Africa

Umicore Marketing Services Africa (Pty) Ltd.

100.00100.00-Umicore Catalyst South Africa (Pty) Ltd.

65.00

65.00

Spain

Todini Quimica Ibérica, S.L.

100.00100.00SwedenUmicore Autocat Sweden AB

100.00100.00

Switzerland

Allgemeine Suisse SA

91.21

100.00

TaiwanUmicore Thin Film Products Taiwan Co Ltd

100.00100.00ThailandUmicore Precious Metals Thailand Ltd.

91.21

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

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

60.00

60.00

United Kingdom

Umicore Coating Services Ltd.

100.00100.00-Umicore Marketing Services UK Ltd

100.00100.00USA

Umicore USA Inc.

100.00100.00-Umicore Autocat USA Inc.

100.00100.00-Umicore Precious Metals NJ LLC

100.00100.00-Umicore Precious Metal Chemistry USA LLC

100.00100.00-Umicore Precious Metals USA Inc.

100.00100.00-Umicore Optical Materials USA Inc.

100.00100.00-Umicore Shokubai USA Inc

60.00

60.00

-

Palm Commodities International

100.00100.00-Umicore Electrical Materials USA Inc.

100.00100.00-Umicore Catalyst USA, LLC

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

132

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

2020

2021

2020

2021

American Dollar

USD

1.227

1.133

1.142

1.183

UK Pound Sterling

GBP

0.899

0.840

0.890

0.860

Canadian Dollar

CAD

1.563

1.439

1.530

1.483

Swiss Franc

CHF

1.080

1.033

1.071

1.081

Japanese Yen

JPY126.490130.380

121.846129.877

Brazilian Real

BRL

6.377

6.320

5.889

6.381

South African Rand

ZAR

18.02218.06318.76517.477

Chinese Yuan

CNY

8.023

7.195

7.875

7.628

Thai Baht

THB

36.72737.65335.70837.837

Korean Won (100)KRW

13.36013.46413.456

13.541

Polish Zloty

PLN

4.560

4.597

4.443

4.565

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover133

F7 Segment information

BUSINESS GROUP INFORMATION 2020
Catalysis

Energy & Surface Technologies

Recycling

Corporate & UnallocatedEliminations

Total Continued

Total segment turnoverThousands of Euros

Notes

5,916,870

2,811,050

13,903,640

25,676(1,947,120)

20,710,116

External turnover

5,783,840

2,750,410

12,150,190

25,676-

20,710,116

133,030

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

Total segment revenues (excluding metals)

1,364,210

1,045,040

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

External revenues

1,362,640

1,044,940

831,140--

3,238,720

1,570

100

4,860

-

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

310,900(61,528)-

304,592

Inter-segment turnover

Inter-segment revenues
Operating result

F9

Adjusted

153,688

70,422361,815(57,894)-

528,030

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

-

4,874

-

(10,206)-

Adjusted

-

4,874

-

3,457

-

8,331

Adjustments

-

-

-

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

EBIT

F996,338(36,244)

310,900(71,734)-

Adjusted

153,688

75,295361,815(54,437)-

536,361

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

80,496

110,457

62,94914,040-267,941

80,496

110,457

62,94914,040-267,941

176,834

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

234,184

185,752

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

Consolidated total assets

3,447,098

3,376,191

1,643,894

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

8,340,892

Segment assets

3,447,098

3,337,762

1,643,894

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

8,201,054-

38,429-101,410-

139,839

1,814,687

1,260,177

1,215,316

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

5,719,038

Depreciation and amortisation

F9

F9

Adjusted
EBITDA

F9

Adjusted

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

F31

1,536,950

2,323,770

405,422

175,849-

4,441,991

Capital Employed at 30/06

F311,560,188

2,189,523

578,205

124,696-

4,452,611

Capital Employed at 31/12

F311,727,443

2,133,138

446,861

149,138-

4,456,580

Average Capital Employed in first half year

F31

1,548,569

2,256,646

491,813150,273-

4,447,301

Average Capital Employed in second half year

F31

1,643,815

2,161,330

512,533

136,917-

4,454,596

Average Capital Employed in the year

F31

1,596,192

2,208,988

502,173

143,595-

4,450,948

ROCE

F31

9.63%

3.41%

72.05%-37.91%

0.00%

12.05%

Capital expenditure

F34

63,798

251,688

71,577

16,105-403,169

Total R&D expenditureF9

138,742

58,26910,186

15,766-

222,964

R&D recognized in operating expenses

F9

125,275

43,636

10,186

11,499-190,596

R&D capitalized as intangible assets

F34

13,468

14,633

-

4,267

-

32,368

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover134

BUSINESS GROUP INFORMATION 2021
Thousands of Euros

Notes

Catalysis

Energy & Surface Technologies

Recycling

Corporate & UnallocatedEliminations

Total Continued

Total segment turnover

8,154,850

3,533,830

15,609,350

34,849(3,278,440)

24,054,439

External turnover

7,989,680

3,478,360

12,551,550

34,849-24,054,439

165,170

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

Total segment revenues (excluding metals)

1,687,430

1,173,660

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

External revenues

1,685,690

1,173,420

1,104,200--

3,963,310

1,740

240

3,940

-

(5,920)-307,811

132,841

528,640(90,355)-

878,938

Adjusted

326,365

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

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

-

7,659

-

9,688

-

17,347

Adjusted

-

7,659

-

12,884-

20,543Adjustments

-

-

-

(3,197)-(3,197)

307,811140,500

528,640(80,668)-

896,284

Adjusted

326,365

139,181572,927(67,097)-

971,377

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

14,811-

279,526

75,229122,61366,921

14,811-

279,576F9382,991

263,114595,562(65,856)-

1,175,810

Inter-segment turnover

Inter-segment revenues
Operating result

Equity method companies

EBIT

Depreciation and amortisation

F9

F9

F9

Adjusted
EBITDA
Adjusted

401,595

261,795

639,848(52,286)-

1,250,952

Consolidated total assets

3,356,473

4,364,500

1,426,498

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

9,045,241

Segment assets

3,356,473

4,316,864

1,426,498

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

8,890,101-

47,636-

107,504-

155,140

1,858,320

2,075,177

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

5,877,967

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

F31

1,727,443

2,133,138

446,861

149,138-

4,456,580

Capital Employed at 30/06

F31

1,846,061

2,191,046

236,82977,507-

4,351,443

Capital Employed at 31/12F311,551,494

2,275,465

460,723

89,213-

4,376,895

Average Capital Employed in first half year

F31

1,786,752

2,162,092

341,845

113,323-

4,404,011

Average Capital Employed in second half year

F31

1,698,778

2,233,255

348,776

83,360-4,364,169

Average Capital Employed in the year

F31

1,742,765

2,197,674

345,310

98,341-

4,384,090

ROCE

F31

18.73%

6.33%

165.92%-68.23%0.00%

22.16%

Capital expenditure

F34

70,052

218,674

83,097

16,774-

388,596

Total R&D expenditure

F9141,592

63,518

13,16426,939-245,213

R&D recognized in operating expenses

F9

132,726

49,903

13,164

21,590-217,383

R&D capitalized as intangible assets

F34

8,867

13,614

-

5,349

-

27,830Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverSegment information is presented in respect of the Group’s business segments as defined below.

GEOGRAPHICAL INFORMATION 2020
Thousands of Euros

Notes

Europeof which
Belgium Asia-PacificNorth
AmericaSouth
America

AfricaTotal

Total segment turnover

11,115,296

156,181

5,016,465

3,881,278

561,411

135,667

20,710,116

Total non current assets

1,389,895

564,209

1,109,045

112,075

45,5904,726

2,661,333

274,403

100,914104,880

8,829

14,750306

403,169

Employee compensation& benefits

573,311317,820

124,557

72,255

20,1398,220

798,481

Income taxes

44,445596

1,776(6,601)

16,447

3,064

59,131

Capital expenditure

F34

Notes

Total segment turnoverEuropeof which
Belgium Asia-PacificNorth
AmericaSouth
America

AfricaTotal

3,761,205 1,010,605

183,991

24,054,439

12,676,355

213,0036,422,284

1,487,101

592,688

1,200,470

122,993

51,2294,283

2,866,076

253,053

102,104

108,851

16,984

9,213

496

388,596

Employee compensation& benefits

613,163

329,680

138,417

71,916

21,4978,147

853,140

Income taxes

88,60342,06640,374

17,44028,5574,070

179,044

Total non current assets
Capital expenditure

F34

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

GEOGRAPHICAL INFORMATION 2021
Thousands of Euros

135

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

BUSINESS GROUPSThe Group is organized into the following reporting segments:

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

ENERGY & SURFACE TECHNOLOGIESThe segment includes the Cobalt & Specialty Materials, Electro-Optic Materials, Metal Deposition Solutions
and Rechargeable Battery Materials business units. Energy & Surface Technologies’ products are found inUmicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcoverapplications used in the production and storage of clean energy and in a range of applications for surface
technologies that bring specific properties and functionalities to end products. All the activities offer aclosed loop service for the customers. This segment includes the associates Ganzhou Yi Hao Umicore
Industries and Jiangmen Chancsun Umicore Industry.

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

136

F8 Business combinations and acquisitions of associates and joint
ventures
There were no business combination during the year 2021.

F9 Result from operating activities
2020

2021

Sales

20,565,648

23,901,842

Services

144,468

152,597

Turnover20,710,116

24,054,439

Re-invoicing of costs to third parties

42,65461,307

Operating grants

19,86526,031

Royalties and license fees

6,168

11,264Emission rights income

5,207

8,945

Insurance recovery

21,58018,406

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

Various interests and penalties for late payments

1,167

880

Gains on disposals of assets

2,647

1,057

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

Tax credit

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

CORPORATE

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

Thousands of Euros

Translation difference on intercos Elimination
Tax incentive
Other
Other operating income

4,247

5,294

-

39,779

2,633

5,318

80,602

176,919

OPERATING INCOME OF CONTINUING OPERATIONS

20,790,718

24,231,358

Raw materials and consumables used

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

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

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

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

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

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

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

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

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

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

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

(996)

(258)

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

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

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

137

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

R&D EXPENDITURE

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

Thousands of Euros

Notes

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

F14

TOTAL R&D EXPENDITURE FORCONTINUING OPERATIONS

2020

2021

190,596

217,383

32,36827,830222,964

245,213

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

ADJUSTMENTS INCLUDED IN THE RESULT
2020
Thousands of Euros

Notes

2021

Total

Adjusted

Adjustments

Total

Adjusted

20,710,116

20,710,116-

24,054,439

24,054,439-

80,602

79,494

1,108

176,919

137,133

39,786

Operating income

20,790,718

20,789,611

1,108

24,231,358

24,191,572

39,786

Raw materials and consumables used

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

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

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

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

761

342

419

1,156

196

959

304,592

528,030(223,438)

878,938

950,833(71,896)

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

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

17,347

20,543(3,197)299,260

536,361(237,101)

896,284

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

567,201

804,302(237,101)

1,175,810

1,250,952

Finance cost

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

9,294

Income taxes

F13(59,131)(102,729)

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

17,266(48,533)

Net result

135,927

329,430(193,503)

626,949

675,482of which minority shares

5,397

7,023

(1,626)

7,990

7,990

-

of which group shares

130,530

322,407(191,877)

618,959

667,492(48,533)

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

138

ADJUSTMENTS PER SEGMENT AND NATURE INCLUDED IN THE RESULT
2020

Thousands of Euros

Total

Catalysis

Energy &SurfaceTechnologies

2021

Recycling

Corporate &Unallocated

Total

Catalysis

Energy &SurfaceTechnologies

Recycling

Corporate &Unallocated

Other operating income

1,108

-

1,108

-

-

39,78630,312

1,877

7,597

-

Operating income

1,108

-

1,108

-

-

39,78630,312

1,877

7,597

-

(37,451)-(37,451)

-

-

-

-

-

-

-

(350)

-

(350)

-

-

(993)

(993)

-

-

-

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

27

(362)

(40,590)(40,406)

-

(185)

-

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

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

419

-

96

-

322

959

-

964

-

(4)

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

Raw materials and consumables used
Payroll and related benefits

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

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

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

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

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

-

-

(272)

Other

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

34,89530,312

1,278

4,439

(1,134)

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

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

F10 Payroll and related benefits

SHARE-BASED PAYMENTS
Thousands of Euros

Thousands of Euros

2020

2021

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

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

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

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

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

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

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

(10,299)(16,893)

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

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

139(42,768)(50,229)(798,481)(853,140)

AVERAGE HEADCOUNT IN CONSOLIDATED COMPANIES

Notes

Date of grant

2020

2021

10-02-2020

11-02-2021
47.47

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

F28

42.05

Share price at the date of grant (France)

F28

NA

NA

Number of stock options granted

F28

1,168,375

1,108,500

Valuation model

Present Economic Value

Assumed volatility (% pa)

25.00

27.50

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

Dividend increase (% pa)

10.00

10.00

Rate of pre-vesting forfeiture (%pa)

NA

NA

Rate of post-vesting leaving (%pa)

7.50

5.00

Minimum gain threshold (% pa)

15.00

15.00

Proportion who exercise given minimum gain
achieved (% pa)

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

6.46

8.56

Total fair value of options granted

7,548

9,489

52.000 shares granted at 42,05 EUR

2,187

-

10.000 shares granted at 37,33 EUR

373-

10.000 shares granted at 49,72 EUR

-

497

2020

2021

Executives and managerial staff

2,009

2,045

52.000 shares granted at 47,08 EUR

-

2,448

Non managers

8,997

8,910

48.500 shares granted at 37,55 EUR

-

1,821

Total for continuing operations

11,006

10,955

Total fair value of shares granted

2,560

4,767

10,10814,255SHARE-BASED PAYMENTS

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

F11 Finance cost – net
Thousands of Euros

2020

2021

Interest income

3,749

12,962

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

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

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

Other financial income

295

942

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

TOTAL OF CONTINUING OPERATIONS

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

140

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

F12 Income from other financial investments
Thousands of Euros

2020

2021

Capital gains and losses on disposal of financial investments

517

946

Dividend income

230

210

Interest income from financial assets

14-

TOTAL FOR CONTINUING OPERATIONS

761

1,156

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

F13 Income taxes
Thousands of Euros

2020

2021

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

Deferred income tax

56,542

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

Result from operating activities

304,592

878,938

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

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

200,390788,646

25.48

24.77

(51,055)(195,312)

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

3,457

303

Dividends from consolidates companies & Associates

(267)

(66)

Income tax expense
Recognized in the income statement

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

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

37

36

Tax incentives and tax holidays

14,563

26,903

Tax computed on other basis(1,657)563

Utilisation of previously unrecognized tax losses

4,349

4,130

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

6,050(6,475)

Change in applicable tax rate

(31)

(300)

Other tax credits (excluding R&D tax credits)

958

1,058

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

Previous years adjustments

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

8,753

TAX EXPENSE AT THE EFFECTIVE TAX RATE FOR THE YEAR

(59,129)(179,044)

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

141Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover142

F14 Intangible assets other than goodwill
Thousands of Euros

Development expenses capitalized

Concessions, patents, licences, etc.

Software

CO2 emission rights

Other intangible assets

Total

At the beginning of previous year
Gross value

151,880

101,229

149,792

19,213

85,216507,329

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

Net book value at the beginning of previous year

53,76854,73026,94919,21359,494

214,154

-

82

40

-

(23)

98

13,784

50

5,404

-

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

-

-

-

697

-

697

(450)

(6)

(346)

(3)

(908)

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

1,422

50

4,401

(0)

(3,186)

2,687

At the end of previous year

38,517

34,707

26,694

15,89875,081

190,897

Gross value

157,704

98,840150,989

15,898103,637

527,068

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

Net book value at the end of previous year

38,517

34,707

26,694

15,89875,081

190,897. additions

8,867

842

1,435

8

25,70236,854. disposals

(553)

-

(26)

0

(45)

(623)

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

(274)

-

(214)

(22,968)

-

-

-

1,979

-

1,979

. translation differences

(145)

5

329

(1)

533

722

. other movements

3,843

3,507

8,463

0

(10,287)

5,526
181,263. emission rights allowances

At the end of the year

36,006

12,79028,503

17,88486,079Gross value

156,213

104,755

158,921

17,884116,012553,785

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

NET BOOK VALUE FOR CONTINUING OPERATIONS

36,006

12,79028,503

17,88486,079181,263

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

F15 Goodwill
Thousands of Euros

31/12/2020

31/12/2021

Gross value

169,915

165,627

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

Net book value at the end of previous year

156,705

155,990

At the end of the previous year

. acquisition through business combinations

1,499

-

. translation differences(2,214)

2,595

At the end of the year

155,990

158,585

Gross value

165,627

168,915

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

155,990

158,585

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

Thousands of Euros

Catalysis

Energy &SurfaceTechnologies

RecyclingTotal

31/12/2020

49,99987,737

18,254

155,990

31/12/2021

49,98890,264

18,333

158,585

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

1432020) and a weighted average cost of capital post-tax of 7% (unchanged versus 2020) . A uniform WACC
rate was applied across cash generating units with unit-specific risk factors considered to be reflectedin the underlying cash flow projections. Terminal values were determined on the basis of a perpetual
growth rate of on average 2% (same as in 2020). Inflation rates were based on guidance from national
and international institutes such as the NBB or ECB.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

144

F16 Property, plant and equipment
Thousands of Euros

Land and buildings

Plant, machineryand equipment

Furniture and vehicles

Other tangible assets

Construction in progress andadvance payments

Total

At the beginning of previous year without leasing
Gross value

1,189,490

2,402,378

242,362

15,070461,369

4,310,669

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

Net book value at the beginning of previous year without leasing

2,045,788

659,343

848,457

75,5001,120

461,369. acquisition through business combinations

3,510

(798)

548

-

876

4,136

. additions

20,66332,5887,852

364

330,009391,475. disposals

(10)

(938)

(176)

(20)

(134)

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

(654)

(312)

-

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

88,832

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

695,767

820,668

82,403903

508,033

2,107,775

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

1,242,294

2,478,662

260,590

23,522508,033

4,513,101

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

Net book value at the beginning of the year without leasing

695,767

820,668

82,403903

508,033

2,107,775. additions

76,36142,34914,97916,148229,435

379,272. disposals

(446)

(207)

(111)

(312)

(113)

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

(743)

312

-

(25,436). translation differences

16,70519,803600

39

24,674

61,822. other movements

50,119183,342

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

790,583

881,799

86,96916,799512,941

2,289,090

Gross value

1,382,096

2,703,328

276,986

39,340512,940

4,914,690

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

NET BOOK VALUE FOR CONTINUING OPERATIONS WITHOUT LEASING

790,583

881,799

86,97016,799512,940

2,289,091

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

145

Land and buildings

Plant, machineryand equipment

Furniture and vehicles

Other tangible assets

Construction in progress andadvance payments

Gross value

47,341

135

18,175500-

66,152

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

Net book value at the beginning of previous year for leasing

48,884

Thousands of Euros

Total

35,84577

12,462500-. additions

17,901

1,034

8,578

144

-

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

(10)

(99)

(0)

-

(1,242)

979

(35)

-

-

-

944

40,866342

14,176502-

55,886Gross value

67,193

1,055

24,865637-

93,750

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

Net book value at the beginning of the year for leasing

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

40,865342

14,176502-. additions

16,638

1,274

7,662

-

-

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

1,336

2

40

0

-

1,378

. transfer

(681)

-

1

-

-

(680)

46,251847

14,549397-

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

68,9582,310

28,436625-

100,329

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

NET BOOK VALUE FOR LEASING

46,251847

14,549397-

62,044

Tangible asset including leasing
Gross value

1,451,054

2,705,637

305,423

39,965

512,940

5,015,019

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

NET BOOK VALUE FOR CONTINUING OPERATIONS INCLUDING LEASING

836,834

882,646

101,519

17,196

512,940

2,351,134

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

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

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

Country

Percentage

Percentage

2020

2021

For continuing operations

Thousands of Euros

31/12/2020

31/12/2021

Assets214,719

270,781

Liabilities

101,894

143,037

Turnover

195,889

261,159

Net result(5,332)

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

Associates
IEQSA

Peru

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

PEN

40.00

40.00

China

CNY

40.00

40.00

United Kingdom

USD

40.22

40.22

China

CNY

40.00

40.00

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

F18 Financial assets at fair value through oci and loans granted

Thousands of Euros

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

Goodwill

Total

At the end of previous year

94,68345,156

139,839. profit for the year

17,347-

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

5,449

427

5,877

109,557

45,583

155,140

AT THE END OF THE YEAR FOR
CONTINUING OPERATIONS

Financial assets at FV
through OCI

Loans granted

10,897

2,192

1,633

753

Non-current financial assets
At the beginning of previous year

Thousands of Euros146. increase. reversals of impairment losses (included in"Income from other financial instruments"). translation differences. fair value recognized in equity

2

-

(45)

(79)

(4,193)

-

59

386

8,352

3,252

5,014

39

. translation differences

78

36. fair value recognized in equity

(43)

-

. other movements

719

(719)

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

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

. increase-132. translation differences-1. other

-

(44)

-

169

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

F20 Trade and other receivables

F19 Inventories
Thousands of Euros

Thousands of Euros

31/12/2020

31/12/2021

2,706,918

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

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

1,477,096

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

Notes

31/12/2020

31/12/2021

Non current

Analysis of inventories
Base products - gross value

147

Cash guarantees and deposits

8,370

9,737

Other receivables maturing > 1 year

2,574

10,217

Assets employee benefits

820

718

11,764

20,672

1,366,686

1,394,540

Consumables - gross value

102,163

111,128

Current

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

Trade receivables (at cost)

Advances paid

7,222

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

Contracts in progress

7,503(10,626)

Other receivables (at cost)

177,008

243,7462,718,092

2,869,071

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

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

Other receivables (write down)

(207)

(207)

Interest receivable

495

1,439

Fair value receivable financial instruments held for
cash-flow hedging

F33

45,09180,452

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

21,511

9,868

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

1,931

3,977

Deferred charges and accrued income

86,973116,989

TOTAL FOR CONTINUING OPERATIONS

1,677,167

1,832,033

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Overdue between
Thousands of Euros

Total

Not due

0-30 days

30-60 days

60-90 days

> 90 days

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

1,328,476

1,161,303

137,088

21,569

4,384

4,131

Other receivables - at cost

177,007

176,020

-

-

223

765

Loss allowance

14,888

9,412

1,291

334

240

3,611

Expected loss rate

0.99%

0.70%

0.94%

1.55%

5.20%

73.75%

Ageing balance analysis
at the beginning of
the year

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

1,357,690

1,222,865

111,435

12,724

6,021

4,645

Other receivables - at cost

243,746

236,195

2,940

1,186

252

3,173

Loss allowance

16,595

10,006

1,465

270

692

4,162

Expected loss rate

1.04%

0.69%

1.28%

1.94%

11.03%

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

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

Total

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

4,328

-

4,328

. Impairment written off against asset
carrying amount. Other movements

48

-

48

(408)

(346)

(755)

. Translation differences

639

5

644

At the end of previous year

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

At the beginning of the financial year

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

1,535

-

1,535

. Impairment written off against asset
carrying amount

4,564

4,564

-

. Other movements

129

-

129

. Translation differences

(918)

0

(917)

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

AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING 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 2021, two main credit insurance policies with two different insurers were in place. At
closing, € 462 million of the Group's outstanding invoices were covered by a policy where indemniﬁcationin case of non-payment amounts to 95% with an indemniﬁcation cap set at regional or country level.
The other policy covered € 262 million of trade invoices with a global annual deductible of € 5 million, amaximum indemnity per year of € 100 million and an indemnification in case of non-payment of 90%.
The Group also managed credit exposure by selling invoices to financial institutions without recourse(€ 410 million end of 2021 compared to € 301 million end of 2020), partly covered by the above credit
insurance policies. Under one of these facilities, the carrying amount of receivables sold before thetransfer amounts to € 220 million while total carrying amount of the assets that the entity continues
to recognize and the related continuing involvement liability equal to € 17.6 million as of 31 December
2021. The latter consist mainly of non-transferred credit risk as well as late payment risk over the relevant
portfolio. Other facilities amounted to € 190 million are derecognized in their entirety.
Specifically in China, Umicore reduces credit risk by discounting bank acceptance drafts it receives fromits customers without recourse (and hence derecognized) (€ 290 million end of year 2021 compared to€ 245 million end of 2020).
Finally, some of our businesses function without credit insurance and instead internal credit limits are set
based on available ﬁnancial information and business knowledge. Theses limits are duly reviewed andapproved by management.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

F21 Tax assets and liabilities

AssetsThousands of Euros

Thousands of Euros

31/12/2020

31/12/2021

39,553

46,762

Tax assets and liabilities
Income tax receivables
Deferred tax assets

221,938

219,248

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

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

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

2020
168,927
59,688

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

2020
157,466
56,542

Goodwill on fully
consolidated companies

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

11,101

19,405

11,506

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

1,371

141

(181)

(470)

1,190

(329)

Inventories

41,534

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

8,375

49,528Trade and other receivables

8,212

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

Group Shareholder's equity-

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

199,092

Long Term Financial Debt
and other payable

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

22,826

Provisions
Employee Benefits

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

Provisions for Environment

26,15029,969

(378)

(205)

25,772

29,764

Provisions for otherliabilities and charges

12,96822,889

(583)

(658)

12,38522,231

Current Financial Debt

40

1,224

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

1,969

1,969

-

-

1,969

1,969

2021

-

(359)

-

(359)

-

Translation adjustments(6,199)

5,359

218

(84)

(5,981)

5,275

Transfer

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

2,085

-

-

8

(761)

(8)

-

-

(761)

199,092

Intangible assets

Long term receivables-(24,294)

2021

(556)

(31,478)(22,846)

2020

(514)

(8,576)219,248

2021

(556)

(8,156)

221,938

2020

(514)

3,632

AT THE END OF
FINANCIAL YEAR FOR
CONTINUING OPERATIONS

2021

-

(23,322)

Other movements

2020

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

Acquisitions throughbusiness combination

Net

Property, plantand equipment

Net
2021

Liabilities

149

194,954

Current Provisions
for Environment
Current Provisions for Other
Liabilities & Charges

9,952

4,281

(8)

(8)

9,944

4,273

Trade and other payables

67,076

60,570(1,309)(877)

65,767

59,693

Total deferred tax due totemporary differences

304,374

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

168,437

179,208

Tax losses tocarry forward

70,25780,051--

70,25780,051

867

650

-

-

867

650

3,389

2,236

-

-

3,389

2,236

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

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

199,092

194,954

199,092

194,954

Investments deductions
Other

335,029

360,649

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

113,091

141,401

NET AMOUNT

221,938

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

Umicore Strategy Performance Leadership Statements About Glossary BackcoverThousands of Euros

2020

2021

2020

2021

Base

Base

Tax

Tax

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

Umicore Integrated Annual Report 2021

150

31/12/2020

31/12/2021

373,904

272,965

F22 Net cash and cash equivalents
Thousands of Euros

158,635

249,850

43,85867,191

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

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

The main movements in deferred tax recognized directly in the consolidated statement of comprehensive
income are deferred taxes generated by temporary differences included within the lines "Trade and otherreceivables" (negative by € 8.3 million), “Provisions for employee beneﬁts” (negative by € 12.7 million)and “Trade and other payables” (negative by € 10.7 million).
Deferred tax assets are only recognized to the extent that their utilization is probable, i.e. if a tax beneﬁt is
expected in future periods. The Group assesses a recoverability in a range of 5 to 10 years. The actual tax
results in future periods may differ from the estimate made at the time the deferred taxes are recognized.
Unrecognized deferred tax assets of € 67.2 million mainly arise from tax losses (€ 61.6 million).
In accordance with IAS 12, a deferred tax liability on untaxed reserves of the Belgian companies,
amounting potentially to € 37.5 million, has not been recognized as management anticipates that thisliability will not be incurred in a foreseeable future.
Group current income tax payable at 31 December 2021 amounting € 197.5 million (2020 : € 160.7 million)
include uncertain tax positions of € 101.1 million (€ 114.9 million in 2020).

5

43636,397

921,428

1,010,307

1,194,437

8,678

28,1221,001,629

1,166,315

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover151

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

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

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

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

-

1,141

(33,865)

5,493

(687)

87,094(298,028)

Share-based
payment
reserves

Currencytranslationdifferences

Total

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

7,972

(84)

(513)

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

50,324

-

-

-

-

-

-

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

27,054

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

21,704

Transfer from/to retained earnings

-

-

-

-

-

-

-

(2,737)-(2,737)

Other movements

-

-

-

-

-

868

(1,775)

-

-

(908)

Exchange differences

-

5

74

549

-

(204)

2,403

-

(119,284)(116,457)

BALANCE AT THE END OF PREVIOUS YEAR

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

16,721(771)

79,187(325,033)

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

Balance at the beginning of the year

Remeasurements recognized in equity

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

16,721(771)

79,187(325,033)

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

Remeasurements recognized in other comprehensive income-

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

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

-

-

-

-

-

-

-

14,255-

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

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

(0)

-

-

8,740

Transfer from/to retained earnings

-

-

-

-

-

-

-

(5,904)-(5,904)

Change in scope

-

-

-

-

-

912

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

Exchange differences

-

40

393

150

(143)

(176)

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

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

BALANCE AT THE END OF THE YEAR

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverF24 Financial debt
Thousands of Euros

Bank loans

Lease liability

Other loans

Total

Non-current
At the beginning of previous year

1,101,266

46,262

3,555

1,151,083. Increase

125,000

27,657494,360

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

At the end of previous year

1,205,000

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

52,865447,289

1,705,154. Increase-

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

-

1,400

(0)

1,400

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

-

2,588

(22,430)(19,842)

1,205,000

62,892456,145

1,724,037

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

21,790-158

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

1,785(20,359). Translation differences

354

-

(40)

314

-

-

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

Short term bankloans Bank overdrafts

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

Thousands of Euros

Other loans

Total

Current
At the end of the preceding
financial year

554,266

8,678

134,2824

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

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

-

-

-

1,745

1,745

25,055351-

38

25,444

374,720

28,1228,005

1410,847

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

152

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverThousands of Euros

Type of Interest

Due within 1 Due between 1
year
and 5 years

Due beyond 5
years

Total

Gross Financial debt of previous year
Lease Liabilities-

40,47812,38752,865Credit Institutions

Fixed/Floating

584,895

3,190-

588,085

Commercial Papers

Floating

134,282--

134,282

Schuldschein

Fixed/Floating-

287,000

43,000330,000

US Private Placement

Fixed

-

-

750,000

750,000

EIB Loan

Fixed

-

-

125,000

125,000

Convertible Bond

Fixed

TOTAL

Thousands of Euros

Type of Interest-

444,100-

444,100

779,177

774,768

930,3872,424,332

Due within 1 Due between 1
year
and 5 years

Due beyond 5
years

Total

153

Gross outstanding debt
Short term bank loans

17.4%Long term bank loans

55.9%

Commercial paper

0.4%Bank overdrafts

1.3%

Lease liability

2.9%

Convertible Bond

21.2%

Other bank facilities

0.9%

Millions of Euros

2020

Net financial debt

1,414.0

960.4

Equity2,621.9

3,167.3

Total

4,035.9

4,127.7

35.0

23.3

31/12/2020

31/12/2021

Gearing ratio (%)

2021

Gross Financial debt of the year
Lease Liabilities-

45,20917,68362,892Credit Institutions

Fixed/Floating

402,847--

402,847

Commercial Papers

Floating

28,000--28,000Schuldschein

Fixed/Floating-

287,000

43,000330,000

US Private Placement

Fixed

-

50,000700,000

750,000

EIB Loan

Fixed-

125,000-

125,000

Convertible Bond

Fixed

-

456,145-456,145

430,847

963,354760,683

2,154,884

TOTAL

F25 Trade debt and other payables
Thousands of Euros

Notes

Non-current
Other long-term debts

5,682

6,540

Investment grants and deferred income from grants

17,82340,821

Total for continuing operations

23,50547,361

Current
Thousands of Euros

EUR

Total

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

1,205,000

1,205,000

476,145476,145

1,681,145

1,681,145

2020

2021

1,705,154

1,724,037

21,94820,000697,230

410,847

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

NET FINANCIAL DEBT

1,414,024

960,447

Trade payables

1,896,099

2,196,225

Advances received on contracts in progress

32,18029,851

Tax payable (other than income tax)

38,31732,885

Payroll and related charges

135,835

168,014

Other amounts payable

39,73367,708Dividends payable

11,618

11,612

Accrued interest payable

9,109

10,326

Fair value payable financial instrument held for cash
flow hedging

F33

57,95724,504

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

18,70831,874

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

19,589433

Accrued charges and deferred income

159,784

234,534

2,418,928

2,807,966

Total for continuing operations

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

Umicore Integrated Annual Report 2021

154

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

155

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

1 to 3 Months

3 Months to 1 Year

1 to 5 Years> 5 years

Total

Financial debt

274,765

90,870353,542774,766

930,3872,424,330

Current

274,765

90,870353,542--

719,177

231,384

55,590267,293--554,266

Bank overdrafts

8,678

-

-

-

-

8,678

Short-term loan: commercial paper

25,00035,25074,032--

134,282

Short term bank loans

Other loans

-

4

-

-

-

4

Current portion of long-term bank loans

9,691

-

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

13

26

119

-

-

158

-

-

-

774,766

930,387

1,705,153

Bank loans

-

-

-

287,000

918,000

1,205,000

Lease liability

-

-

-

40,47812,38752,865

Other loans

-

-

-

447,2880447,288

TRADE AND OTHER PAYABLES

1,377,057

362,626

659,330

32,008

11,4092,442,430

Current

1,377,057

362,626

659,330

19,912-

2,418,925

1,105,279

246,622544,198--

1,896,099

Advances received on contracts in progress

13,58618,199395--

32,180

Tax payable (other than income tax )35,188

2,591

539

-

-

38,317

Payroll and related charges

38,663

41,76555,407--

135,835

Other amounts payable

28,760

4,627

6,346

-

-

39,733

Dividends payable

11,618----

11,618

Accrued interest payable, third parties

6,960

1,653

496

-

-

9,109

Fair value payable financial instrument held for cash
flow hedging

471

9,324

28,631

19,527-

57,953

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

9,405

6,075

2,844

385

-

18,708Non-current

Trade payables

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

6,715

11,827

1,047

-

-

19,589120,413

19,943

19,428--

159,784
23,505---

12,096

11,409Other long-term debts

-

-

-

1,182

4,500

5,682

Investment grants and deferred income from grants

-

-

-

10,914

6,909

17,823

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

252,20969,764

108,874

963,354760,683

2,154,884

Current

252,20969,764

108,874--

430,847

Short term bank loans

216,083

69,764

88,873--374,720

Bank overdrafts

28,122----

28,122

Short-term loan: commercial paper

8,005

-

-

-

-

8,005

Other loans

-

-

1

-

-

1

Current portion of other long-term loans--

20,000--20,000Non-current

-

-

-

963,354760,683

1,724,037

Bank loans

-

-

-

462,000

743,000

1,205,000

Lease liability

-

-

-

45,20917,68362,892Other loans

-

-

-

456,1450456,145

Trade and other payables

1,868,161

583,445

342,920

48,27812,522

2,855,327

Current

1,868,161

583,445

342,920

13,439-2,807,966

1,539,519

463,937

192,769--

2,196,225

Advances received on contracts in progress

16,545

9,155

4,151

-

-

29,851

Tax payable (other than income tax )26,481

6,186

218

-

-

32,885

Payroll and related charges

50,94342,202

74,869--168,014

Other amounts payable

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

11,612----

11,612

Accrued interest payable, third parties

6,777

139

3,410

-

-

10,326

Fair value payable financial instrument held for cash
flow hedging

1,949

1,831

10,942

9,782-

24,504

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

8,974

12,550

6,693

3,657

-

31,874

Trade payables

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

-

-

433

-

-

433

179,242

19,80635,487--

234,534
47,361---

34,83912,522Other long-term debts

-

-

-

1,178

5,362

6,540

Investment grants and deferred income from grants

-

-

-

33,661

7,161

40,821

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

Thousands of Euros
At the end of the previous year

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

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

380,834

2,633

27,08715,802426,356

38,091

252

6,635

2,887

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

659

-

-

(48)

611

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

Thousands of Euros

3,092

7

6

93

3,198

3

(4)

(129)

(10)

(141)

927

-

(689)

(295)

(57)

(48,255)

60

(0)

(0)

(48,196)339,383

2,817

27,58817,418387,206

31/12/2020

Movements 2021

Belgium

95,573(18,512)77,061

Germany

300,743(20,316)

280,427

Subtotal

396,316(38,828)

357,488

30,040(322)

29,718426,356(39,150)

387,206

Other entities
TOTAL FOR CONTINUING OPERATIONS

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

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

157

31/12/2021

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

BELGIUM

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

GERMANY

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

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

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

159

2020

2021

Defined benefit obligations

697,222677,967

Fair value of plan assets

271,690

291,479

Funded Status

425,532

386,488

NET LIABILITY (ASSET)

425,532

386,488

Current service cost

34,591

43,641

Interest cost

6,246

5,904

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

Thousands of Euros
Amount recognized in the balance sheet

Components of pension costs
Amounts recognized in profit and loss statement

Thousands of Euros

2020

2021

Change in benefit obligation
Benefit obligation at beginning of the year

651,685

697,222

Remeasurement of Other Long Term Benefits

277

Current service cost

34,591

43,641

Administrative expenses and taxes

51

55

Interest cost

6,246

5,904

Total pension cost recognized in P&L account38,816

46,611

270,082

299,829

28,004(48,196)

37

27

Plan Participants' Contributions

905

843

Amounts recognized in other comprehensive income

Remeasurements - changes in demographic assumptions

1,556

(831)

Cumulative remeasurements at opening

Remeasurements - changes in financial assumptions

29,185(37,337)

Remeasurements - experience adjustments

2,942

723

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

Other movements

1,775

-

Expenses paid

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

(69)

4

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

Thousands of Euros

157-(1,353)

818

697,222677,967

Remeasurements of the year
Minorities

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

25,202

27,396

325,030

282,084

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

48,082

2,403(2,107)2021

259,952

271,690

Expected return on plan assets

2,349

2,069

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

5,398

11,671

Total Remeasurement shown in OCI

Employer contributions

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

Member contributions

905

843

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

Expenses paid

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

Fair value of plan assets at the beginning of the year

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

(76)

-

Exchange rate changes

(568)

927

271,690

291,479

FAIR VALUE OF PLAN ASSETS AT THE END OF THE YEAR

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

3,026
254,689

TOTAL RECOGNIZED IN THE OCI
2020

Change in plan assets

299,829

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

32

32(25,198)

46,007(2,403)

2,107

5

(5)

(409)

87

(28,004)

48,196

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

1,433

(805)

Effect of changes in financial assumptions

29,124(37,103)

Effect of experience adjustments

2,677

1,404

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

TOTAL REMEASUREMENTS INCLUDED IN OTHER COMPREHENSIVE INCOME

28,004(48,196)

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

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

Valuation
trend -0,25%

640,901

687,587

13.33

14.92

648,639622,105

670,622652,617

2020

2021

Balance sheet liability (asset) as of previous year

391,734

425,529

Pension expense recognized in P&L in the financial year

38,816

46,611

Amounts recognized in SoCI

28,004(48,196)

Employer contributions via funds in the financial year

(20,633)(25,572)

Employer contributions paid directly in the financial year

(11,840)(11,771)

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

2020

2021

Weighted average duration of benefit obligation (in years)

PRINCIPAL ACTUARIAL ASSUMPTIONS

Sensitivity to trend rate assumptions on inflation rate

Weighted average assumptions to determine benefit obligations atyear end

Sensitivity to trend rate assumptions on salary increase rate

Present value of defined benefit obligation

Discount rate (%)

0.78

1.17

Rate of compensation increase (%)

2.55

2.62

Rate of price inflation (%)

1.75

1.80

Rate of pension increase (%)

1.30

1.27

Discount rate (%)

0.95

0.78

Rate of compensation increase (%)

2.60

2.55

Rate of price inflation (%)

1.78

1.75

Rate of pension increase (%)

1.30

1.30

Weighted average assumptions used to determine net cost

Present value of defined benefit obligation

Thousands of Euros
BALANCE SHEET RECONCILIATION

Amounts recognized due to plan combinations
Other

2021

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

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

426,356

387,206

(820)

(718)

22,062

22,062

Asset employee benefit in non current asset (note F20)

Equity instruments

66,26966,269Other

93,787NET OBLIGATION ON BALANCESHEET

93,787
6,738

6,738

Assets held by insurance company

94,29080,983

Other

8,333

7,322

291,479

277,161

TOTAL PLAN ASSETS(7)-

425,529

386,488

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

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

(3)

(785)

Cash and cash equivalents

Real estate-

425,529

Fair value of allplan assets

Debt instruments

233

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

Fair Value of plan
assets with quoted
market pricePlan assets

160

2017

2018

2019

2020

2021

552,021549,052

651,685

697,222677,967

Fair value of plan assets

209,774

216,101

259,952

271,690

291,479

Deficit (surplus) in the plan

342,247

332,951

391,733

425,532

386,488

Experience adjustments on plan assets(5,286)

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

Experience adjustments on plan liabilities

4,611

5,967

3,032

2,942

723

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverThousands of Euros

2021

EXPECTED CASH FLOWS FOR FOLLOWING YEAR
Expected employer contributions

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

36,912

Expected total benefit payments

2020

Year 130,310Year 248,062

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

Next 5 years

119,823F28 Stock option plans granted by the company

Plan
ISOP 2015

Expiry date
09/02/2022

161

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

17.29

39,000

18.90

2,500

19.50

3,000
44,500248,750

Number ofshare options

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

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

5,641,250

27.42

5,785,190

32.00

Granted during the year

1,168,375

42.05

1,108,500

47.08

Exercised during the year

1,024,435

18.25

1,692,190

22.72

OUTSTANDING AT THE END OF THE YEAR

5,785,190

32.00

5,201,500

38.23

Exercisable at the end of the year

5,785,190

32.00

5,201,500

38.23

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

F29 Environmental provisions

ISOP 201604/02/2023

all working days of Euronext Brussels

16.63

ISOP 201713/02/2024

all working days of Euronext Brussels

25.50

413,500

27.04

23,750Thousands of Euros

437,250

At the end of previous year

248,750ISOP 201808/02/2025

all working days of Euronext Brussels

40.90

973,125

ISOP 201910/02/2026

all working days of Euronext Brussels

34.08

1,216,000

36.78

5,000

973,125

1,221,000
ISOP 2020

09/02/2027

all working days of Euronext Brussels

42.05

1,168,375
1,168,375

ISOP 2021

10/02/2028

all working days of Euronext Brussels

47.08

1,108,500
1,108,500

TOTAL

5,201,500

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

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

Provisions for soil clean­
Other
up & site rehabilitation environmental provisions

Total

108,238

13,136

121,374

58,98914,37773,367

(471)

(159)

(630)

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

(152)

-

(152)

. Translation differences

256

-

256

109,780

20,836130,615

106,247

11,146

117,393

3,533

9,689

13,222

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

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

Umicore Integrated Annual Report 2021

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

162

F30 Provisions for other liabilities and charges

Thousands of Euros

Provisions forreorganisation& restructuring

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

Total

At the end of the previous year

40,856

2,686

19,96357,454

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

8,147

84

-

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

912

3

305

765

1,984

. Transfers

(2)

(18)

-

6

(14)

. Other movements

823

-

-

-

823

AT THE END OF THE FINANCIAL YEAR FOR
CONTINUING OPERATIONS

38,754

2,527-

86,869128,148

Of which - Non Current

27,226

801-

70,081

98,108

Of which - Current

11,5291,725-

16,79030,044

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

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

F31 Capital employed
Thousands of Euros

Notes

Intangible assets

F14,F15

346,888

344,025

339,849F16

2,163,661

2,236,527

2,351,134

Investments accounted for under the equity method

F17

139,839150,052

155,140

Financial assets at FV through OCI

F18

8,352

15,125

14,120Inventories

F19

2,718,092

3,081,161

2,869,071

Non current receivable (excluding assets employee benefits)

F20

Property, plant and equipment

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

F25

Adjusted current accounts payable
Translation reserves

31/12/2020

30/06/2021

31/12/2021

10,945

12,378

19,954

1,611,461

2,013,295

1,750,174

39,55344,147

46,762

7,038,790

7,896,710

7,546,203

23,50532,77447,3602,360,975

3,149,457

2,783,459

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

Non-current provisions

F29,F30

182,040

221,178

215,502

Current provisions

F29,F30

60,29657,85743,266

160,734

236,935

197,488

Liabilities included in capital employed

2,585,401

3,548,280

3,169,825

Capital employed

4,453,389

4,348,430

4,376,378

3,191

3,012

517

4,456,580

4,351,443

4,376,895

Income tax payable

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

4,454,596

4,364,169

Average Capital Employed in year preceding closing date

4,450,948

4,384,090

536,361

971,377

12.05%

22.16%

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

F9

163

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

164

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

Held for trading economic hedging

Fair value
hedge accounting

Cash Flowhedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI

8,352

-

-

-

-

8,352

8,352

-

-

-

-

8,352

3,332

-

-

-

3,332

-

3,332

-

-

-

3,332

-

1,688,931

1,931

21,51145,091

1,620,398-

Cash guarantees and deposits

8,370

-

-

-

8,370

-

Other receivables maturing in more than 1 year

2,574

-

-

-

2,574

-

820

-

-

-

820

-

Thousands of EurosLevel

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

1

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

Assets employee benefits
Current
Trade receivables (at cost)

1,366,686---

1,366,686-

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

Other receivables (at cost)

177,008---

177,008-

Other receivables (write-down)

(207)

-

-

-

(207)

-

Interest receivable

495

-

-

-

495

-

Fair value of financial instruments held for cash-flow hedging

245,091--45,091--

Fair value receivable - financial instruments related to FV hedging

223,442

1,931

21,511---

86,973---

86,973-

1,010,306---

1,010,306-

373,904---

373,904

-

5

-

-

-

5

-

Cash-in-hand and bank current accounts

636,397---

636,397-

TOTAL OF FINANCIAL INSTRUMENTS (ASSETS)

2,710,921

1,931

21,51145,091

2,634,036

8,352

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

Umicore Strategy Performance Leadership Statements About Glossary Backcover

165

Carrying amount
Fair value

Held for trading economic hedging

Fair value
hedge accounting

Cash Flowhedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI

2,495,431---

2,424,331-

Bank loans

1,276,100---

1,205,000-

Lease liability

52,865---52,865-

Other loans

447,289---

447,289-

576,056---

576,056

-

8,678

-

-

-

8,678

-

134,282---

134,282

-

162

-

-

-

162

-

2,442,433

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

Other long term debts

5,682

-

-

-

5,682

-

Investments grants and deferred income from grants

17,823---

17,823-Thousands of Euros

Level

LIABILITIESFinancial debt
Non-current

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

Current
Trade payables

1,896,099---

1,896,099-

Advances received on contracts in progress

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

38,317---38,317-

Payroll and related charges

135,835---

135,835-

Other amounts payable

39,733---39,733-

Dividends payable

11,618---

11,618-

Accrued interest payable

9,109

-

-

-

9,109

-

Fair value financial instrument held for cash flow hedging

257,957--

57,957--

Fair value payable - financial instruments related to FV hedging

238,296

19,58918,708---

Accrued charges and deferred income

159,784---

159,784-

TOTAL OF FINANCIAL INSTRUMENTS (LIABILITIES)

4,937,864

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

166

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

Held for trading economic hedging

Fair value
hedge accounting

Cash Flowhedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI

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

2,777

-

-

-

2,777

-

2,777

-

-

-

2,777

-

1,852,705

3,977

9,868

80,452

1,758,408-

Cash guarantees and deposits

9,737

-

-

-

9,737

-

Other receivables maturing in more than 1 year

10,217---

10,217

-

718

-

-

-

718

-

Thousands of EurosLevel

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

1

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

Assets employee benefits
Current
Trade receivables (at cost)

1,394,540---

1,394,540-

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

Other receivables (at cost)

243,746---

243,746-

Other receivables (write-down)

(207)

-

-

-

(207)

-

Interest receivable

1,439

-

-

-

1,439

-

Fair value of financial instruments held for cash-flow hedging

280,452--80,452--

Fair value receivable - financial instruments related to FV hedging

213,845

3,977

9,868

-

-

-

116,989---

116,989-

1,194,436---

1,194,436-

272,965---

272,965

-

43

-

-

-

43

-

Cash-in-hand and bank current accounts

921,428---

921,428-

TOTAL OF FINANCIAL INSTRUMENTS (ASSETS)

3,064,038

3,977

9,868

80,452

2,955,621

14,120

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

Umicore Strategy Performance Leadership Statements About Glossary Backcover

167

Carrying amount
Fair value

Held for trading economic hedging

Fair value
hedge accounting

Cash Flowhedge accounting

Loans, receivables
and payables

Financial assets at FV
through OCI

2,182,852---

2,154,884-

Bank loans

1,232,968---

1,205,000-

Lease liability

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

456,145---456,145-

Short term bank loans

374,720---374,720-

Bank overdrafts

28,122---

28,122-

Short term loan: commercial paper

8,005

-

-

-

8,005

-

Other loans

20,001---

20,001-

2,855,327

433

31,87424,504

2,798,516-

Other long term debts

6,540

-

-

-

6,540

-

Investments grants and deferred income from grants

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

Level

LIABILITIESFinancial debt
Non-current

Current

Trade and other payables
Non-current

Current
Trade payables

2,196,225---

2,196,225-

Advances received on contracts in progress

29,851---

29,851-

Tax - other than income tax - payable

32,885---32,885-

Payroll and related charges

168,014---

168,014-

Other amounts payable

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

11,612---

11,612-

Accrued interest payable

10,326---

10,326-

Fair value financial instrument held for cash flow hedging

224,504--24,504--

Fair value payable - financial instruments related to FV hedging

232,307433

31,874---

Accrued charges and deferred income

234,534---

234,534-

TOTAL OF FINANCIAL INSTRUMENTS (LIABILITIES)

5,038,179

433

31,87424,504

4,953,400-

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

32.1 Fair value hierarchy

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

32.2 Sensitivity analysis on financial instruments

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

32.2.1 Commodity prices

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

168

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

32.2.2 Foreign currency

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover169

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

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

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

32.2.3 Interest rate

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

F33 Fair value of financial instruments (derivatives)

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

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

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

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

Fair value

Change in fairvalue

31/12/2020

31/12/2021

31/12/2020

31/12/2021

31/12/2021

Forward commodities sales

131,855

156,750(49,786)

11,241

61,027

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

22,09959,564

37,465

Forward currency contracts sales

641,320

681,471

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

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

2,986

4,621

1,635

Forward IRS contracts

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

Total fair value impact subsidiaries(12,866)

55,947

recognized under trade and other receivables

45,09180,452

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

Total fair value impact associates andjoint ventures
Total

1,114

(1,953)(11,752)

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

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

Change in fairvalue

31/12/2020

31/12/2021

31/12/2020

31/12/2021

31/12/2021-

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

303,729

59,432(19,549)

1,984

21,533-(82,064)

-

4,934

4,934

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

1,891

1,560

(331)

Forward currency contracts sales

1,532,188

1,216,640

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

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

150

2,689

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

21,511

9,868

recognized under trade and other receivables(economic hedging)

1,931

3,977

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

Total fair value impact subsidiaries

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

(433)

Total

(14,854)(18,462)

170

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

171

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

31/12/2021

Fair Value Hedged Items

Fair Value
Hedging Instruments

Fair Value
Hedged Items

Fair Value
Hedging Instruments

Change in Fair Value
Hedged Items

Change in Fair Value
Hedging Instruments

Ineffectiveness

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

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

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

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

1 to 3 Months

3 Months to 1Year

1 to 5 Years

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

1 to 3 Months

3 Months to 1Year

1 to 5 Years

Total

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

-

249

661

743

1,653

-

6

7

(4)

9

Total forward purchases (CFH)

2,719

5,547

35,851

42,76086,877

1,007

2,081

10,155

8,855

22,099Total forward purchases (FV economic hedging)

15,741

14,752--30,493

1,151

780

-

-

1,931

Forward currency contracts sales (CFH)

32,26955,116260,213204,150

551,748

1,452

2,436

11,856

4,254

19,997

Forward currency contracts purchases (CFH)

3,336

6,807

28,82433,226

72,194

103

210

1,042

1,632

2,986

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

522,845

173,820-

1,291,269

6,530

5,360

5,008

-

16,897

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

98,242

10,145

1,786

630

110,803

4,478

124

4

8

4,614

-

-

-

40,00040,000

-

-

-

(771)

(771)

FX Risk

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

288

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

Total forward sales (FV economic hedging)

44,004

162,083

97,642-

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

Total forward purchases (FV economic hedging)

3,195

-

-

-

3,195

(40)

-

-

-

(40)

FX Risk
Forward currency contracts sales (CFH)

3,148

8,156

34,11239,75085,167

(458)

(927)

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

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

92,962

56,711

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

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

211,408

144,148

51,452

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover172

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

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

1 to 3 Months

3 Months to 1Year

1 to 5 Years

Total< 1 Month

1 to 3 Months

3 Months to 1Year

1 to 5 Years

Total

-

-

-

121,600

121,600

-

-

-

47

47

Total forward sales (CFH)

10,14033,66643,23155,937

142,974

191

(254)

(509)

12,444

11,872

Total forward purchases (CFH)

2,475

4,952

32,113

12,85452,394

1,515

3,006

43,242

11,80159,564

Total forward purchases (FV - IFRS 9 Hedge Accounting)

25,92930,27325,862-

82,064

1,445

1,528

1,961

-

4,934

-

43,666

2,592-

46,258

-

2,224

193

-

2,417

14,93240,8852,377-

58,194

497

1,041

21

-

1,560

Forward currency contracts sales (CFH)

32,617

9,338

49,35923,610114,924

963

501

2,865

18

4,348

Forward currency contracts purchases (CFH)

2,475

4,952

34,31916,05857,804

337

680

3,287

317

4,621

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

81,14940,90925,430-147,488

755

306

256

-

1,318

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

121,549

78,97247,854385

248,759

1,419

394

1,801

1

3,616

-

-

-

275,000

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

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

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

305

1,870

6,514

5,087

13,776

(55)

(87)

(337)

(152)

(631)

65,774

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

13,174-

13,174

-

-

(433)

-

(433)

FX Risk
Forward currency contracts sales (CFH)

41,50944,982

256,654

223,401

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

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

486,931351,714

192,287

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

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

76,362

115,950

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover173(*) Non-cash items are mainly linked to mark to market of inventories and commitments, strategic andtransactional hedging and inventories, impairments in inventories and bad debt provisions.

F34 Notes to the cash flow statement34.1 Definitions

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

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

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

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

Thousands of Euros

2020

2021

Depreciations

267,941

279,526(Reversal) Impairment charges

87,54348,504464

19,764

Adjustments for non cash transactions

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

Inventories and bad debt provisions

7,012

10,747

Depreciation on government grants
Share-based payments
Change in provisions

(199)

(401)

10,10814,25580,323

22,662449,023

399,936

Tax charge of the period

59,131

179,043

Interest (income) charges

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

(230)

(210)

116,051

228,573

Inventories(255,762)(150,979)

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

Trade and other payables

531,216

449,647

As in the consolidated balance sheet

37,760127,584

Non-cash items (*)

17,74235,113

Items disclosed elsewhere (**)

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

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

Total
Change in working capital requirement analysis

Currency translation differences(118,300)

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

167,154

Net cash andcash equivalent

Loans (w/obank overdrafts)

Net financial debt

1,001,629

2,415,654

1,414,025

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

1,166,315

2,126,762

960,447

34.2 Net cash flow generated by operating activities

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

34.3 Net cash flow used in investing activities

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

There are no loan commitments given to third parties.

34.4 Net cash flow used in financing activities

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

2020

2021

Acquisition of tangible assets

391,475

379,572

Acquisition of intangible assets

44,06036,854

435,535

416,426

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

32,36827,830403,168

388,596

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

F35 Off-balance sheet rights and commitments
Thousands of Euros

2021

Guarantees constituted by third parties on behalf of the Group

30,99938,112

Guarantees constituted by the Group on behalf of third parties

6,940

3,112

Guarantees received

68,596

81,102

1,513,704

1,643,975

288

4,278

701,475

910,182

Commercial commitments for commodities sold (to be delivered)

1,667,126

1,930,639

Goods and titles of third parties held by the Group

4,930,583

5,447,836

288-

8,919,711

10,059,236

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

35.3 Guarantees received

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

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

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

174

35.1 Guarantees constituted by third parties on behalf of the group

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

35.2 Guarantees constituted by the group on behalf of third parties

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

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

35.5 Commercial commitments

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

35.6 Goods and titles of third parties held by the Group

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

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

F36 Contingencies

Thousands of Euros

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

175

2020

2021

Supervisory Board
Salaries and other compensation

1,022

1,262

Fixed portion

296

296

Variable portion (based on attended meetings)

373

467

Value of the share grant

350

497

3

3

Benefit in kind company car chairman

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

2020

2021

Management Board

F37 Related parties

Salaries and other benefits

Thousands of Euros

2020

2021

Transactions with joint ventures and associates
Operating income

100,444

196,699

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

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

Thousands of Euros

2020

2021

Current trade and other receivables

32,68539,774Current trade and other payables

38,77979,573

Outstanding balances with joint ventures and associates

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

7,522

18,814

Short-term employee benefits

1,496

11,021

Post-employment benefits

1,052

1,044

Other long-term benefits

492

2,027

Share-based payments

4,483

4,721

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

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176

F38 Events after the reporting period

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

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

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

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

F39 Earnings per share
Earnings per share
(EUR)

2020

2021

EPS - basic

0.54

2.57

EPS - diluted

0.54

2.56

Basic adjusted EPS

1.34

2.77

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

NUMERATOR ELEMENTS
Thousands of Euros
Net consolidated profit, Group share

Notes

2021

130,530

618,959

322,407667,492

F9

From continuing operations
Adjusted net consolidated profit, Group share

2020

F9

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

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

2020

2021

246,400,000

246,400,000

5,733,685

5,200,995

240,666,315

241,199,005

240,589,550

240,868,119

1,183,525

1,112,044

241,773,075

241,980,163

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

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

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

Umicore Integrated Annual Report 2021

177

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

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

Thousands of Euros

31/12/2020

31/12/2021

1. Assets
Fixed assets

2,885,295

3,172,625

3,296,290

I.

Formation expenses

6,066

14,685

10,288

II.

Intangible assets

114,726

99,032

99,067

III.

Tangible assets

467,458

452,430

460,546

IV.

Financial assets

Current assets

2,297,045

2,606,478

2,726,389

1,748,153

2,060,640

2,169,189

V.

Amounts receivable after more than one year

449,366

476,214584,998

VI.

Stocks and contracts in progress

534,771

617,346

503,271

VII.

Amounts receivable within one year

519,135

620,119

861,136

VIII.

Investments

184,701

290,395

185,936

IX.

Cash at bank and in hand

2,190

4,565

559

X.

Deferred charges and accrued income

57,99052,00133,2894,633,448

5,233,265

5,465,479

Capital and reserves

2,268,310

2,177,834

2,428,079

I.

Capital

550,000

550,000

550,000

II.

Share premium account848,130

848,130

848,130

III.

Revaluation surplus

91

91

91

IV.

Reserves

389,855

414,075

391,090

V.

Result carried forward

262,604

267,163352,163

Vbis. Result for the period

209,258

86,475

272,454

8,372

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

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

31/12/2019

Summarized balance sheet at 31 December

These documents are also available on request at:

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

178

TOTAL ASSETS
2. Liabilities and shareholders' equity

VI.

Investments grants

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

123,600

206,053

198,047

2,241,539

2,849,378

2,839,353

VIII.

Amounts payable after more than one year

1,082,864

1,707,729

1,707,589

IX.

Amounts payable within one year

1,076,244

1,063,641

1,040,392

X.

Accrued charges and deferred income

82,43178,00891,372

4,633,449

5,233,265

5,465,479

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverThousands of Euros

31/12/2019

31/12/2020

31/12/2021

I.

Operating income

3,489,297

4,459,290

6,229,378

II.

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

III.

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

281,389

IV.

Financial income

259,275

201,457

213,675

V.

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

VI.

Result on ordinary activities before taxes

212,669

93,908361,486

X.

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

Result for the period

209,258

86,475309,750

209,258

86,475309,750

2019

2020

2021

Profit (loss) to be appropriated588,668

558,337

661,913

1.

Profit (loss) for the financial year

209,258

86,475309,750

2.

Profit (loss) carried forward

379,410

471,862352,163

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

22,985

3.

(26,598)(24,220)

22,985

Thousands of Euros

C.

D.

F.

To the reserve for own shares

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

491,9572.

471,862352,163

491,957

Profit (loss) to be carried forward

Profit to be distributed (1)1.
2.

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

A.

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

Share capital
1.

2.

Issued capitalAt the end of the preceding
financial year

550,000

246,400,000

At the end of the financial year

550,000

246,400,000

550,000

246,400,000

Structure of the capital
2.1.

Categories of shares
Ordinary shares

2.2.

E.

Appropriation accountA.

Number of shares

Statement of capital

Income statement

XIII. Result for the period available

Thousands of Euros

179

G.

Registered shares orbearer shares
Registered

43,682,308

Bearer202,717,692

Authorized unissued capital

55,000% capital

Number of shares

Notification date

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

15.98

39,363,737

29/06/2021

BlackRock Investment Management

4.97

12,239,906

17/09/2021

Baillie Gifford & Co and Baillie Gifford
Overseas Ltd.

10.01

24,660,116

29/09/2021

Others66.94

164,935,246

31/12/2021

Own shares held by Umicore

2.11

5,200,995

31/12/2021

100.00246,400,000

100.00246,400,000

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

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

Umicore Integrated Annual Report 2021

180

Umicore Integrated Annual Report 2021

Environmental Statements
Consolidated environmental figures

182

E3

Waste

183

E6

Energy185

E1

scope of environmental statements

182

E4

Water

183

E7

Greenhouse gases

185

E2

Resource Efficiency

183

E5

Emissions183

E8

Regulatory compliance & management system

186

181

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

182

Consolidated environmental figures
unit

notes

2017

2018

2019

2020

2021

CO2e emissions (scope1)

tonne

E7

364,139

417,140

389,101

330,619372,699CO2e emissions (scope2) - Market based

tonne

E7

269,565

350,562

402,795

401,926

473,738CO2e emissions (scope2) - Location based1

tonne

E7

299,168

368,649

426,074

417,346

418,989

Energy consumption

terajoules

E6

6,532

7,458

7,476

7,591

8,308

Renewable electricity

%

E6

-

-

14

15

17

Metal emissions to water (load)

kg

E5

1,437

1,861

2,052

2,695

3,440

impact units

E5

125,688

144,657

174,725

216,739

190,464

kg

E5

1,829

1,564

864

984

994

impact units

E584,46388,04452,492

69,371

70,084

Metal emissions to water1
Metal emissions to air (load)
Metal emissions to air1
Diffuse metal emissions%

E5

114.20100.0064.80

SOx emissions

tonne

E5

661

657

531

389

372

NOx emissions

tonne

E5

320

304

280

239

240

Water withdrawal

thousand m3

E4

4,755

5,885

6,208

7,813

10,103

Fresh water withdrawal

thousand m3

E4

Total waste produced

tonne

E3

72,80478,77868,31799,434

94,619Hazardous waste1

tonne

E3

55,44258,75947,58978,05573,551of which recycled1

%

E3

4.3

5.3

7.9

5.0

8.0

tonne

E3

17,37320,01820,72821,37921,065

Non hazardous waste1

9,764

of which recycled1

%

E3

58.2

62.2

59.4

64.7

71.4

Compliance excess rate

%

E8

0.10

0.14

0.10

0.15

0.10

Environmental complaints

N°

E8

34

29

33

80

104

Sites ISO 14001 certified

%

E8

92

91

95

96

94

1 Some definitions of KPIs have changed over time. A direct comparison over all years is therefore not fully applicable. See the respective topics in this section [the Environmental Statements section] for further information.

E1 scope of environmental statements
Environmental key figures include data from consolidated industrial sites where Umicore has operational
control. The following sites are no longer reported compared to 2020: Wickliffe (United States; Cobalt& Specialty Materials) and Guarulhos (Brazil; Jewelry & Industrial Metals, Precious Metals Chemistry,
Precious Metals Refining) – all three entities moved from Guarulhos to the existing site in Americana(Brazil; previously Automotive Catalysts only). The following site was added to the environmental
reporting scope in 2021: Jiangmen Site 2 (China; Rechargeable Battery Materials). This brings the total
number of consolidated industrial sites that report environmental data in 2021 to 54, down from 55 in
2020. The site in Lyngby (Denmark; Automotive Catalysts) moved location and is reported as Hørsholm(Denmark; Automotive Catalysts) as of 2021. At our site in Tulsa (United States; Precious Metals Chemistry),
the activities of Automotive Catalysts were discontinued and no longer reported in 2021.

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. The 8 sites with thelargest environmental impact for 2021 are: Hanau (Germany; Catalysis, Recycling), Olen (Belgium; Energy& Surface Technologies, Corporate R&D), Hoboken (Belgium; Recycling), Jiangmen Site 1, Jiangmen Site
2 ( both China; Energy & Surface Technologies), Cheonan Site 1, Cheonan Site 2/3 (both Korea; Energy &Surface Technologies), and Kokkola (Finland; Energy & Surface Technologies). These sites reported theirfull year figures in 2021. Only sites running from the 1st of January are included. A sensitivity analysis,
undertaken for the 2021 data on energy consumption data, indicates that the potential deviation of theGroup environmental performance would be 1% 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 the2020 annual report have been restated in the 2021 report.

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183

E2 Resource Efficiency

E3 WasteIn 2021, Umicore revised the definitions to allocate raw materials between primary and secondary
materials. This revision was initiated due to the changes in the external environment where an increased
focus on resource efficiency and circularity led to new metrics. The definitions below are inspired by thesedevelopments and have been refined for the Umicore context. The raw materials in scope for this indicator
are the metals purchased to development-based applications. The percentage is expressed in total raw
materials weight.

Waste is defined as the total volume of generated waste expressed in tonnes/year. The distinction
between hazardous and non-hazardous waste is made based on the local regulation for the region where
the reporting entitiy is located.

The resource efficiency indicator provides information on the nature - primary or secondary - of the raw
materials processed at the operational sites into final (Umicore) product.

E4 Water

The following definitions apply for primary and secondary raw materials1:
Primary raw material: Material which has never before been subjected to use or processed into any
form of end-use product (or part thereof) other than that required for its manufacture. In the absenceof information from the supplier on the nature of the raw materials supplied, these raw materials are
considered as primary. The collected data are expressed in terms of total tonnage of incoming material.
Secondary raw material: Material which has been used and/or processed before and can be reused orprocessed again into any form of end-use product (or part thereof).

The waste recycling rate is the ratio of the waste recovered by third parties (including waste recovered asenergy through incineration) to the total waste.

Water withdrawal figures for 2021 includes withdrawn produced water (mainly, this is the water/moisture
content of incoming raw materials and liquid solutions), groundwater withdrawn for remediation
purposes and cooling water withdrawn from and returned to surface water, while the ‘water use’ figuresfrom 2017-2020 do not include these amounts.

4.1 Water, by business group

Water withdrawal

unit

Catalysis

Energy &SurfaceTechnologies

thousand m3

536

6,942

Recycling Umicore Group
2,625

10,103

Secondary raw materials consist of two sub-groups :2

Secondary pre-consumer raw material: Material resulting from the industrial processes in the value
chain before that material has been processed into a product. Please note that this includes wastematerials originating from intermediate manufacturing steps in the value chain using primary raw
materials as input. In all cases the material should not be suitable for consumption in the intermediate
manufacturing steps from which it originates.
Secondary post-consumer raw material: Material resulting from products ending at least one lifetime.
Please note that this includes waste materials originating from intermediate manufacturing steps in thevalue chain using secondary raw materials (pre- and or post- consumer raw materials) as input. This also
includes material recovered from waste generated by industrial facilities in their role as end-users of afinished product. In all cases the material should not be suitable for consumption in the intermediate
manufacturing steps from which it originates.

1
2

Inspired by BSI 8001:2017 Framework for implementing the principles of circular economy in organisations
Inspired by EN45557:2019 General method for assessing the proportion of recycled content in energy-related products

E5 Emissions
We focus on the metals that are present in Umicore’s material flow and that are relevant to theenvironment in terms of impact. A detailed assessment to evaluate and define the relevant metals was
carried out in 2010 and implemented in 2011. A procedure is in place to evaluate the effect of changes
to Umicore’s material flow at existing sites as well as at plants that are newly established or joining thecompany, to ensure that the list of metals is up to date and relevant. Since 2011, no changes to the list
were needed.
Metal emissions to water (load) 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.

Umicore Integrated Annual Report 2021

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Metal emissions to air (load) are defined as the total amount of metals emitted to air, after emissions
abatement where applicable, in solid fraction by all point sources expressed in kg/year. For mercury andarsenic, 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 humanhealth (for air emissions).
The impact factors for water emissions are based on scientific data generated (“predicted no effectconcentrations” or PNECs) for the REACH regulation for most metals and on Tatsi et.al (2015) for thallium1.
An impact factor of 1 was attributed to the antimony PNEC of 113 μg/l. The impact factors for emissions
to air are based on the occupational exposure limits (OELs) (reference: American Conference of Industrial
and Governmental Hygienists, 2021) and the binding EU OELs. An impact factor of 1 was attributed to thezinc (oxide) OEL of 2 mg/m³. Subsequently, an impact factor for all relevant metals was calculated basedon these references. The metal impact to air and to water is expressed as “impact units/year”.
In 2021, a review of the PNECs and OELs for each metal of concern was carried out to update the scientificbasis for the impact factors. This led to a revision of impact factors for several metals. The revised set of
impact factors for metals to air and water is applied from 2021 onward, and the values for 2020 have beenrecalculated to allow a direct comparison with the 2020 metal emissions impact. The impact figures for
2017-2019 were not recalculated with the new set of impact factors and are presented only for the sakeof completeness – a comparison with those years is meaningful, but not precise.
Other emissions tracked by Umicore are SOx and NOx emissions, which are reported in tonnes/year.
The majority of the data for SOx and NOx are obtained from direct measurements (online analyzers),
complemented to a lesser extent by data based on calculations based on site-specific data. Our sites emit
further compounds to a certain extent, but these are not considered material, based on a thorough reviewof trends in the years 2011-2015, when data on VOCs, COD, etc. were also collected. All sites that havejoined Umicore since 2015 have been reviewed for potential additional material compounds, and no such
addition was deemed required.
At all relevant locations with environmental emissions, Umicore is compliant with the applicablelaws and legislation that regulate and control emissions to the environment. Legal obligations drive
most of our data collection related to emissions; however, additional compounds may be analyzed at
higher frequencies in excess of the strictly legal requirements to improve data reliability, where this ismeaningful. Emission of compounds that are not legally required to be monitored and that we have notvoluntarily added to our analysis campaigns may occur, but the impact of such untracked emissions is
considered negligible.
1

184

Umicore has applied the materiality principle to emissions since 2016, meaning that only the sites with amaterial impact in comparison to the Group total are required to report. An assessment of the emissionsof 2015, the last year when all industrial sites were required to report emissions, identified 10 or fewersites that made up 95% or more of the Group total for each (set of) parameter(s) (assessed in termsof load for SOx and NOx and in terms of impact for metals emissions to water and air). Sites that havejoined Umicore since 2015 have been reviewed for their materiality impact and were grouped for each(set of) parameter(s) as material or not, based on a comparison with the sites in these two categoriesof the 2015 assessment. This renders the previously used ‘95% or more’ assessment rule somewhat lessaccurate, but it is clear that we are still very close to above 95% of the Group total emissions for any
material compound. All non-material sites are requested to assess if there were any significant upward
deviations from their 2015/recent emissions baseline, triggering a discussion of whether or not they are
to be considered material in the reporting year; this was not applicable in 2021.
It should be noted that during the analysis of the 2021 metal emissions data, a notable uncertainty
was encountered with regard to the waste water discharged at one site, having an impact on the total
emissions of metals to water. The detailed analysis shows that this might lead to an overestimation of up
to 5% in terms of metal emissions to water in terms of impact for the whole Group. However, as this leads
to an overestimation of our environmental impact and as it is unclear how large exactly that uncertainty
is, 2021 metal emissions were not revised down, not least because this also allows for a better comparison
with the 2020 figures, for which a similar level of overestimation at the concerned site can be assumed. In
addition, at another site, stormwater events led to unplanned discharge of untreated and partly treatedprocess water in 2021, resulting in metal load and impact to the water environment in addition to thestandard operational discharge. The contribution in terms of metal impact from this unplanned discharge
represents 23% of the total Group impact in 2021. However, this is likely an underestimation of the totalload and impact, as the unplanned discharge is only analysed for about half of the metals that thestandard discharge is analysed for.”Measures were taken to increase the capacity of buffer tanks at thesite to prevent unplanned water discharge in the future, and to fill the mentioned data gaps with a viewto aligning the analyzed parameters for full comparability between these two types of water discharge.

Diffuse metal emissions
The concentration of suspended particulate matter (PM10) in air of relevant metals (lead, arsenic andcadmium) is measured in µg/Nm³ daily at three measurement stations related to our production sitein Hoboken. The monthly averages result in an annual moving average concentration, which is thenmultiplied by the impact factors to air for the respective metals. The data were normalized at the end of
2020, giving the baseline for this Let’s go for Zero target.
In 2021 and 2022 a screening is ongoing across the Group to identify which other sites may be material
in contribution to this target. We expect to include the performance of other identified sites in futureTatsi, K., Turner, A., Handy, R. D., (2015), The acute toxicity of thallium to freshwater organisms: Implications for risk assessment. Science of The Total Environment, 536, 382-390. https://www.sciencedirect.com/science/article/abs/pii/S0048969715302655?via%3DihubUmicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcoverreporting. Their impact will be added to the baseline by projecting their impact backward to end of 2020
and the baseline will be adapted when new sites are acquired.

E6 Energy
6.1 Energy, by business groupunit

Catalysis

Energy & Surface Technologies

Recycling

Umicore Group

Energy consumption terajoules

1,423

4184

2,692

8,308

Indirect energy consumption: energy from purchased electricity, steam, compressed air and heat
Direct energy consumption: energy from fuel, gas oil, natural gas, LPG, coal, cokes, pet cokes etc.
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.

185

Umicore reports its absolute CO2e emissions as per the scope of sites outlined in E1. The absolute
CO2e emission volumes are calculated using the Greenhouse Gas Protocol definition and reporting
methodology for scopes 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, compressed air and heat purchasedfrom third parties (from industrial parks or utility companies). 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 take only CO2 into account.
The calculation of scope 2 emissions for each site is done in two 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 placewith their energy 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 grid average emission factors in a country/region where these data are available. The
total CO2 emissions for the Group are then presented as two separate values based on this differentiation,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
since the 2012 reporting. The sector guidelines are published on the WBCSD website.
GHG emissions intensity is calculated using the total CO2e market-based emissions divided by the total
revenues excluding metals.

E7 Greenhouse gases
7.1 scope 1 & scope 2 emissions, group data

7.3 Upstream scope 3 emissions, group data

2017

2018

2019

2020

2021

Total

633,704

767,702791,896

732,545846,437CO2e emissions scope 1

364,139

417,140

389,101

330,619372,699CO2e emissions scope 2 - Market based

269,565

350,562

402,795

401,926

473,739

7.2 scope 1 + 2 emissions, by business groupunit

Catalysis

Energy &SurfaceTechnologies

CO2e emissions (scope1+2) - Market based

tonne

141,636

370,890

333,178

846,437CO2e emissions (scope1+2) - Location based

tonne

147,568

358,712284,937

791,687

Recycling Umicore Groupunit
CO2e emissions
tonne
scope 3Purchased Goods
and Services
4,815,266

CapitalGoods
113,374

Fuel & Energy
related activities
70,764

Upstream
distribution

Waste
generated

Employeecommuting

190,946

23,916

10,438

Total

5,224,704

The estimation of the scope 3 GHG emissions covers all upstream scope 3 categories except for businesstravel, which has been excluded due to its assumed low impact. Data were collected at business unit level.
The emission factors used come from databases (Ecoinvent 3.4, ADEME, DEFRA, EEIOA, etc.) consulted
between June and August 2019, when such emission factors were valid. We list here the main encounteredlimitations and their related assumptions:● For purchased goods and services: proxies have been selected whenever the emission factors of therelated products were not available. The emissions factor for recycled materials is assumed to be equal
to 0.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover● For capital goods, the most conservative EFs have been selected from the types of investment
available in the environmentally extended input/output analysis database.
● Upstream transportation and distribution: as a conservative approach, in the absence of specificdata on destination or starting point in the same country, the distance travelled by the goods wasestimated to be equivalent to a large distance between two cities in different parts of the country(e.g., Bruges-Arlon for Belgium). When transportation mode was not provided, it was assumed to be
by sea whenever the trip was intercontinental or shorter by sea, and otherwise by road (truck) if on
the same continent and shorter by road. When transportation was multimodal, only the biggest partof the journey was taken into account (e.g., for goods shipped from Japan to Germany, only the sea
journey was considered and not the truck parts of the journey from ports to facilities).
● For waste treatment, emission factors from the French carbon database were used for all countries,
as no other appropriate EFs that take into account waste collection were encountered in available
databases. The emissions for the waste sent to recycling or recovery were considered in this category.
Considering that no EF was available to represent the recycling treatment process without taking into
account the avoided emission linked to remanufacturing new products, the EF for treating hazardous
waste was used for calculating the emissions linked to recycling treatment. It is a conservative
approach, as “hazardous waste treatment” is the highest EF used in this assessment to estimate waste
treatment emissions.
● For employee commuting, emissions were extrapolated on the emissions reported for this category in
the last scope 3 inventory made by Umicore (reported year: 2007). The amount of GHG emissions per
employee in 2007 was multiplied by the number of employees in 2018.
The scope 3 emissions for the covered categories have been reported in our CDP submissions in 2021,
accessible
here.

scope 4, avoided emissions
Estimating avoided emissions requires taking assumptions that have an influence on the results. The main
assumptions taken in this case are the following:

Cathode materials for electric mobility● The solution to compare: we compared the emissions of a medium passenger car with a rechargeable
battery containing our cathode materials, with the emissions of a medium passenger car containing
an internal combustion engine running on diesel or gasoline, considering the European split between
diesel and gasoline in the period 2016-2020.
● We considered the NMC (nickel manganese cathode) materials produced between 2016 and 2020 for
electric mobility applications, assuming that the entire volume is used for full electric vehicles. We
made our calculations under the assumption that the vehicles are charged using the European average
grid mix.

186● The comparison covers the following steps: mining, production of the cathode materials by Umicore,
processing into batteries, use of the batteries in full electric vehicles and recycling of the batteries at
end of life. Literature or LCA data from commercial databases have been used for all processes not
carried out by Umicore.
● The production of the car and its recycling has not been considered as it has been assumed that it was
the same for both the Umicore technology and the solution to compare.

Recycling● We compared Umicore’s secondary production with the primary production of an equivalent tonnageof each metal considered.
● As much as possible, we applied the industry average climate change impact provided by the metal
associations for primary production. Data from commercial LCA databases had to be used for somemetals in the absence of such industry average.
● We have considered the recovery of a selected number of metals by Umicore during the period
2016-2020. For these metals, the climate change impact for the scope 1, 2 and 3 upstream has
been considered.

E8 Regulatory compliance & management system
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 (this may include higher frequency measurements of permit-relatedparameters where deemed useful for internal quality reasons). The total number of measurements means
the number of measurement events multiplied by the number of parameters per measurement event.
A complaint is a formally registered notification made by an external claimant, authorities excluded, tothe entity / site, concerning an EHS-related issue with a perceived negative impact.

Group data
%

2017

2018

2019

2020

2021

Compliance excess rate

0.10

0.14

0.10

0.15

0.10

Umicore Integrated Annual Report 2021

Social Statements
Consolidated social figures

188

S3

Talent management

190

S6 Donations

192

S1

scope of social statements

188

S4

Occupational safety

191

S7

192

S2

Workforce

189

S5

Occupational health

191

Contribution to the Sustainable Development Goals

187

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

188

Consolidated social figures
unit

Notes

2017

2018

2019

2020

2021

No.

S2

9,769

10,420

11,152

10,85911,050Temporary contracts% of workforce

S2

3.86

3.13

3.31

3.19

3.51

Women amongst all employees% of workforce

S2

21.92

21.30

20.88

21.68

22.48

Women amongst all managers% of workforce

S2

22.37

22.98

23.13

23.06

25

Women amongst senior management% of workforce

S2

6.77

9.70

10.96

10.74

12.42

Workforce (fully consolidated companies)

Non-European representation in senior management functions

%

S2

18.05

17.91

18.49

20.13

21.57

Average training hours per employee

hours/employee

S3

45.33

43.10

48.73

36.33

41.59

Employees having a yearly appraisal% of workforce

S3

98.29

96.15

94.00

93.42

94.14

Voluntary leavers - ratio% of workforce

S3

5.03

7.18

5.99

4.20

5.82

Employees represented by union or Collective Labour Agreement (CLA)% of workforce

S2

65.41

64.49

65.60

66.38

66.94

Exposure ratio 'all biomarkers aggregated'1

%

S5

2.7

2.8

1.8

2.0

1.5

Exposure ratio lead (blood)2

%

S5

0.5

2.0

0.9

2.5

1.4

Exposure ratio arsenic (urine)2

%

S5

1.0

1.2

0.8

0.8

1.3

Exposure ratio cobalt (urine)2

%

S5

6.0

5.0

3.4

2.7

2.2

Exposure ratio cadmium (urine)2

%

S5

0.7

0.5

0.2

0.2

0.2

Exposure ratio nickel (urine)2

%

S5

1.4

2.6

1.8

2.0

1.2

Exposure ratio indium (blood)2

%

S5

14.2

2.8

1.9

1.6

0

People with platinum salts sensitisation

No.

S5

1

3

1

1

0

People with noise-induced hearing loss

No.

S5

0

0

5

3

0

People with contact dermatitis

No.

S5

2

3

4

0

0

People with occupational asthma other than Pt-salts

No.

S5

0

0

0

1

2

People with muskulo-skeletal ailments

No.

S5

8

6

8

1

8

Fatal accidents

No.

S4

0

0

0

1

0

Fatal accidents sub-contractors

No.

S4

0

1

0

0

0

Lost Time Accidents (LTA)

No.

S4

51

61

90

49

73

Lost Time Accidents (LTA) sub-contractors

No.

S4

22

21

25

17

20

S4

3.01

3.36

4.6

2.5

3.7

S4

1,590

1,830

3,893

9,176

2,328

S4

0.09

0.10

0.2

0.5

0.1

LTA frequency rate
Calendar days lost
LTA severity rate

No.

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 are 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.

S1 scope of social statements
In total, 86 consolidated sites are included in the HR related notes of the social reporting (S2 to S3). While
the total number of sites remains the same as 2020, two changes occurred in reporting: in the USA, asmall portion of headcount Attleboro relocated to Riverside and in South Korea, Cheonan is reported as

1 site rather than 2 separate sites. The sites report full-year data for the social indicators. The indicatorspresented are based on data from fully consolidated companies.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

S2 Workforce

2.2 Regional data

2.1 Group data
unit

2017

2018

2019

2020

2021

Workforce (fully
consolidated companies)

N°

9,769

10,420

11,152

10,85911,050Workforce fromassociated companies

N°

3,360

3,180

2,976

2,460

2,589

Employees men

N°

7,628

Employees women

N°

2,141

2,219

2,329

2,354

2,484

Full-time equivalent

N°

9574

10,224

10,956

10,576

10,828

Employees < 30 years

N°

1697

1,980

2141

1,893

1,911

Employees between 30 and
50 years

N°

5504

5,939

6363

6,339

6,521

Employees > 50 years

N°

2568

2,501

2648

2,627

2,618

Temporary contracts% of workforce

3.86

3.13

3.31

3.19

3.51

Women amongst
all employees% of workforce

21.92

21.30

20.88

21.68

22.48

Women amongst
all managers% of workforce

22.37

22.98

23.13

23.06

25.00

%

18.05

17.91

18.49

20.13

21.57

Non-European
representation in senior
management positions
Employees represented byunion or Collective Labour
Agreement (CLA)

189% of workforce

65.41

8,201

64.49

8,823

65.60

8,505

66.38

8,566

66.94

unit

EuropeNorth
AmericaSouth
America

Asia
Pacific

AfricaTotal workforce

N°

7,185

701

1,031

4,135

587

Workforce (fully
consolidated companies)

N°

6,220

688

660

3,323

159

Workforce fromassociated companies

N°

965

13

371

812

428

Employees men

N°

4,857

517

490

2,603

99

Employees women

N°

1,363

171

170

720

60

Full-time equivalentN°

6,008.02

680.75660.003,320.26

159.00Temporary contracts% of workforce

4.42

3.05

1.97

2.38

0.00

Employees represented byunion or Collective Labour
Agreement (CLA)% of workforce

85.18

3.34

90.76

42.55

39.62

unit

Catalysis

Energy &SurfaceTechnologies

Recycling

Total workforce

N°

3,007

4,628

2,867

3,137

13,639Workforce (fully
consolidated companies)

N°

3,007

3,836

2,867

1,340

11,050Workforce fromassociated companies

N°

1,797

2,589

Employees men

N°

2,375

3,019

2,396

776

8,566

Employees women

N°

632

817

471

564

2,484

Full-time equivalentN°

2,970.22

3,837.371

2,810.07

1,210.37

10,828

Temporary contracts% of workforce

6.22

3.28

1.95

1.42

3.51

Employees represented byunion or Collective Labour
Agreement (CLA)% of workforce

48.65

61.86

86.99

79.63

66.94

2.3 Business group data

792

Corporate Umicore Group

1 In Business Group Energy & Surface Technologies the Full-time equivalent (FTE) number is greater than the Workforce number due to the distribution
method used to allocate FTE of employees in commercial profiles to different Business Units.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

2.4 General overview of sites & employees
Production sites R&D | Technicalcentres

Other sites

Employees

EuropeAustria

1

-

-

152

Belgium

3

1

1

3,229

Denmark

1

1

-

59

Finland

1

1

-

293

France

3

-

1

247

Germany

4 (1)

3

1

1735 (342)

Ireland

(1)

-

-

(485)

Italy

-

-

2

38

Liechtenstein

1

1

-

81

Luxemburg

-

-

1

12

Netherlands

-

-

1

9

Poland

2

-

1

268

Portugal

-

-

1

6

Russia

-

-

1

6

Spain

-

-

1

6

Sweden1-(1)

37 (1)

United Kingdom

1

(1)

2 (1)

42 (137)

Asia-Pacific
Australia

-

-

1

7

China

4 (2)

1

5 (1)

1603 (801)

India

1

-

2

95

Japan

2

3

2 (1)

174 (7)

Philippines

1

-

-

114

South Korea

2

2

1

1,138

Taiwan

-

-

2

31

Thailand

2

-

1

161

United Arab Emirates

-

-

(1)

(4)

Canada

3

-

-

251

Mexico--11

United States

7

1

4 (1)

436 (13)

North America

South America-

Argentina

1

-

-

70

Brazil

4

1

-

590

Peru

(1)

-

-

(371)

1

159 (428)

AfricaSouth Africa
Total

1 (1)

-

46 (6)

15 (1)

33 (6) 11,050 (2,589)

190

Figures in brackets denote “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 Talent management
3.1 Group data
unit

2017

2018

2019

2020

2021

% of workforce

98.39

96.15

94.00

93.42

94.14

Average number of training
hours per employee

hours/
employee

45.33

43.10

48.73

36.33

41.59

Average number of training
hours per employee – Menhours/
employee

46.53

44.68

48.26

37.11

41.21

Average number of training
hours per employee– Womenhours/
employee

41.01

37.29

50.48

33.49

42.90

Average number of training
hours per employee– Managers

hours/
employee

38.54

37.59

43.01

26.98

42.40

Average number of training
hours per employee – Other
employee categories

hours/
employee

46.44

42.94

49.51

38.62

41.28

Voluntary leavers ratio% of workforce

5.03

7.18

5.99

4.2

5.82

Voluntary leavers men

N°

404

619

521

372

519

Voluntary leavers women

N°

70

110

126

86

123

Employees having ayearly appraisal

3.2 Regional data
unit

EuropeNorth
AmericaSouth
America

Asia
Pacific

AfricaUmicoreGroup

Average number of training hours
per employee

hours/
employee

35.17

34.95

43.22

55.53

26.02

41.59

Employees having a yearly appraisal% ofworkforce

92.81

97.42

96.32

95.30

98.75

94.14

Voluntary leavers ratio% ofworkforce

2.69

8.17

4.91

11.62

1.88

5.82

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

4.2 Regional data

3.3 Business group data
unit

Average number of training
hours per employee

Catalysis

Energy &SurfaceTechnologies

Recycling

Corporate Umicore Group

hours/
employee

44.13

48.55

31.24

37.80

41.59

Employees having ayearly appraisal% of workforce

96.22

93.50

93.47

92.71

94.14

Voluntary leavers ratio% of workforce

6.27

7.93

3.37

3.95

5.82

S4 Occupational safety
All consolidated industrial sites where Umicore has operational control, are included in the scope of theoccupational safety reporting. In 2021, following Umicore’s internal reporting procedure 91 consolidatedsites of which 56 are industrial sites were required to report their occupational safety data.
Despite all measures and an open safety culture there is an inherent risk of incomplete accident reporting.
Umicore is dependent on information provided by the person (employee and/or contractor) involved inan accident.

4.1 Group data
unit

2017

2018

2019

2020

2021

Fatal accidents

No.

0

0

0

1

0

Fatal accidents sub­contractors

No.

0

1

0

0

0

Lost Time Accidents (LTA)

No.

51

61

90

49

73

Lost Time Accidents(LTA) sub-contractors

No.

22

21

25

17

20

3.01

3.36

4.6

2.5

3.7

No.

1,590

1,830

3,893

9,176

2,328

0.09

0.10

0.2

0.5

0.1

138

158

158

119

104

8.15

8.70

8.07

6.13

5.28

LTA frequency rate
Calendar days lost
LTA severity rate
Recordable Injuries (RI)

191

No.

Recordable Injuries
frequency rate
Ratio N° of sites with
no LTA / total N° ofsites reporting

%

84

84

83

83

81.3

ISO 45001 certified

%

51.0

51.9

52.6

54.4

59.26

unit
Lost Time
Accidents (LTA)

Europe North America South America

No.

62

3

Asia-Pacific17Africa Umicore Group
073

4.3 Business group data
unit

Catalysis

Energy &SurfaceTechnologies

Recycling

Corporate Umicore Group

Fatal accidents

N°

0

0

0

0

0

Lost Time Accidents (LTA)

N°

6

11

49

7

73

Calendar days lost

N°

527

449

1,142

210

2,328

S5 Occupational healthAll consolidated industrial sites where Umicore has operational control, are included in the scope of theoccupational health reporting. In 2021, following Umicore’s internal reporting procedure 54 consolidatedsites were required 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.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

192

S6 Donations

S7 Contribution to the Sustainable Development Goals

6.1 Group data

Umicore supports the Ten Principles of the United Nations Global Compact and has been committed toadvancing the Sustainable Development Goals (SDGs) for many years. To gain more insights about ourcontribution to the SDGs, we conducted a detailed analysis in 2021.

€ thousand

2017

2018

2019

2020

2021

Cash donations

1,151.46

1,287.22

1432.68

1346.28

1458.62

Donations in kind

60.47

66.10

78.95

159.19146.72

Staff freed time

87.40

78.34

102.02

11.74

18.65

1,299.34

1,431.66

1613.651517.211623.99

Europe North America South America

Asia-Pacific

TOTAL DONATIONS

6.2 Regional data
€ thousand
Total donations

1,364.71

94.18

88.76

64.54

€ thousand

Catalysis

Energy &SurfaceTechnologies

Recycling

Total donations

150.70268.83360.63Africa Umicore Group
11.80

1,623.99

6.3 Business group data
Corporate Umicore Group

843.83

1,623.99

For the analysis, the 169 targets of the 17 United Nations’ SDGs1 were assessed according to thefollowing dimensions:● Potential contribution: This indicates if Umicore’s contribution is direct or indirect in achieving an
SDG target. A direct contribution is defined as an actual or potential contribution through Umicore’s
operations, core business, way of doing business, or investments. An indirect contribution is an actualor potential contribution through Umicore’s indirect activities throughout the value chain.
● Sense of contribution: This dimension indicates if Umicore is ‘enhancing its positive contribution’ or‘minimizing its negative impact’ to achieve an SDG target.
● Level of contribution: This dimension indicates if Umicore has a low, medium, or high contribution to
the world through the SDG target.
To correctly assess the impact, external expert Sustainalize considered detailed insights from our strategy,
operations, and internal documentation, a targeted scan of the SDG compass2 and information fromrelevant industry documentation3.
By using these data sources to assess our contribution to the SDG targets according to the dimensions
listed above, we gained comprehensive insight into the specific contribution of Umicore to each of theSDGs, determining which SDGs are the most relevant to our strategic commitments.
The SDGs selected are those on which Umicore has a high direct impact. We added SDG 5 ‘gender equality’,for which we have a medium direct impact, as it is a strategic priority for Umicore. The key SDGs for
Umicore are therefore SDG 3, 5, 6, 7, 8, 9, 11, 12 and 13.
A degree of subjectivity is inherent to this kind of exercise. To increase objectivity, several review rounds
were organized, and the reasoning for our specific decision was recorded.

1
2
3

Definitions can be found on the site of the UN.
As SDGs are primarily defined on a governmental level, the SDG Compass links the SDGs targets to relevant business indicators which makes it easier for companies to assess their contribution.
Industry documentation included the” Chemical Sector SDG Roadmap” from WBCSD and the “SDG Industry Matrix for Energy, Natural Resources & Chemicals” from the UN and KPMG.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

SDG #SDG Name

SDG description

SDG sub-target

Potential
contribution

Sense of contribution

Level ofcontribution

193

Comments

1

End poverty

SDG 1. End poverty in all its
forms everywhere

1.2 By 2030, reduce at least by half the proportionof men, women and children of all ages living
in poverty in all its dimensions according tonational definitions

DirectEnhancing positive contribution

Low

Umicore can positively contribute by giving all employees
freedom of association (collective bargaining can have impact
on wages) and including compliance with applicable laws
(which state minimum wages) in binding contracts with
suppliers. Umicore also has a limited negative contribution
as it does not engage in artisanal mining, which is an importantsource of income for the rural poor. However the positive
contribution is estimated to be more significant.

3

Healthy lives

SDG 3. Ensure healthy lives and promote
well-being for all at all ages

3.4 By 2030, reduce by one third premature
mortality from non-communicable diseases
through prevention and treatment and promotemental health and well-being

DirectEnhancing positive contribution

Low

Umicore can contribute positively to mental health andwellbeing by providing its employees with wellbeing
programs focussed on preventing burnouts, flexible working
arrangements, mental wellbeing trainings etc.

3

Healthy lives

SDG 3. Ensure healthy lives and promote
well-being for all at all ages

3.5 Strengthen the prevention and treatment of
substance abuse, including narcotic drug abuseand harmful use of alcohol

DirectEnhancing positive contribution

Low

Umicore can contribute positively by providing its employeeswith substance abuse programs (targeted at specific sites) for
tobacco and alcohol.

SDG 3. Ensure healthy lives and promote
well-being for all at all ages

3.8 Achieve universal health coverage, including
financial risk protection, access to quality
essential health-care services and access tosafe, effective, quality and affordable essential
medicines and vaccines for all

MediumUmicore can contribute positively by the nature of its businessi.e. producing catalysts for cancer treatments and by providing
its employees with substantial health coverage. It can also
support by giving charities medical aid in developing countries
e.g. AZG, Red Cross (although this is not part of the philanthropy
focus on education and technology).

SDG 3. Ensure healthy lives and promote
well-being for all at all ages

3.9 By 2030, substantially reduce the numberof deaths and illnesses from hazardous
chemicals and air, water and soil pollution
and contaminationHigh

Umicore can reduce its negative contribution by keeping
control over the pollution its operations may cause (heavy
metals, dioxins) in general and especially in areas surrounding
factories e.g. managing of risks associated with lead on metal
refiner sites as well as in sourcing areas . It can also contributeby monitoring the health of all employees with a potential
workplace exposure to metals.

Low

This contribution is related to Umicore's dedicated philanthropy
approach (focus on education). As Umicore focusses its
sponsorships and donations on international projects witha clear educational component, it can positively contribute
through its partnerships to educate and encourage young
people to study sciences e.g. That's Brilliant campaign topromote STEM education and its partnership with UNICEF on 2
child-education projects.

Low

This contribution is partially related to Umicore's dedicatedphilanthropy approach (focus on education). As Umicore
focusses its sponsorships and donations on international
projects with a clear educational component, it can positively
contribute through its partnerships to educate and encourage
young people to study sciences e.g. That's Brilliant campaign
to promote STEM education. Umicore can also contribute
positively by providing its employees with continuous
training opportunities.

Low

This contribution is related to Umicore's dedicated philanthropy
approach (focus on education). Umicore can positively
contribute through partnerships to educate and encourage
young girls to study sciences e.g. That's Brilliant campaign topromote STEM education, especially among girls.

3

3

4

4

4

Healthy lives

Healthy lives

Quality education

SDG 4. Ensure inclusive and equitable
quality education and promote lifelong
learning opportunities for all

4.1 By 2030, ensure that all girls and boys
complete free, equitable and quality primaryand secondary education leading to relevant andeffective learning outcomes

Quality education

SDG 4. Ensure inclusive and equitable
quality education and promote lifelong
learning opportunities for all

4.4 By 2030, substantially increase the numberof youths and adults who have relevant skills,
including technical and vocational skills, foremployment, decent jobs and entrepreneurship

Quality education

SDG 4. Ensure inclusive and equitable
quality education and promote lifelong
learning opportunities for all

4.5 By 2030, eliminate gender disparities in
education and ensure equal access to alllevels of education and vocational training
for the vulnerable, including persons withdisabilities, indigenous peoples and children invulnerable situations

DirectDirectDirectDirectDirectEnhancing positive contribution

minimizing negative impact

Enhancing positive contribution

Enhancing positive contribution

Enhancing positive contribution

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

SDG #SDG Name

SDG description

SDG sub-target

Potential
contribution

Quality education

SDG 4. Ensure inclusive and equitable
quality education and promote lifelong
learning opportunities for all

4.7 By 2030, ensure that all learners acquire
the knowledge and skills needed to promotesustainable development, including, througheducation for sustainable development andsustainable lifestyles, human rights, genderequality, promotion of a culture of peace andnon-violence, global citizenship and appreciationof cultural diversity and of culture's contribution tosustainable development

Gender equality

SDG 5.Achieve gender equality andempower all women and girls

5.1 End all forms of discrimination against all
women and girls everywhere

Gender equality

SDG 5.Achieve gender equality andempower all women and girls

5.2 Eliminate all forms of violence against all
women and girls in the public and private
spheres, including trafficking and sexual andother types of exploitation

Gender equality

SDG 5.Achieve gender equality andempower all women and girls

5.5 Ensure women's full and effective
participation and equal opportunities forleadership at all levels of decision-making inpolitical, economic and public life

Clean waterand sanitation

6.3 By 2030, improve water quality by reducing
pollution, eliminating dumping and minimizing
SDG 6. Ensure availability and sustainable release of hazardous chemicals and materials,
management of water and sanitation for all halving the proportion of untreated wastewaterand substantially increasing recycling and safe
reuse globally

Direct6

Clean waterand sanitation

6.4 By 2030, substantially increase water­
use efficiency across all sectors and ensure
SDG 6. Ensure availability and sustainable sustainable withdrawals and supply of freshwater
management of water and sanitation for all to address water scarcity and substantiallyreduce the number of people suffering fromwater scarcity

6

Clean waterand sanitation

7

7

4

5

5

5

6

Sense of contribution

Level ofcontribution

194

Comments

Low

Umicore can contribute positively by providing specific training
to its employees on topics such as inclusion & diversity,
business ethics, sustainable development etc.

MediumUmicore can contribute positively by eliminating discrimination
within its own organisation. Moreover, it can promote anti­
discrimination in its entire supply chain by having its suppliers
sign a code of conduct including clauses on anti-discrimination
against women.

Low

Umicore can contribute by eliminating all forms of violenceagainst women within its own organisation but more
specifically in its supply chain: it can promote anti-violence
practices by having its suppliers sign a code of conduct
including clauses on exploitation of women.

MediumUmicore can contribute by taking measures within its own
organisation i.e. equal pay, gender parity in management,
providing services for working mothers,... . Moreover, Umicore
can also promote and enforce equal opportunities in its
supply chain.

minimizing negative impact

High

Umicore can minimize its negative impact by keeping
control over the water pollution its operations may cause
in areas surrounding factories as well as in sourcing areas ofprecious metals and minerals. Umicore can also contribute bycontrolling the amount of water used for its operations

Directminimizing negative impact

Low

Umicore can minimize its negative impact by keeping control
over the amount and sources of water used for its operations
and by treating and reusing water.

6.6 By 2020, protect and restore water­
SDG 6. Ensure availability and sustainable
related ecosystems, including mountains, forests,
management of water and sanitation for all
wetlands, rivers, aquifers and lakes

Directminimizing negative impact

High

Umicore can minimize its negative impact by keeping control
over the water pollution its operations may cause in general
but also specifically in areas surrounding factories as well as insourcing areas of precious metals.

Affordable andclean energy

SDG 7. Ensure access to affordable, reliable, 7.1 By 2030, ensure universal access to affordable,
sustainable and modern energy for all
reliable and modern energy services

DirectEnhancing positive contribution

High

Umicore can contribute positively by producing rechargeable
battery materials for electrified transportation, portableelectronics, energy storage and power tools.

Affordable andclean energy

SDG 7. Ensure access to affordable, reliable, 7.2 By 2030, increase substantially the share ofsustainable and modern energy for all
renewable energy in the global energy mix

DirectEnhancing positive contribution

High

Umicore can contribute positively by the nature of its businessactivities i.e. producing rechargeable battery materials forstorage of renewable energy as well as by increasing the shareof renewable energy in its own energy consumption.

DirectDirectIndirect

DirectEnhancing positive contribution

Enhancing positive contribution

Enhancing positive contribution

Enhancing positive contribution

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

SDG #SDG Name

SDG description

SDG sub-target

Potential
contribution

Enhancing positive contribution

Low

Umicore can contribute positively by participating in REACH, byinformation sharing on toxicity and handling of substancesand fuel business and by Umicore's product stewardshippolicy including substitution strategy and reduced impact
for customers.

Enhancing positive contribution

High

Umicore can contribute positively to technical upgrading andinnovation by producing innovative products (e.g. emission
control catalysts, rechargeable batteries and catalyst for fuelapplications) and investing in R&D.

Enhancing positive contribution

Low

This contribution is related to Umicore's dedicated philanthropy
approach (focus on education & technology). Umicore canpositively contribute by supporting organizations which
encourage entrepreneurship e.g. by being a founding memberof Entrepreneurs pour Entrepreneurs/Ondernemers voor
Ondernemers which pairs corporate donors with development
charities that focus on promoting entrepreneurship in thedeveloping world.

DirectEnhancing positive contribution

High

Umicore can contribute positively by its core activity ofrecycling and refining of metal bearing materials and byusing materials in their processes from end-of life orsecondary origin.

8.5 By 2030, achieve full and productive
employment and decent work for all women andmen, including for young people and persons
with disabilities, and equal pay for work ofequal value

DirectEnhancing positive contribution

MediumUmicore can contribute positively by ensuring equal
opportunities and inclusiveness within its own organization.
Moreover, it can promote equal opportunities andinclusiveness in its supply chain.

8.6 By 2020, substantially reduce the proportion ofyouth not in employment, education or training

DirectEnhancing positive contribution

Low

Umicore can contribute positively by focusing on recruiting
young people (blue collar as well as white collar) e.g.
through a young graduate program and by supporting
educational programs.

7

Affordable andclean energy

7.a By 2030, enhance international cooperation
to facilitate access to clean energy research and
SDG 7. Ensure access to affordable, reliable, technology, including renewable energy, energy
sustainable and modern energy for all
efficiency and advanced and cleaner fossil-fueltechnology, and promote investment in energy
infrastructure and clean energy technology

Direct8Work andeconomic growth

SDG 8. Promote sustained, inclusive andsustainable economic growth, full andproductive employment and decent work
for all

8.2 Achieve higher levels of economic
productivity through diversification, technologicalupgrading and innovation, including througha focus on high value-added and labor ­intensive sectors

DirectSDG 8. Promote sustained, inclusive andsustainable economic growth, full andproductive employment and decent work
for all

8.3 Promote development-oriented policies that
support productive activities, decent job creation,
entrepreneurship, creativity and innovation, andencourage the formalization and growth of
micro-, small- and medium-sized enterprises,
including through access to financial services

DirectWork andeconomic growth

SDG 8. Promote sustained, inclusive andsustainable economic growth, full andproductive employment and decent work
for all

8.4 Improve progressively, through 2030,
global resource efficiency in consumption andproduction and endeavour to decouple economic
growth from environmental degradation, in
accordance with the 10-year framework ofprogrammes on sustainable consumption andproduction, with developed countries taking
the lead

8

Work andeconomic growth

SDG 8. Promote sustained, inclusive andsustainable economic growth, full andproductive employment and decent work
for all8Work andeconomic growth

SDG 8. Promote sustained, inclusive andsustainable economic growth, full andproductive employment and decent work
for all8Work andeconomic growthCommentsHigh

SDG 7. Ensure access to affordable, reliable, 7.3 By 2030, double the global rate ofsustainable and modern energy for all
improvement in energy efficiency

8

Level ofcontribution

Umicore can contribute positively by producing high quality
rechargeable battery materials for efficient storage and releaseof renewable energy and in making its own operations moreenergy efficient e.g. by executing energy efficiency projects
and implementing systems to monitor energy use.

Affordable andclean energy

7

Sense of contribution

195

DirectEnhancing positive contribution

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

SDG #SDG Name

SDG description

SDG sub-target

Potential
contribution

Enhancing positive contribution

MediumUmicore can contribute positively by ensuring a safe andsecure working environment within its own organization
e.g. health care programs, social wellbeing programs, safety
trainings. Moreover, it can promote and enforce (throughsigning of codes of conducts) good working conditions in its
supply chain.

DirectEnhancing positive contribution

MediumUmicore can contribute positively by its contribution
to the overall development of clean mobility i.e.
through rechargeable battery materials and catalysts for
reducing emissions.

DirectEnhancing positive contribution

Low

Umicore can contribute positively by increasing the shareof its sustainable business activities in the portfolio and by
employing new people, in its own operations as well as in therest of the supply chain.

Enhancing positive contribution

High

Umicore can contribute positively by its core activity ofrecycling and refining of metal bearing materials, by usingmaterials in its processes from end-of life or secondary origin.
Umicore can also contribute by making its operations moreenergy efficient and reducing air, water and soil pollution
through the use of new sustainable technologies.

DirectEnhancing positive contribution

High

Umicore can contribute positively by investing in R&D
programs to develop sustainable products and technologies
e.g. more efficient recycling of materials.

DirectEnhancing positive contribution

MediumUmicore can contribute by ensuring equality and implementing
inclusion policies within its own organization. Moreover, it canpromote social inclusion in its supply chain.

Work andeconomic growth

SDG 8. Promote sustained, inclusive andsustainable economic growth, full andproductive employment and decent work
for all

8.8 Protect labor rights and promote safe andsecure working environments for all workers,
including migrant workers, in particular women
migrants, and those in precarious employment

Direct9

9.1 Develop quality, reliable, sustainable andSDG 9.Build resilient infrastructure, promote resilient infrastructure, including regional andBuild
inclusive and sustainable industrialization transborder infrastructure, to support economic
resilient infrastructureand foster innovation.
development and human well-being, with a focus
on affordable and equitable access for all

99.2 Promote inclusive and sustainableindustrialization and, by 2030, significantly
SDG 9.Build resilient infrastructure, promote
Buildraise industry’s share of employment andinclusive and sustainable industrialization
resilient infrastructure
gross domestic product, in line with nationaland foster innovation.
circumstances, and double its share in least
developed countries

99.4 By 2030, upgrade infrastructure and retrofit
industries to make them sustainable, withSDG 9.Build resilient infrastructure, promote increased resource-use efficiency and greater
Build
inclusive and sustainable industrialization adoption of clean and environmentally soundresilient infrastructureand foster innovation.
technologies and industrial processes, with allcountries taking action in accordance with theirrespective capabilities

Direct9

9.5 Enhance scientific research, upgrade thetechnological capabilities of industrial sectors inall countries, in particular developing countries,
SDG 9.Build resilient infrastructure, promote
Build
including, by 2030, encouraging innovation
inclusive and sustainable industrialization
resilient infrastructureand substantially increasing the number ofand foster innovation.
research and development workers per 1 million
people and public and private research anddevelopment spending
10.2 By 2030, empower and promote the social,economic and political inclusion of all, irrespectiveof age, sex, disability, race, ethnicity, origin,religion or economic or other status

10

Reduce inequality

SDG 10. Reduce inequality within andamong countries.

Comments

High

Work andeconomic growth

8.7 Take immediate and effective measures toeradicate forced labor , end modern slavery andhuman trafficking and secure the prohibition andelimination of the worst forms of child labor,
including recruitment and use of child soldiers,and by 2025 end child labor in all its forms

8

Level ofcontribution

Umicore can contribute positively by ensuring that humanrights are respected within its supply chain i.e. by having
suppliers sign policies such as the "Responsible global supply
chain of minerals from conflict-affected and high risk areas"
policy (which encompasses a code of conduct, human rights
policy and sustainable procurement charter) and by executing
targeted controls, especially as the regions in which precious
metals and materials are sourced, are sensitive to issues suchas forced labor and violence. Umicore can also contribute bysupporting NGOs who are working in its sourcing areas e.g.
Fund for the Prevention of Child labor in Mining Communities
in DRC.

SDG 8. Promote sustained, inclusive andsustainable economic growth, full andproductive employment and decent work
for all

8

Sense of contribution

196

DirectEnhancing positive contribution

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

SDG #

10

11

SDG Name

SDG description

SDG sub-target

Potential
contribution

Sense of contribution

Level ofcontribution

197

Comments

Reduce inequality

SDG 10. Reduce inequality within andamong countries.

10.4 Adopt policies, especially fiscal, wage
and social protection policies, and progressively
achieve greater equality

DirectEnhancing positive contribution

MediumUmicore can contribute by implementing policies within its
own organization. It can also contribute in developing countries
to promote equality and fair remuneration at its suppliers e.g.
by signing codes of conduct.

Sustainable cities

11.2 By 2030, provide access to safe, affordable,
accessible and sustainable transport systems
for all, improving road safety, notably by
SDG 11. Make cities and human settlements
expanding public transport, with special attention
inclusive, safe, resilient and sustainable.
to the needs of those in vulnerable situations,
women, children, persons with disabilities andolder persons

DirectEnhancing positive contribution

Low

Umicore can contribute positively to sustainable transport byits activities on clean mobility i.e. producing rechargeable
battery materials for electrical cars and catalysts to clean
exhaust gases.

11

Sustainable cities

SDG 11. Make cities and human settlements 11.4 Strengthen efforts to protect and safeguard
inclusive, safe, resilient and sustainable.
the world's cultural and natural heritage

IndirectEnhancing positive contribution

MediumUmicore can contribute positively by limiting the miningof new metals by recycling metals and thus keeping
current landscapes and resources untouched. Umicore canalso contribute by reducing harmful emissions through the
production of catalysts, therefore reducing impacts such as
climate change impacts and acid rain.

11

Sustainable cities

11.6 By 2030, reduce the adverse per capita
SDG 11. Make cities and human settlements environmental impact of cities, including by
inclusive, safe, resilient and sustainable.
paying special attention to air quality andmunicipal and other waste management

Directminimizing negative impact

High

Umicore can minimize its negative impact by keeping control
over the pollution its operations may cause (heavy metals,
dioxins) in cities surrounding factories and mines.

12

Sustainableconsumption
and production

12.2 By 2030, achieve the sustainable
SDG 12.Ensure sustainable consumption andmanagement and efficient use of
production patterns.
natural resourcesHigh

Umicore can contribute positively by efficient use of resourcesin its operations e.g. using raw materials from secondary
sources, sourcing these resources in an ethical and sustainable
way (controlled by sustainable procurement practices ) andby the nature of its operations i.e. precious metals refining
and recycling.

12

Sustainableconsumption
and production

12.4 By 2020, achieve the environmentallysound management of chemicals and all
wastes throughout their life cycle, in accordance
SDG 12.Ensure sustainable consumption andwith agreed international frameworks, andproduction patterns.
significantly reduce their release to air, water andsoil in order to minimize their adverse impacts onhuman health and the environment

High

Umicore can minimize its negative impact by limiting andactively managing the negative impact of its operationsin terms of GHG emissions (efficient production, capturing
and transforming byproducts), in terms of metal emissions
to air, water and soil (process efficiency, filtration) andwaste management.

12

Sustainableconsumption
and production

12.5 By 2030, substantially reduce waste
SDG 12.Ensure sustainable consumption andgeneration through prevention, reduction,
production patterns.
recycling and reuse

DirectEnhancing positive contribution

High

Umicore can contribute positively by the nature of its businessactivities e.g. recovering metals from waste streams such ase-scrap and using materials from secondary sources. Umicore
can also minimize its negative impact by actively controllingand minimizing the waste generated by its own operations.

12

Sustainableconsumption
and production

12.6 Encourage companies, especially large andSDG 12.Ensure sustainable consumption and transnational companies, to adopt sustainableproduction patterns.
practices and to integrate sustainability
information into their reporting cycle

DirectEnhancing positive contribution

MediumUmicore can contribute positively by adopting sustainable
practices e.g. using materials from non-primary sources andby integrating sustainability information into its reporting cycle
e.g. in an integrated annual report.

12

Sustainableconsumption
and production

12.7 Promote public procurement practices that
SDG 12.Ensure sustainable consumption andare sustainable, in accordance with national
production patterns.
policies and priorities

DirectEnhancing positive contribution

MediumUmicore can contribute positively by implementing sustainableprocurement practices in its supply chain e.g. by signingand having suppliers sign a code of conduct, setting up ofsustainable procurement charters, carrying out audits,…

DirectDirectEnhancing positive contribution

minimizing negative impact

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

SDG #SDG Name

SDG description

SDG sub-target

Potential
contribution

Sense of contribution

Level ofcontribution

198

Comments

13.1 Strengthen resilience and adaptive capacity
to climate-related hazards and natural disasters inall countries

DirectEnhancing positive contribution

High

Umicore can contribute positively by the nature of its businessi.e. recycling minerals and metals, by using materials from
non-primary sources, by having a clear strategy and target
to reduce emissions (which will be validated by SBTi) and byaligning with the TCFD.

Directminimizing negative impact

MediumThrough its operations, Umicore emits GHG. To minimize thatnegative impact, Umicore has integrated the goal of 'net
zero GHG emissions' by 2035 in its corporate 'Let's go for
zero' strategy.

13

Climate Action

SDG 13. Take urgent action to combat
climate change and its impacts

13

Climate Action

SDG 13. Take urgent action to combat
climate change and its impacts

13.2 Integrate climate change measures into
national policies, strategies and planning

13

Climate Action

SDG 13. Take urgent action to combat
climate change and its impacts

13.3 Improve education, awareness-raising andhuman and institutional capacity on climatechange mitigation, adaptation, impact reductionand early warning

IndirectEnhancing positive contribution

Low

Umicore can contribute positively by undertaking public­
private partnerships on climate change mitigation e.g. on clean
energy and clean mobility and by creating awareness on how
its products can help mitigate climate change e.g. reducing
resource consumption by recycling of minerals.

14

Life below water

SDG 14. Conserve and sustainably use theoceans, seas and marine resources forsustainable development.

14.1 By 2025, prevent and significantly reduce
marine pollution of all kinds, in particular fromland-based activities, including marine debris andnutrient pollution

Indirect

minimizing negative impact

MediumUmicore can minimize its negative impact by limiting metal
pollution to water.

Life on land

SDG 15. Protect, restore and promotesustainable use of terrestrial ecosystems,
sustainably manage forests, combat
desertification, and halt and reverse landdegradation and halt biodiversity loss.

15.1 By 2020, ensure the conservation, restorationand sustainable use of terrestrial and inland
freshwater ecosystems and their services,in particular forests, wetlands, mountains
and drylands, in line with obligations underinternational agreements

MediumUmicore can minimize its negative impact by making sure thatthe mines from which it sources its materials are developed
to mitigate impacts and conserve the natural environment.
Umicore can also contribute by using resources from non­primary sources and by limiting the pollution and waste fromits own production processes, especially metal pollution towater sources in this case.

Life on land

SDG 15. Protect, restore and promotesustainable use of terrestrial ecosystems,
sustainably manage forests, combat
desertification, and halt and reverse landdegradation and halt biodiversity loss.

15.3 By 2030, combat desertification, restore
degraded land and soil, including land affected bydesertification, drought and floods, and strive toachieve a land degradation-neutral world

Low

Umicore can minimize its negative impact by limiting theemissions, pollution and waste from its own production
processes, thus mitigating climate change which can cause
droughts and floods. Umicore can also contribute by efficientwater use in its own operations and in the supply chain.

Life on land

SDG 15. Protect, restore and promotesustainable use of terrestrial ecosystems,
sustainably manage forests, combat
desertification, and halt and reverse landdegradation and halt biodiversity loss.

15.5 Take urgent and significant action to reducethe degradation of natural habitats, halt the lossof biodiversity and, by 2020, protect and preventthe extinction of threatened species

MediumUmicore can minimize its negative impact by making sure thatthe mines from which it sources its materials are developed
to mitigate impacts and conserve the natural environment.
Umicore can also contribute by using resources from non­primary sources and by limiting the pollution and waste fromits own production processes.

Peace,
justice, institutions

SDG16. Promote peaceful and inclusive
societies for sustainable development,
provide access to justice for all andbuild effective, accountable and inclusive
institutions at all levels.

Low

Umicore can contribute positively by setting up responsible
sourcing programs for its precious minerals and metals to avoid
any use of violence within its supply chain and to avoid thatthe proceedings from those minerals are misused to financearmed conflict in high-risk areas.

Peace,
justice, institutions

SDG16. Promote peaceful and inclusive
societies for sustainable development,
provide access to justice for all andbuild effective, accountable and inclusive
institutions at all levels.

MediumUmicore can contribute positively by setting up responsible
sourcing programs for its precious minerals and metals as
mining is an industry that is sensitive to forced child labor
due to the regions in which operations occur. Umicore canalso contribute by actively supporting programs/NGOs aimed
at preventing child labor.

15

15

15

16

16

16.1 Significantly reduce all forms of violence andrelated death rates everywhere

16.2 End abuse, exploitation, trafficking and allforms of violence against and torture of children

Indirect

Indirect

Indirect

Indirect

Indirect

minimizing negative impact

minimizing negative impact

minimizing negative impact

Enhancing positive contribution

Enhancing positive contribution

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverSDG description

SDG sub-target

Potential
contribution

SDG #SDG Name

16

Peace,
justice, institutions

SDG16. Promote peaceful and inclusive
societies for sustainable development,
provide access to justice for all andbuild effective, accountable and inclusive
institutions at all levels.

16.4 By 2030, significantly reduce illicit financial
and arms flows, strengthen the recovery andreturn of stolen assets and combat all forms oforganized crime

16

Peace,
justice, institutions

SDG16. Promote peaceful and inclusive
societies for sustainable development,
provide access to justice for all andbuild effective, accountable and inclusive
institutions at all levels.

16.5 Substantially reduce corruption and bribery inall their forms

Direct16

Peace,
justice, institutions

SDG16. Promote peaceful and inclusive
societies for sustainable development,
provide access to justice for all andbuild effective, accountable and inclusive
institutions at all levels.

16.7 Ensure responsive, inclusive, participatory
and representative decision-making at all levels

17Partnerships forthe goals

SDG 17. Strengthen the means of
implementation and revitalize theglobal partnership for sustainable
development: Finance.

17

Partnerships forthe goals

SDG 17. Strengthen the means of
implementation and revitalize theglobal partnership for sustainable
development: Finance.

Sense of contribution

Level ofcontribution

199

Comments

Low

Umicore can contribute positively by continuing andelaborating responsible sourcing programs for its precious
minerals and metals as those materials can be misused tofinance armed conflict.

Enhancing positive contribution

MediumUmicore can contribute positively by making sure there is nocorruption or bribery within its own organization and within its
supply chain, especially because the areas in which precious
minerals and metals are sourced are sensitive to armed conflictand corruption.

DirectEnhancing positive contribution

Low

Umicore can contribute positively by involving stakeholders
e.g. employees at lower management levels in strategic
company decisions.

17.16 Enhance the global partnership forsustainable development, complemented bymulti-stakeholder partnerships that mobilize andshare knowledge, expertise, technology andfinancial resources, to support the achievementof the sustainable development goals in all
countries, in particular developing countries

IndirectEnhancing positive contribution

Low

Umicore can contribute positively by engaging in the Global
Battery Alliance (GBA) to help shape a circular, responsible andsustainable battery value chain.

17.17 Encourage and promote effective public,
public-private and civil society partnerships,building on the experience and resourcing
strategies of partnerships

IndirectEnhancing positive contribution

Low

Umicore can contribute positively by engaging in thepartnerships such as Global Battery Alliance (GBA), Belgian
Alliance for Climate Action (BACA) and through its engagement
for STEM education.

IndirectEnhancing positive contribution

Umicore Integrated Annual Report 2021

Governance statements
G1

Corporate governance framework

201

G6 Relevant information in the event of a takeover bid

204

G11 Compliance with the CG Code 2020

206

G2 Corporate structure201

G7 Conflicts of interests (art. 7:115 through 7:117 bcca)

205

G12 Remuneration policy

206

G3 Shareholders

201

G8 Statutory auditor

205

G13 Remuneration report206

G4 Supervisory board

202

G9 Code of conduct

205

G5 Management board

204

G10 Market manipulation and insider trading

206

200

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

G1 Corporate governance framework
During the financial year 2021, Umicore (also the “Company”) was subject to the Belgian Code on
Corporate Governance 2020 (the “CG Code 2020”).
The English, Dutch and French versions of the CG Code 2020 can be found on the website of theBelgian Corporate Governance Committee.
The governance structure of the Company and the policies and procedures of the Umicore group aredescribed in detail the corporate governance charter of Umicore (the “CG Charter”), which was last
amended on 9 December 2020. The
CG Charter is available on the Umicore website or may beobtained 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 on aclear allocation of responsibilities. Such approach must ensure an optimal balance between a culture ofentrepreneurship 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 2021.

G2 Corporate structure
The management board (“directieraad”/“conseil de direction”) is entrusted with all matters not
specifically reserved to the supervisory board (“raad van toezicht”/“conseil de surveillance”) or theshareholders’ meeting by the Belgian Code of companies and associations (the “BCCA”) or Umicore’s
articles of association.

201

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
strategy of Umicore to the supervisory board and for Umicore’s operational management. It also approves
the strategies 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
encounter in the short, medium or longer term (see Risk Management section) and for ensuring that
adequate systems are in place to address these. The management board is responsible for defining andapplying Umicore’s approach to sustainable 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. In order to provide a group-wide
support structure, Umicore has regional management platforms in China, North America, Japan and SouthAmerica. Its corporate headquarters are based in Belgium (Brussels). This centre provides a number ofcorporate and support functions in the areas of legal, finance, human resources, tax, internal audit, public
and investor relations.

G3 Shareholders
3.1 Issued shares – capital structure

On 31 December 2021 there were 246,400,000 Umicore shares in issue.
The following shareholders have declared a participation of 3% or more (the below mentioned
participations are those as mentioned in the transparency declarations of the resp. shareholders):Gérald Frère, Ségolène Gallienne, Stichting Administratiekantoor Frère-Bourgeois, The
Desmarais Family Residuary Trust, Groupe Bruxelles Lambert SA/NV, Arthur Capital S.à r.l.

39,363,737 shares (15.98%)

Baillie Gifford & Co and Baillie Gifford Overseas Ltd.

24,660,116 shares (10.01%)

BlackRock Inc.

12,239,906 shares (4.97%)

APG Asset Management

6,728,778 shares (3.00%)

Also on 31 December 2021, Umicore owned 5,200,995 of its own shares representing 2.11% of its capital.
Information concerning the shareholders’ authorization for Umicore to purchase and/or sell its own shares

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcoverand the status of such buy-backs and divestments can be consulted in the
Umicore’s website.

CG Charter and on

During the year, 1,692,190 own shares were used in the context of the exercise of employee stock options
and 110,500 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 48,500 to senior management members.

3.2 Dividend policy and payment

In 2021, Umicore paid a gross dividend of € 0.75 per share relating to the financial year 2020. This was anincrease by € 0.375 compared to the gross dividend paid in 2020 in respect of the financial year 2019.
In July 2021, the supervisory board decided to pay a gross interim dividend of € 0.25 per share, which was
paid on 24 August 2021.

3.3 Shareholders’ meetings in 2021

The (annual and special) shareholders’ meetings were held digitally, with the possibility of postal andproxy voting, on 29 April 2021, due to the continuing Covid-19 pandemic.
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 andto the statutory auditor regarding their respective 2020 mandates. The annual shareholders’ meeting
also approved the grant of an identical profit premium in favour of the Umicore employees in Belgium.
At the same meeting, the shareholders appointed Birgit Behrendt as new independent member of thesupervisory board for a period of 3 years. Furthermore, the mandates of Thomas Leysen as member of thesupervisory board and of Koenraad Debackere, Mark Garrett and Eric Meurice as independent members of
the supervisory board, were renewed, also for 3 years. The annual shareholders’ meeting also approved
the remuneration report as well as the remuneration of the supervisory board for 2021. Details of the fees
paid to the members of the supervisory board in 2021 are disclosed in the remuneration report. Finally,
the annual shareholders’ meeting appointed EY Bedrijfsrevisoren BV / EY Réviseurs d’Entreprises SRL,
represented by Marnix Van Dooren & C° BV/SRL, represented by Marnix Van Dooren, and Eef Naessens
BV/SRL, represented by Eef Naessens, as new statutory auditor for 3 years.
The special shareholders’ meeting approved various change of control clauses in accordance with article
7:151 of the BCCA.

202

G4 Supervisory board
4.1 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.
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
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 2021, 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 2021. 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 7 active or former CEOs in its ranks. The supervisory board also hascollective experience in disciplines that are specifically relevant to Umicore’s non-financial 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 2021:● Birgit Behrendt was appointed independent member of the supervisory board for a period of three
years at the annual shareholders’ meeting held on 29 April 2021,● Liat Ben-Zur resigned as independent member of the supervisory board with effective date
29 April 2021.

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Umicore Strategy Performance Leadership Statements About Glossary Backcover203

Furthermore, the mandates of Thomas Leysen as member of the supervisory board, and those of
Koenraad Debackere, Mark Garrett and Eric Meurice as independent supervisory board members wererenewed for three years on 29 April 2021.

4.4 Audit committee

4.2 Meetings and topics

The audit committee is composed of three members of the supervisory board, two of them being
independent. It is chaired by Ines Kolmsee.

The supervisory board held ten regular meetings in 2021. Eight of these meetings were held by meansof a videoconference due to the covid-19 pandemic. On one occasion, the supervisory board also took
decisions by unanimous written consent.
The matters reviewed by the supervisory board in 2021 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),● approval of the agenda of an ordinary and a special shareholders’ meeting and calling ofthese meetings,● Environmental, social and sustainability governance (ESG) related topics, including but not limited toclimate action, risk and resilience, diversity, transparency and disclosures and more
● safety,● investment and divestment projects,● audit committee reports,● funding,● strategic opportunities and operational challenges,● business and technology reviews and market updates,● mergers & acquisitions projects and updates,● annual performance review of the CEO and the other members of the management board,● succession planning at the level of the supervisory board and the management board;● interim dividend distribution.
The supervisory board also visited the sites in Hoboken and Olen (Belgium).

4.3 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.

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 composition of the audit committee remained unchanged in 2021.
All the members of the audit committee have extensive experience in accounting and audit matters as
demonstrated by their curriculum.
The committee met five times in 2021, including four videoconference calls. Apart from the review ofthe 2020 full year and the 2021 half year accounts, the audit committee reviewed reports and discussed
matters related to internal audit, financial reporting, internal controls, group auditor succession and otheraudit-related matters. The 2022 internal audit plan was validated. The committee met with the group’s
auditor and reviewed and approved provided non-audit services. Members of the audit committee also
discussed ad hoc matters with senior management.

4.5 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 2021, 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 remained unchanged in 2021.
Nine nomination & remuneration committee meetings were held in 2021, including eight 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 2021. The committee also discussed the succession planningat the level of the supervisory board and the management board.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

G5 Management board
5.1 Composition

204

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 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 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.

The composition of the management board underwent the following changes in 2021:

6.2 Holders of securities with special control rights
There are no such holders.

● Bart Sap was appointed EVP Catalysis and member of the management board with effective date
1 March 2021,● Stephan Csoma, former EVP Recycling, resigned as member of the management board effective
1 April 2021,● An Steegen, former Chief Technology Officer, resigned as member of the management board effective
1 October 2021,● Mathias Miedreich was appointed CEO and chairman of the management board effective
1 October 2021,● Marc Grynberg, former CEO, resigned as CEO and member of the management board effective
1 November 2021,● Frank Daufenbach was appointed Chief Strategy Officer with effective date 6 December 2021.

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 of
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 2021, save for the 5,200,995 shares held by theCompany itself on that date (article 7:217 §1 of the BCCA).

Also in 2021, a number of responsibility reallocations took place within the management board, with Denis
Goffaux (formerly EVP Energy & Surface Technologies) being appointed EVP Recycling effective 1 April 2021
and Ralph Kiessling (formerly EVP Catalysis) being appointed EVP Energy & Surface Technologies effective
1 March 2021.

6.4 Employee stock plans where the control rights are not exercised directly by
the employees

On 31 December 2021 the management board was composed of 7 members, including the CEO.

6.5 Shareholders’ agreements

5.2 Performance review

The 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 place
on 10 February 2021.

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.

Umicore has not issued any such employee stock plans.

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.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

205

The Company’s articles of association were not amended in 2021.

G7 Conflicts of interests (art. 7:115 through 7:117 bcca)

6.7 Authorised capital – buy-back of shares

During 2021, no conflicts of interests or decisions/transactions as defined under articles 7:115 through 7:117
BCA were discerned at the level of the supervisory board or the management board.

The Company’s capital may be increased following a decision of the supervisory board within the limits ofthe 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 board1 to increase the Company’s share capital. The
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 2021, 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 into 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 1,270,000 own
shares in 2021 in implementation of the above authorization.

6.8 Agreements between the company and its directors or employees providing
for compensation if they resign, or are made redundant without valid reason,
or if their employment ceases because of a take-over-bid
For a closed group of employees an individual agreement has been put in place, applicable in the eventof a dismissal within 12 months after a change of control over the Company. As far as the members of the
management board are concerned, reference is made to the remuneration report and policy.

1

G8 Statutory auditor
Pursuant to the European Regulation 537/2014 of 16 April 2014 on specific requirements regarding
statutory audit, as supplemented by the opinion of the Belgian public oversight body, PwC
Bedrijfsrevisoren BV / PwC Reviseurs d'Entreprises SRL was no longer allowed to continue its statutory
auditor mandate for Umicore beyond the audit of the fiscal year ending 31 December 2020, and it
submitted its resignation for serious personal reasons with effective date 29 April 2021. As a consequence,the statutory audit mandate of PwC Bedrijfsrevisoren BV / PwC Reviseurs d'Entreprises SRL wasterminated prematurely.
In light of the above, the annual shareholders’ meeting held on 29 April 2021 appointed EY
Bedrijfsrevisoren BV / EY Réviseurs d’Entreprises SRL, as new statutory auditor for a renewable period of 3
years. The statutory auditor is represented by Marnix Van Dooren & C° BV/SRL, itself represented by Marnix
Van Dooren, and Eef Naessens BV/SRL, itself represented by Eef Naessens for the exercise of this mandate.
The Umicore policy detailing the independence criteria for the statutory auditor may be requested
from Umicore.

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.

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 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

G10 Market manipulation and insider trading

G13 Remuneration report

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.

REMUNERATION FOR THE MEMBERS OF THE SUPERVISORY BOARD

G11 Compliance with the CG Code 2020
During the financial year 2021, the Company has complied with all the provisions of the CG Code 2020,
except those provisions which are deviated from, for the reasons explained hereunder in this corporate
governance statement.
The sole provision of the CG Code deviated from in 2021, relates to the grant of stock options to the former
CEO. As explained in the remuneration policy, which was approved by the shareholders’ meeting held on
30 April 2020, the stock options granted to the former CEO vest immediately upon grant, as contractuallyagreed. This deviates from provision 7.11 of the CG Code 2020. However, even if they vest immediately, theoptions can only be exercised after three years, which is in line with the above provision 7.11.

G12 Remuneration policy
The remuneration policy (the “Policy”), which outlines the remuneration principles for the members of
Umicore’s supervisory board and management board and is effective since 1 January 2020, was approvedat 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). It is available
here.
On 26 November 2021 the nomination and remuneration committee presented a revised remuneration
policy (the “Proposed Policy”), which was approved by the supervisory board on 9 December 2021. The
Proposed Policy will be submitted to the annual shareholders’ meeting on 28 April 2022. If approved, it
will apply as of 1 January 2022.
The Proposed Policy provides objectives and remuneration with an increased focus on sustainable,
profitable growth, combining financial and sustainability performance in full alignment with the Let’s Go
for Zero ESG strategy. The review also responds to feedback received from shareholders and institutional
investors and contributes to Umicore’s efforts to increase disclosure.
For details on the main changes, see ‘Remuneration policy as of 2022’ at the end of the remuneration
report (G.13).

206

The remuneration of the members of the supervisory board is in accordance with the Policy andunchanged versus the previous year.

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)

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Umicore Strategy Performance Leadership Statements About Glossary Backcover207

2021 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 table 13.1.

13.1 Remuneration overview members of the supervisory boardin (€)
Name
Mandate

Start
date

End
date

Fixed
Fee

Shares1

Attendance
Fee

Number of meetings attended
Online/In person

Other
(Car)

60,00099,44050,0008/2

2,607

45,000

8/1

27,000

8/2

28,000

8/1

Leysen T.

257,047

Chairman of the supervisory board

19-11-2008

Chairman of the nomination & remuneration committee

19-11-2008

Armero M.

131,720

Member of the supervisory board

30-4-2020

Member of the nomination & remuneration committee

9-12-2020

27,00049,720Behrendt B.
Member of the supervisory board

68,70829-4-2021

18,19733,511

17,000

4/2

8,803

16,2097,500

3/0

27,00049,72025,000

8/2

27,000

8/1

25,000

8/2

Ben-Zur L.
Member of the supervisory board

32,51225-4-201729-4-2021

Chombar F.

128,720

Member of the supervisory board

26-4-2016

Member of the nomination & remuneration committee

26-4-2018

Debackere K.

148,720

Member of the supervisory board

26-4-2018

27,000Member of the audit Committee

26-4-2018

5,000

Member of the nomination & remuneration committee

9-12-2020

49,72015,000

4/1

27,0008/1

26,000

9/1

27,0009/027,0008/2

26,0004/1

Garrett M.

129,720

Member of the supervisory board

28-4-2015

Member of the nomination & remuneration committee

25-4-2017

27,00049,720Kolmsee I.

139,720

Member of the supervisory board

26-4-2011

27,000Chairman of the audit Committee

49,72028-4-2015

10,00028-5-2015

27,00049,72027,000

8/2

Member of the supervisory board

25-4-2019

27,00049,72025,000

8/2

Member of the audit Committee

25-4-2019

5,000

15,000

4/1

Meurice E.
Member of the supervisory board

Total

103,720

Raets L.

121,720

1 The share grant relates to the services rendered in the reported year. The shares were granted on 14 May 2021 and were valued at the fair market value of the share at € 49.72, 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.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Umicore Integrated Annual Report 2021

208

REMUNERATION FOR THE CEO AND THE OTHER MEMBERS OF THE
MANAGEMENT BOARD

A sign-on fee of € 1,000,000 has been paid in 2021 to cover the loss of unvested variable remunerationand equity awards Mathias Miedreich faced when changing companies.

The remuneration of Marc Grynberg and the other members of the management board was reviewed
by the supervisory board on 10 February 2021, on the basis of recommendations from the nomination
and remuneration committee following a comparison survey with BEL20 and European peer companies.
The remuneration for Marc Grynberg and other members of the management board included in 2021 thefollowing components: fixed remuneration, variable compensation, share-based compensation, pension
plans and other benefits.

Mathias Miedreich has been enrolled in the defined contribution plan, as in place for the other members ofthe management board joining as of 1 July 2018. He is in addition entitled to death-in-service and disability
benefits and the usual benefits such as a company car, medical insurance and representation allowance.
The company also pays for the tuition fees (secondary school) in Belgium.

Remuneration former CEO (Marc Grynberg)

All components of the remuneration earned by Mathias Miedreich for the reported year are detailed intable 13.2.

On proposal of the nomination and remuneration committee, the supervisory board of 10 February 2021
decided to maintain the annual fixed remuneration of Marc Grynberg at € 720,000 and the annual variable
cash remuneration potential at € 700,000.
80,000 stock options were granted for 2021 as part of the annual Umicore Incentive Stock Option Plan. In
addition, the supervisory board of 15 February 2022 decided to grant 8,334 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. Umicore and Marc Grynberg decided in mutual agreement to terminate the CEO contract witheffect on 1 November 2021. In recognition of Marc Grynberg’s long service within Umicore and within
the mandate of CEO, the supervisory board decided, on proposal of the nomination and remunerationcommittee, to pay to Marc Grynberg an amount of €1,800,000 gross.
All components of the remuneration earned by Marc Grynberg for the reported year are detailed intable 13.2.

Remuneration CEO (Mathias Miedreich)
On proposal of the nomination and remuneration committee, the supervisory board of 25 May 2021
decided to appoint Mathias Miedreich as CEO. Mathias Miedreich started the CEO mandate as of
1 October 2021.
The annual fixed remuneration of Mathias Miedreich has been set at € 1,000,000. The undeferred anddeferred variable compensation plans for the year of performance 2021 were not applicable to Mathias
Miedreich. Mathias Miedreich will participate in the short- and long-term variable compensation programs
as of the year of reference 2022. The total variable remuneration target has been set at € 1,200,000.

The supervisory board of 15 February 2022 decided to grant 500 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.

Remuneration other members of the management board
On proposal of the nomination and remuneration committee, the supervisory board of 10 February
2021 decided to maintain the fixed remuneration of each other member of the management board at€ 440,000. The annual variable cash remuneration potential increased from € 380,000 to € 400,000.
30,000 stock options per person were offered in 2021 (pro-rated for Bart Sap and Stephan Csoma) as partof the annual Umicore Incentive Stock Option Plan. Denis Goffaux received 10,000 additional stock options
following his foreign assignment in South Korea.
On proposal of the nomination and remuneration committee, the supervisory board of 20 September 2021
decided to appoint Frank Daufenbach as member of the management board, starting as of 6 December
2021. The annual fixed remuneration of Frank Daufenbach has been set at € 440,000. The undeferredand deferred variable compensation plans for the year of performance 2021 were not applicable toFrank Daufenbach. Frank Daufenbach will participate in the short- and long-term variable compensation
programs as of the year of reference 2022.
The supervisory board of 15 February 2022 decided to grant 7,000 Umicore shares per person for services
rendered in the reported year (pro-rated for Stephan Csoma and Bart Sap, and An Steegen). Frank
Daufenbach received 143 Umicore shares. 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 other members of the management board for thereported year are detailedin table 13.2.

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Umicore Strategy Performance Leadership Statements About Glossary Backcover209

13.2 Remuneration overview members of the management boardin (€)
Name, Position

MandateStart dateEnd date

Fixed Compensation1

Undeferred
Variable 50%2

Deferred Variable 50%3

Shares4

Stock
Options5

Pension Plans6

Other7

Total

Grynberg M., CEO

19/11/2008
31/10/2021

600,000

300,000

448,000

276,855684,800

186,118

1,853,020

Miedreich M., CEO

1-10-2021

250,00000

16,610052,2001,019,502

Csoma S., EVP

01/11/2012
31/03/2021

110,000

45,000243,200

58,135035,979Daufenbach D.,
EVP

6/12/2021

31,884

0

0

4,750

0

Goffaux D., EVP

01/07/2010

440,000

140,000

243,200

236,787

Kiessling R., EVP

01/02/2019

440,000

190,000

222,933

234,412

Nolens G., EVP

01/07/2015

440,000

170,000

243,200

Platteeuw F., EVP

01/11/2012

440,000

190,000

Sap B., EVP

1-3-2021

366,667

Steegen A., EVP

01/10/2018
30/09/2021

Reymondet P., EVP

01/08/2003
31/01/2019

Ratio fixed8

Ratio variable9

4,348,792

83%

17%

1,338,312

100%

0%

12,733505,047

43%

57%

6,657

452

43,744100%

0%342,400

130,780

74,385

1,607,551

76%

24%

256,800

91,87273,594

1,509,611

73%

27%

232,540

256,800

139,396

17,684

1,499,620

72%

28%

243,200

232,540

256,800

140,284

24,2791,527,103

72%

28%

158,333

0

193,805

214,000

76,5605,806

1,015,171

84%

16%

330,000

112,500

243,200

174,405

256,800

68,904

17,622

1,203,431

70%

30%

-

-

20,267----

20,267

0%100%

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 2021. The pay-out was done in 2022 in cash, except for M. Grynberg, D. Goffaux and B. Sap and G. Nolens (for 50%), who received the variable in the form of shares.
3 The deferred variable relates to the reference year 2019 and takes into account, over the years 2019-2020-2021, an average ROCE of 15.6%, resulting in a pay-out of 81% of the 2019 deferred target, and a compounded average EBIT growth% of 23.7%, resulting in a pay-out of 47% of the 2019 deferred target .
The pay-out was done in 2022 in cash, except for M. Grynberg, D. Goffaux and B. Sap and G. Nolens (for 50%), who received the variable in the form of shares.
4 The share grant relates to the services rendered in the reported year 2021 in the mandate of member of the management board. The shares were granted on 16 February 2022 and were valued at the fair market value of the share at € 33.22, 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 € 33.54 (lowest market quotation of the shares on the delivery date), € 35.50 (the closing share price on the delivery date).
5 The stock option grant relates to the services rendered in the reported year 2021 in the mandate of member of the management board. The stock options were granted on 11 February 2021 and were valued at a notional value of € 8.56 per option according to the Black & Scholes formula. S. Csoma did not accept
the 2021 stock options offer.
See table G13.4 for all stock option transactions in the course of the reported year.
6 Includes DC and DB contributions (service cost).
7 Includes the representation allowance, benefit in kind company car, insurance benefits and additional benefits for D. Goffaux following his foreign assignment in South Korea (housing, mobility premium, medical insurance), and for R. Kiessling for his frequent and extensive presence in Asia (mobility premium).
It also includes the long service recognition premium for M. Grynberg and the payment of the sign-on fee and tuition fees for M. Miedreich.
8 (1)+(4)+(5)+(6)+(7)/Total remuneration
9 (2)+(3)/Total remuneration

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Umicore Strategy Performance Leadership Statements About Glossary Backcover

COMPARITIVE INFORMATION ON THE CHANGE OF REMUNERATION –PAY RATIO
Table 13.3 provides an overview on the annual change of remuneration for the CEO, the other members ofthe management board (in aggregate), the mandates within the supervisory board and the committees,
the average employee remuneration on a full-time equivalent basis and the performance of 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 thenumber 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.

Members of the
management board(excl. CEO)

2019
vs
2018

2020
vs
2019

-

-

-

-

-

0.0%

0.0%

0.0%

0.0%

0.0%

-

-

-

-

-

Fixed

35.0%

0.0%

0.0%

0.0%

0.0%

Membersupervisory board

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

Membernomination &remuneration committee

Fixed
Attendancefee/meeting
Number of shares

2021
vs Comments
2020

0.0%

0.0%

0.0%

0.0%

0.0%

Number of shares

-

-

-

-

-

Fixed

-

-

-

-

-

0.0%

0.0%

0.0%

0.0%

0.0%

-

-

-

-

-

3.6%

3.7%

2.7%

7.5%

Attendancefee/meeting
Number of shares

2018
vs
2017

2019
vs
2018

2020
vs
2019

2021
vs Comments
2020

Fixed

3.0%

2.9%

0.0%

2.9%

0.0%

Company's
performance

2017

2018

2019

2020

2021

Type of remuneration

Average employee remuneration on a full time equivalent basis% change versus
previous year

5.1%

Variable

27.0%-24.8%

-5.6%

37.9%

57.7%

ROCE

15.1%

15.4%

12.6%

12.1%

22.2%

Number of shares

0.0%

0.0%

-3.8%

0.0%

0.0%

EBIT M€

410

514

509

536

971

Number of options

0.0%

0.0%

-6.7%

0.0%

-31.4%

Pension + other

4.8%

1.1%

8.2%

13.0%

6.7%

% ROCE change versus
previous year

3.4%

2.0%

-18.2%

-4.0%

83.5%

% EBIT change versus
previous year

16.8%

25.4%

-1.0%

5.4%

81.1%

Fixed

2.5%

3.3%

0.4%

4.5%

0.0%

Variable

31.1%-28.0%

18.3%

10.6%

58.2%

Number of shares

0.0%

0.0%

-5.4%

0.0%

-0.9%

Number of options

0.0%

0.0%

-14.3%

5.6%

0.0%

Pension + other

-7.4%

-2.3%

1.9%

13.8%

-6.1%

Remuneration
supervisory board

Type of remuneration
Fixed

0.0%

50.0%

0.0%

0.0%

0.0%

Chairmansupervisory board

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%

-

-

-

-

-

Chairmanaudit committee

2018
vs
2017

2017
vs
2016

Annual Change

CEO

Chairmannomination &remuneration committee

Memberaudit committee

13.3 Comparative table on the change of remuneration and company
performance over the last five reported financial years

Remuneration
management board

2017
vs
2016

Annual Change

Number of shares

1210

1 The long service recognition premium is not included for this comparison.

The pay ratio 2021 between the highest and lowest pay level at Umicore (Belgium) was equal to 57. The
ratio takes into account the total remuneration on a full-time equivalent basis, including fixed, variable
and share-based remuneration, other incentive premiums, plans and benefits. Exceptional payments are
excluded from the calculation.

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211

SHARE AND SHARE OPTION PLANS AND TRANSACTIONS 2021

Details of all options exercised and other share-related transactions can be found on the FSMA website.

Management board share option transactions 2021

Management board share grant 2021

Table 13.4 provides an overview of the number of stock options granted for the services rendered in 2021
in the mandate of member of the management board, the number of stock options exercised and expiredin the course of the reported year, as well as the main provisions of the outstanding stock option plans.

Table 13.5 provides an overview of the number of shares granted in 2021 for the services rendered in2020 in the mandate of member of the management board. 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,€ 48.00. The shares are subject to a 3 year lock-up until 10 February 2024 included, and are not subject toforfeiture conditions.

13.4 Management board share option transactions
Transactions in the reported year 2021
Name, Position

Options Granted

Grynberg M., CEO - until 31/10/2021

ISOP 2021

80,000Miedreich M. CEO - as of 1/10/2021

ISOP 2021

0

Csoma S., EVP - until 31/3/2021

ISOP 2021

0

Daufenbach F., EVP - as of 6/12/2021

ISOP 2021

0

Goffaux D., EVP

ISOP 2021

Kiessling R., EVP

ISOP 2021

40,00030,000

Options Exercised
ISOP 2015

75,000ISOP 2016

150,000

ISOP 2017

150,000

Options
ExpiredISOP 2017

35,00035,000ISOP 2017

35,000ISOP 2018

35,000ISOP 2017

12,000ISOP 2014

12,000ISOP 2015

12,000ISOP 2016

35,000ISOP 2017

35,000ISOP 2021

30,000

Platteeuw F., CFO

ISOP 2021

30,000-

Sap B., EVP - as of 1/3/2021

ISOP 2021

25,000ISOP 2018

Steegen A., EVP - until 30/9/2021

ISOP 2021

30,0000-

ISOP 2016

Nolens G., EVP

0

0
0

0

0
9,000
-

0
0

13.5 Management board share grantName, Position

Number of shares
received in 2021

Grynberg M., CEO1

10,000Csoma S., EVP2

7,000

Goffaux D., EVP

7,000

Kiessling R., EVP

7,000

Nolens G., EVP

7,000

Platteeuw F., CFO

7,000

Steegen A., EVP3

7,000

Comment

1 until 31/10/2021
2 until 31/3/2021
3 until 30/9/2021

As per the Policy, the CEO is required to build up, within 3 years from the date of appointment, and to retain
minimum 30,000 Umicore shares throughout his tenure. This requirement is also applicable to the othermembers of the management board, in respect of a minimum of 15,000 shares.

Main provisions of the outstanding stock option plans
ISOP Plan

Grant Date

Exercise Price1

Exercise window, Start - End

2021

11/02/2021

47.08011/02/2024 - 10/02/2028

2020

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

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

On 31 December 2021 the members of the management board reached this minimum shareholder
requirement, with exception of M. Miedreich, F. Daufenbach, R. Kiessling and B. Sap, being still in the 3
years’ time frame to build up the required minimum.
The members of the management board collectively held a total number of 212,747 shares on
31 December 2021.

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Umicore Strategy Performance Leadership Statements About Glossary Backcover

212

Supervisory board share grant 2021

The Proposed Policy also responds to feedback received from shareholders and institutional investors. It
provides for increased disclosure, in particular around our performance goals in relation to variable pay.

Table 13.6 provides an overview of the number of shares granted in 2021 to the members of thesupervisory board for the services rendered in 2021. The shares were granted on 14 May 2021 and werevalued at the fair market value of the share at € 49.72, equivalent to 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. The shares have to be held until at least one year after the member leaves the supervisoryboard and until at least three years after the delivery date.

For the establishment of the Proposed Policy, the nomination and remuneration committee has taken
market benchmarks into consideration with the aim to offer a well-balanced remuneration, tailoredspecifically to its market segments and scale, ensuring that Umicore can attract, motivate and retain theright talent for the management and supervisory board.
The proposed changes relate to the remuneration of the members of the management board:

13.6 Supervisory board share grantName, Mandate in the supervisory board

Shares held by serving
members on 31 Dec 2021

Number of shares
received in 2021

Comment

Leysen T., Chaiman

814,000

2,000

Armero M. , Member

1,669

1,000

674

674

Pro rata the services in
2021, as of 29/04/2021

326

Pro rata the services in
2021, until 29/04/2021

Behrendt B. , Member
Ben-Zur L. , Member until 29/4/2021
Chombar F. , Member

5,684

1,000

Debackere K. , Member

3,684

1,000

Garrett M. , Member

15,386

1,000

Kolmsee I. , Member

9,610

1,000

Meurice E. , Member

6,666

1,000

Raets L. , Member

2,000

1,000

The members of the supervisory board collectively held a total number of 859,373 shares on
31 December 2021.

APPROVAL OF THE 2020 REMUNERATION REPORTThe 2020 remuneration report was approved by the shareholders’ meeting with a majority of 81.49% of
the votes cast (disregarding the abstention votes, as provided under Belgian company law).

PROPOSED NEW REMUNERATION POLICY AS OF 2022
The remunation policy has been reviewed in with the evolution of the company strategy. The purpose of
the changes, as reflected in the Proposed Policy, is to ensure Umicore’s remuneration structure and policy
are both in line with current international remuneration trends and that they reward fairly and responsibly.

● Revised short- and long-term variable remuneration plans, addingto revised financial goals alsosustainability objectives in alignment with Umicore’s Let’s Go for Zero ESG strategy.
● Replacement of the current deferred cash compensation plan with a Performance Share Unit Plan (PSU
plan) for the long-term variable remuneration.
● Reduced number of unconditional share awards, redistributed over increased variable remunerationand fixed annual fee. A pay mix with a higher portion of variable remuneration reinforces the link
between reward and sustainable performance.
● Increased timescale of shareholding build-up from 3 to 5 years.
● Possibility to grant a sign-on fee for external recruitment to cover the loss of unvested variable
remuneration and equity awards faced by the individual when changing companies.
The Proposed Policy will be submitted to Umicore’s annual shareholders’ meeting on 28 April 2022,
and if approved, will apply as of 1 January 2022, further strengthening alignment to Umicore’s strategic
objectives and driving strong sustainable performance.

Alignment to strategic objectives
The short- and long-term variable programs have been redesigned to further strengthen highperformance to achieve Umicore’s strategic objectives, delivering sustained superior shareholder value
and contributing to a cleaner and healthier world. Including stretched and achievable targets in thevariable remuneration demonstrates Umicore’s commitment to achieve meaningful progress against the
Let’s Go for Zero goals and to enhance sustainable long-term value creation.

Umicore Integrated Annual Report 2021

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SHORT-TERM INCENTIVE: THE ANNUAL VARIABLE COMPENSATION PLAN, YEAR OF REFERENCE 2022

213

The proposed PSU plan replaces the cash deferred variable program, and moves from 100% ROCE and EBIT
to balanced financial and ESG targets:● Group financial performance objectives are split evenly between average ROCE and Total Shareholder
Return versus a peer group. The peer group is composed of Air Liquide, Albemarle, Aurubis, BASF,
Boliden, Clariant, Croda, Johnson Matthey, LG Energy Solution, Linde, Samsung SDI, Solvay. The
supervisory board will review the peer group from time to time to ensure it is as relevant as possible.
● Group sustainability performance objectives are in line with Umicore’s Let’s Go for Zero strategy andrelate to climate, health & safety and diversity. A Diversity of Thought Index has been designed at
the level of senior management and focuses on how Umicore is moving the needle in terms of
demographic and cognitive diversity through 3 pillars, gender diversity, international diversity anddiversity of experience.

The proposed short-term variable compensation plan shifts from fully individual and discretionary to abalanced and specified remuneration:● Group financial performance objectives are split evenly between the quality of the financial results(ROCE) and company growth (Actual adjusted EBITDA versus targeted adjusted EBITDA at like-for-like
precious metal prices).
● Group sustainability performance objectives are split between diversity (zero inequality), health andsafety (zero harm), in line with Umicore’s Let’s Go for Zero strategy.
● Individual performance objectives are based on financial performance, progress against business andsustainability strategic objectives (tied to economic performance, value chain and ESG goals) andadherence to the Umicore values.
LONG-TERM INCENTIVE: PERFORMANCE SHARE UNIT PLAN (PSU), YEAR OF REFERENCE 2022

Key features of the PSU plan:● The performance period is three years.
● The PSUs are granted conditionally and vest after three years from the date of grant, depending on theachievement of the pre-set performance goals.
● A service condition applies for the members of the management board joining as of 1 April 2021.
See table 13.7 for more details on the 2022 performance objectives.

Driving strong sustainable performance
The number of unconditional share awards will reduce as of the year of performance 2022 and will be
redistributed over increased variable remuneration and fixed annual fee. The remuneration composition
for the CEO shifts from 80% fixed and 20% variable (former CEO pay mix) to 60% fixed and 40% variable,
and for the members of the management board from 70% fixed and 30% variable to 60% fixed and
40% variable. The total variable remuneration consists of 35% sustainability objectives, 40% financial
objectives and 25% individual. This revised pay mix with a higher portion of variable remuneration
reinforces the link between reward and strong sustainable performance.

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Umicore Strategy Performance Leadership Statements About Glossary Backcover214

13.7 Overview of the 2022 performance objectives and weighting
Weight2022 Target

Threshold, Award %Maximum, Award %

ROCE

15%

12.5%

Adjusted EBITDA

15%

Defined by the supervisory board

Process Safety Event Frequency Rate

5%

Reduction of 10% by 2022 versus 2021 + the absence of process safety events withmaterial environmental or health impact

Total Recordable Injury Rate (TRIR)

10%Reduction of 5% by 2022 vs. 2021

90%, 0% award

100%, 100% award

Recruitment of women managers

5%

35% recruited

30% recruited, 0% award

35% recruited, 100% award

Individual performance

50%

Defined yearly

0% award

120% award

25%

12.5%

7.5%, 0% award

17.5%, 150% award

Ranked in top 50% of 12 peers

Rank:outside top 50%, 0% award
6th place, 25% award
5th place, 50% award
4th place, 75% award

Rank:
3rd place, 100% award
2nd place, 125% award
1st place, 150% award

Annual Variable compensation plan (1y performance)

17.5%, 0% award

17.5%, 150% award

95%, 50% award
Below 95%, 0% award

105%, 150% award

90%, 0% award

100%, 100% award

Performance Share Unit Plan (3y performance)
ROCE

Total Shareholder Return (TSR)25%

GHG emissions

25%

Diffuse emissions
Diversity of thought index

Scope 1+2: Reduction of 6.2% by 2024 vs. 201990%, 0% award

100%, 100% award

Scope 3: Submit scope 3 target to SBTi by the end of June 2022 for validation

Not reached, 0% award

Reached, 100% award

12.50%

Reduction of 14.7% lead/38.8 % arsenic
by 2024 vs 2021

90%, 0% award

100%, 100% award

12.50%

Increase of 12% by 2024 vs. 2021

90%, 0% award

100%, 100% award

1 Umicore does not disclose the adjusted EBITDA target which is commercially sensitive information.

Umicore Integrated Annual Report 2021

About this report
About this report

216

GRI/SASB index

217

WEF index

220

TCFD index

222

Assurance reports

223

215

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover216

About this report
An integrated approach

Data

The Umicore annual report offers a comprehensive view of performance for 2021 and reflects our
integrated strategic approach which combines economic, environmental and social performance targets.
This report further clarifies the integrated nature of Umicore’s performance using the “six capitals”
approach to integrated reporting defined by the International <IR> Framework.

The financial data are collected through our financial management and consolidation process. The
environmental and social data are collected through environmental and social data management systems
and integrated into a central reporting tool, along with the financial data.

This report contains an overview of our strategic approach, an annual review of key performance aspects
as they relate to our Clean Mobility & Recycling and Let’s go for Zero strategies, a view of leadership andgovernance, followed by the full financial, environmental, social and governance statements and notes.

Assurance

This report has been prepared in accordance with the GRI Standards: Core option. As part of ourcommitment to increased disclosure, this report also contains first elements towards meeting SASB, TCFD
and WEF disclosure guidance. To find disclosure in accordance with these frameworks, please consult theindexes (p. 217). The report also discloses which Umicore activities are eligible for the EU Taxonomy.
Umicore has aligned the corporate reporting with the non-financial reporting requirements set out inarticle 3:32, §2 of the Belgian Companies’ and Associations’ Code.
All elements of the Annual Report can be consulted in English and in Dutch by browsing the dedicatedwebsite annualreport.umicore.com or downloading the report from that address.

Reporting scopeThis report covers our operations for the 2021 calendar year which is also the Umicore fiscal year, andreports on our progress towards our Clean Mobility & Recycling and Let’s go for zero objectives. The scopeof objectives and a brief description of the methodology behind performance indicators are included in thestatements section of the report. Where data are available, the performance indicators in the document
are reported with a comparison base referring back by 5 years.
The financial scope of this report covers all fully consolidated operations and the financial contributionsof all associate and joint venture companies. The environmental and social scope is limited to all fully
consolidated operations – any divergence from this scope is explained in the relevant chapter or note in
the report. Definitions for the terms used throughout this report can be found in the
Glossary for thereport, online.

This report has been independently verified by Ernst & Young (EY). EY’s audit of financial information isbased on the full set of IFRS consolidated financial statements on which it has expressed an unqualified
opinion. This full set of IFRS consolidated financial statements and the auditor’s report thereon, can befound on (p. 109)-(p. 180) and (p. 223).The social and environmental information included in this reporthas been prepared on the basis of the same recognition and measurement principles that have beenused to prepare the social and environmental statements,(p. 181)- (p. 200). EY’s report on the social andenvironmental statements can be found on (p. 228). This report has been prepared in accordance with the
GRI Standards: Core option. A full GRI index can be found on (p. 217).

Presentation & feedback
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.
Umicore also commits to consider all improvement points recommended by the independent auditor (EY)in its subsequent reporting cycles. General reader feedback is encouraged on both the online pdf and web
versions of the report. Feedback received on our previous reports has been considered in the preparationof this report.
To share your feedback on this report, visit:

UMICORE.COM/AR-FEEDBACK

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GRI/SASB index
STANDARDSREFERENCE

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DISCLOSURE

STANDARDSREFERENCE

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DISCLOSURE

ORGANIZATIONAL PROFILE

Corporate governance statements: G7, G9-G11;
GRI 102-25

GRI 102-1

Name of the organization

Front coverGRI 102-2

Activities, brands, products, and services

GRI 102-3

Location of headquarters

Back coverGRI 102-4

Location of operations

Social statements

GRI 102-5

Ownership and legal form

Back coverGRI 102-6

Markets served

About us; Our business; Financial; Operations

GRI 102-7

Scale of the organization

Umicore at a glance; Social statements: S2; Financial
statements: consolidated balance sheet

GRI 102-8

Information on employees and other workers

Social statements: S2

GRI 102-9

Supply chain

Society

GRI 102-10
GRI 102-11

Corporate Governance Charter;

Conflicts of interest

Codeof Conduct
GRI 102-26

Role of highest governance body in setting purpose, values,
Goverance; Corporate governance statements: G2
and strategy

GRI 102-27

Collective knowledge of highest governance bodySupervisory Board; Corporate governancestatements: G4

GRI 102-28

Evaluating the highest governance body’s performance

Corporate governance statements: G4

GRI 102-29

Identifying and managing economic, environmental, andsocial and societal impacts

Aiming for impact; Management approach: Risks andopportunities overview

GRI 102-30

Effectiveness of risk management processes

Risks and opportunities overview

Significant changes to the organization and its supply chain Financial, Operations, Society

GRI 102-31

Review of economic, environmental, and Social andsocietal topics

Risks and opportunities overview; Management
approach; Corporate governance statements: G4

Precautionary principle or approach

Risks and opportunities overview

GRI 102-12

External initiatives

COSO; OECD Guidelines; ILO Human Rights; SRI, FTSE;
PACI; GRI; IIRCSASB RTCH-210a.1

Discussion of engagement processes to manage risk andopportunities associated with community interests

Risks and opportunities overview; Environment;
Society; TCFD index

GRI 102-13

Membership of associations

Society

SASB RTCH-530a.1

Discussion of corporate positions related to government
regulations and/or policy proposals that addressenvironmental and social factors affecting the industry

Society; Management approach; Risks andopportunities overview

GRI 102-14

A statement from the most senior decision-maker ofthe organization

CEO and Chairman's review

GRI 102-32

Highest governance body’s role in sustainability reporting Management approach

GRI 102-15

Key impacts, risks, and opportunities

Risks and opportunities overview

GRI 102-33

Communicating critical concerns

STRATEGY

Corporate governance statements: G1, G3, G9, G10,
G11;

Corporate Governance Charter;
Code of Conduct

GRI 102-16
GRI 102-17

Values, principles, standards, and norms of behavior
Mechanisms for advice and concerns about ethics

Code of Conduct;

GRI 102-34

Nature and total number of critical concerns

About us; Corporate governance statements: G1,
G9; Employees

The Umicore Way;GRI 102-35

Remuneration policies

GRI 102-36

Process for determining remuneration

GRI 102-37

Stakeholders’ involvement in remuneration

GRI 102-38

Annual total compensation ratio

not reported

GRI 102-39

Percentage increase in annual total compensation ratio

not reported

Code of Conduct; Employees

GOVERNANCE
GRI 102-18

Governance structure

Governance; Corporate governance statements: G2,
G4, G5

GRI 102-19

Delegating authority

Management approach

GRI 102-20

Executive-level responsibility for economic, environmental,
Management Board; Management approachand social and societal topics

GRI 102-21

Consulting stakeholders on economic, environmental, andAiming for impact
social and societal topics

not reported
Remuneration report;
Charter;

Remuneration report;
Charter;

Corporate Governance

Code of Conduct

Remuneration report;
Charter;

Corporate Governance

Code of Conduct

Corporate Governance

Code of Conduct

STAKEHOLDER ENGAGEMENT

Composition of the highest governance body andits committees

Governance; Supervisory Board; Corporate
governance statements: G2

GRI 102-40

List of stakeholder groups

Aiming for impact

GRI 102-23

Chair of the highest governance body

Governance; Supervisory Board; Corporate
governance statements: G2

GRI 102-41

Collective bargaining agreements

Employees; Social statements

GRI 102-42

Identifying and selecting stakeholders

Aiming for impact

GRI 102-24

Nominating and selecting the highest governance body

Corporate governance statements: G4

GRI 102-43

Approach to stakeholder engagement

Aiming for impact

GRI 102-44

Key topics and concerns raised

Aiming for impact

GRI 102-22

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DISCLOSUREREPORTING PRACTICEGRI 102-45

Entities included in the consolidated financial statements
Defining report content and topic boundaries

Aiming for impact

GRI 102-47

List of material topics

Aiming for impact

GRI 102-48

Restatements of information

Management approach; Environmental statements;
Social statements; About this report

GRI 102-49

Changes in reporting

About us; Umicore at a glance; Environmental
statements; About this report

GRI 102-50

Reporting period

Front cover; Inside front cover; About this report

GRI 102-51

Date of most recent report

GRI 102-52

Reporting cycle

GRI 102-53

Contact point for questions regarding the report

Back cover:

GRI 102-54

Claims of reporting in accordance with the GRI Standards

Inside front cover; About this report

GRI 102-55

GRI content index

This section; About this report

GRI 102-56

External assurance

Assurance reports

Annual report website
Front cover; Inside front cover;Annualreport website
Annelies Storme

MANAGEMENT APPROACH
GRI 103-1

Explanation of the material topic and its boundary

Aiming for impact

GRI 103-2

The management approach and its components

Management approach

GRI 103-3

Evaluation of the management approach

Management approach

ECONOMIC PERFORMANCE
Umicore at a glance; Society key figures; Financial
statements: F8, F9, F39; Key figures

GRI 201-1

Direct economic value generated and distributed

GRI 201-3

Defined benefit plan obligations and other retirement plans Financial statements: F27

GRI 201-4

Financial assistance received from government

Consolidated statement of cash flow

MARKET PRESENCEGRI 202-2

Similar scope covered in Social statements: S2

Infrastructure investments and services supported

Operations; Environment; Society; Social Statements
S6; Key figures

ANTI-CORRUPTIONGRI 205-1

Operations assessed for risks related to corruption

GRI 205-2

Communication and training about anti-corruption policies All employees receive informal training on the
Code of Conduct when joining the company
and procedures

Risks and opportunities overview

ANTI-COMPETITIVE BEHAVIORGRI 206-1

Legal actions for anti-competitive behaviour, anti-trust, andFinancial statements: F36
monopoly practices

MATERIALS
GRI 301-2

Recycled input materials used

GRI 302-1

Energy consumption within the organization

Environment; Environmental statements: E6

GRI 302-3

Energy intensity

Environment; Environmental statements: E6

GRI 302-4

Reduction of energy consumption

Environment; Environmental statements: E6

SASB RTCH-130a.1

Total energy consumed, percentage grid electricity,
percentage renewable, total self-generated energy

Environment; Environmental statements: E6

WATER
GRI 303-2

Environment; Environmental statements: E5

GRI 303-3

Limited disclosure; Environment; Environmental
statements: E4

SASB RTCH-140a.1

Total water withdrawn, total water consumed, percentage
Limited disclosure; Environment; Environmentalof each in regions with High or Extremely High Baseline
statements: E4
Water Stress (https://www.wri.org/initiatives/aqueduct)

EMISSIONSGRI 305-1

Direct scope 1 GHG emissions

SASB RTCH-110a.2

Discussion of long-term and short-term strategy or plan to
manage scope 1 emissions, emissions reduction targets, Environment; Sustainability
and an analysis of performance against those targets

Environment; Environmental statements: E7

GRI 305-2

Energy indirect scope 2 GHG emissions

Environment; Environmental statements: E7

GRI 305-7

Nitrogen oxides NOx, sulphur oxides SOx, and othersignificant air emissions

Environment; Environmental statements: E5

SASB RTCH-120a.1

Air emissions of the following pollutants: NOX (excluding
N2O), SOX, volatile organic compounds (VOCs) andhazardous air pollutants (HAPs)

Environment; Environmental statements: E5

GRI 306-3

Waste generated

Environment; Environmental statements: E3

GRI 306-4

Waste diverted from disposal

Environment; Environmental statements: E3

SASB RTCH-150a.1

Amount of hazardous waste generated,
percentage recycled

Environment; Environmental statements: E3

WASTE

SUPPLIER ENVIRONMENTAL ASSESSMENTGRI 308-2

Negative environmental impacts in the supply chain andactions taken

Society; Sustainable Products & Services

New employee hires and employee turnoverUmicore at a glance; Employees; Social statements:
S2, S3; Key figures

EMPLOYMENTINDIRECT ECONOMIC IMPACTS
GRI 203-1

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ENERGY
About us; Umicore at a glance; Financial; Corporate
governance statements: G2; Financial statements:
F5, F17

GRI 102-46

Proportion of senior management hired from thelocal community

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Umicore at a glance; Environment

GRI 401-1

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Occupational health and safety management system

Management approach-workforce performance;
Employees; Risks and opportunities overview;

GRI 405-1

Social Statements S4, S5;

CHILD LABOR

Global framework

Agreement on Sustainable Development;
EcoVadis CSR Scorecard

GRI 403-2

Hazard identification, risk assessment, andincident investigation

Risks and opportunities overview; Management
approach-workforce performance
Management approach-workforce performance;

GRI 403-3

Occupational health services

Employees;

Umicore occupational healthand safety
GRI 403-4

DISCLOSURE

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DIVERSITY AND EQUAL OPPORTUNITY

OCCUPATIONAL HEALTH AND SAFETY

GRI 403-1

STANDARDSREFERENCE

219

Employees; Social statements: S2; Management
Worker participation, consultation, and communication on
approach-workforce performance;
Umicoreoccupational health and safety
occupational health and safety

GRI 403-5

Worker training on occupational health and safety

Employees; Risks and opportunities overview Talent attraction & retention; Social statements:
S2, S3

GRI 403-6

Promotion of worker healthManagement approach-workforce
performance; Employees
Umicore Global Sustainable Sourcing

GRI 403-7

Prevention and mitigation of occupational health and safety
Policy; Society; Management approach-workforce
impacts directly linked by business relationships
performance; Employees

GRI 403-8

Workers covered by an occupational health and safety
management system

Management approach-workforce performance;
Employees; Exposure hours are not reported. The
number of LTAs for employees and contractors
is more relevant to supporting Umicore’s zero
LTA target

GRI 403-9

Work-related injuries

Employees; Social statements S2, S3; Key figures

GRI 403-10

Work-related ill health

Employees; Social statements S2, S3

SASB RTCH-320a.1(1)Total recordable incident rate (TRIR) and (2) fatality rate
Employees; Social statements S4for direct employees and contract employees

SASB RTCH-320a.2

Description of efforts to assess, monitor and reduce
exposure of employees and contract workers to long-term Employees; Social statements S5(chronic) health risks

SASB RTCH-540a.1

Process Safety Incidents Count (PSIC), Process Safety Total
Incident Rate (PSTIR) and Process Safety Incident Severity Employees; Social statements S4Rate (PSISR)

TRAINING AND EDUCATIONGRI 404-1

Average hours of training per year per employee

Employees; Social statements: S3; Key figures

GRI 404-2

Programs for upgrading employee skills and transition
assistance programs

Employees; Social statements: S3

GRI 404-3

Percentage of employees receiving regular performanceand career development reviews

Employees; Social statements: S3

GRI 408-1

Diversity of governance bodies and employees

Leadership; Corporate governance statements: G4;
Employees; Social statements: S2Society; Risks and opportunities overview Operations and suppliers at significant risk for incidents of
Sustainable & ethical supply;
Umicore Global
child labor
Sustainable Sourcing Policy

FORCED OR COMPULSORY LABORGRI 409-1

Umicore Global Sustainable
Operations and suppliers at significant risk for incidents of Society;forced or compulsory labor
Sourcing Policy

SUPPLIER SOCIAL ASSESSMENTGRI 414-2

Negative Social and societal impacts in the supply chain and Society; Maximizing positive impact; Social
actions taken
statements: S7

CUSTOMER HEALTH AND SAFETY
GRI 416-1

Assessment of the health and safety impacts of product andSustainable Products & Services
service categories

MARKETING AND LABELLINGGRI 417-1

Requirements for product and service informationand labelling

Sustainable Products & Services

SASB RTCH-410a.1

Revenue from products designed for use-phaseresource efficiency

Sustainable Products & Services; Environment

OTHER MATERIAL TOPICS REPORTED
Criticality of raw materials

To complement the reporting on GRI 308: Supplier
Environmental Assessment and GRI 414: SupplierSocial Assessment. See Society; Managing risks
effectively: sustainable & ethical supply

Sustainable products and services

To complement reporting on GRI 301: Materials. See
Society; Sustainable Products & Services

Process safety

To complement reporting on GRI 403: Occupational
Health and Safety. See Employees

Metal emissions to air and water

To complement reporting on GRI 305: Emissions. See
Environment. Environmental statements: E5

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WEF index
THEME

DISCLOSURE

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THEME

GOVERNANCE

Governing
purposeSetting purpose
The company’s stated purpose, as the expression of the means bywhich a business proposes solutions to economic, environmental andsocial issues. Corporate purpose should create value for all stakeholders,
including shareholders.

The Umicore Way; About us;
Goverance; Corporate governancestatements: G2

The Umicore Way; About
Purpose-led management
How the company’s stated purpose is embedded in company strategies, policies us; Our business; Goverance;
Management Approach; Corporate
and goals.
governance statements: G2

Material issues impacting stakeholders
Stakeholder
A list of the topics that are material to key stakeholders and the company, how Aiming for impact
engagement
the topics were identified and how the stakeholders were engaged.

Ethicalbehavior

Integrating risk and opportunity into business process
Company risk factor and opportunity disclosures that clearly identify the principal
Risk andmaterial risks and opportunities facing the company specifically (as opposed
Managing risk effectively; Risks andopportunity to generic sector risks), the company appetite in respect of these risks, howopportunities overview
oversight
these risks and opportunities have moved over time and the response to thosechanges. These opportunities and risks should integrate material economic,
environmental and social issues, including climate change and data stewardship.
Governance body composition
Composition of the highest governance body and its committees by:competencies relating to economic, environmental and social topics; executive Governance; Supervisory
or non-executive; independence; tenure on the governance body; number of Board; Corporate governanceeach individual’s other significant positions and commitments, and the nature statements: G2of the commitments; gender; membership of under-represented social groups;
stakeholder representation.

Quality of
governingbody

Progress against strategic milestones
Disclosure of the material strategic economic, environmental and social
milestones expected to be achieved in the following year, such milestones
Performance; Sustainability
achieved from the previous year, and how those milestones are expected to or
have contributed to long-term value.
Remuneration
1. How performance criteria in the remuneration policies relate to thehighest governance body’s and senior executives’ objectives for economic,
environmental and social topics, as connected to the company’s stated purpose,
strategy and long-term value.
Remuneration policy;
2. Remuneration policies for the highest governance body and senior executives
Proposed remuneration policy;
for the following types of remuneration: Fixed pay and variable pay, including
Remuneration report
performance-based pay, equity-based pay, bonuses and deferred or vested
shares Sign-on bonuses or recruitment incentive payments Termination
payments Clawbacks Retirement benefits, including the difference between
benefit schemes and contribution rates for the highest governance body, senior
executives and all other employees

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DISCLOSURE

Anti-corruption
Total percentage of governance body members, employees and business
partners who have received training on the organization’s anti-corruption
Limited disclosure: Employees
policies and procedures, broken down by region.
Total number and nature of incidents of corruption confirmed during the current All employees receive informal
year, but related to previous years; andtraining on the
Code of
Total number and nature of incidents of corruption confirmed during the current
Conductwhen joining the company
year, related to this year.
Discussion of initiatives and stakeholder engagement to improve the broader
operating environment and culture, in order to combat corruption.
Protected ethics advice and reporting mechanisms
A description of internal and external mechanisms for:Seeking advice about ethical and lawful behaviour and organizational
integrity; andReporting concerns about unethical or unlawful behaviour and lack oforganizational integrity.

Code of conduct

Alignment of strategy and policies to lobbying
The significant issues that are the focus of the company’s participation in public
policy development and lobbying; the company’s strategy relevant to these
Limited disclosure: Society
areas of focus; and any differences between its lobbying positions and its
purpose, stated policies, goals or other public positions.
PLANET
GHG emissions: For all relevant greenhouse gases (e.g., carbon dioxide,
methane, nitrous oxide, F-gases etc.), report in metric tonnes of carbon dioxide Environment; Environmental
equivalent (tCO2e) emissions. Estimate and report material upstream andStatements: E7
downstream (GHG Protocol scope 3) emissions where appropriate.

Climatechange

TCFD implementation: Fully implement the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD). If necessary, disclose a timelineof at most three years for full implementation. Disclose whether you have set,or have committed to set, GHG emissions targets that are in line with the goals TCFD Indexof the Paris Agreement – to limit global warming to well below 2°C above
preindustrial levels and pursue efforts to limit warming to 1.5°C – and to achieve
net-zero emissions before 2050.
Paris-aligned GHG emissions targets:Define and report progress against time-bound science-based GHG emissions
targets that are in line with the goals of the Paris Agreement – to limit global
warming to well below 2°C above pre-industrial levels and pursue efforts to limit
warming to 1.5°C. This should include defining a date before 2050 by which you
will achieve net-zero greenhouse gas emissions, and interim reduction targets Sustainability
based on the methodologies provided by the Science Based Targets initiative,
if applicable.
If an alternative approach is taken, disclose the methodology used to calculate
the targets and the basis on which they deliver on the goals of theParis Agreement.

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Freshwater
availability

Water consumption and withdrawal in water-stressed areas:
Report for operations where material: megalitres of water withdrawn,
megalitres of water consumed and the percentage of each in regions with
Limited disclosure; Environment;high or extremely high baseline water stress, according to WRI Aqueduct water
Environmental statements: E4
risk atlas tool.
Estimate and report the same information for the full value chain (upstream anddownstream) where appropriate.

Training provided (#, $):Average hours of training per person that the organization’s employees haveundertaken during the reporting period, by gender and employee category (total
Skills for the
Employees; Social statements S3;
number of hours of training provided to employees divided by the number
futureSocial key figuresof employees).
Average training and development expenditure per full time employee (total
cost of training provided to employees divided by the number of employees).

Water
pollution

Nutrients:
Environment; Environmental
Estimate and report wherever material along the value chain: metric tonnes ofstatements: E5
nitrogen, phosphorous and potassium in fertilizer consumed.

PROSPERITY

Air pollution:
Report wherever material along the value chain: nitrogen oxides (NOx), sulphur
Environment; Environmental
Air pollution oxides (SOx), particulate matter and other significant air emissions. Whereverstatements: E5
possible estimate the proportion of specified emissions that occur in or adjacent
to urban/densely populated areas.
Resource
availability

Resource circularity: Report the most appropriate resource circularity metric(s) Environment; Environmental
for the whole company and/or at a product, material or site level as applicable. statements: E2

PEOPLE
Diversity and inclusion (%):
Percentage of employees per employee category, by age group, gender andother indicators of diversity (e.g. ethnicity).

Dignity &Equality

Employees; Social key figures

Risk for incidents of child, forced or compulsory labour:
An explanation of the operations and suppliers considered to have significant risk Society; Risks and opportunities
for incidents of child labour, forced or compulsory labour. Such risks could emerge overview - Sustainable & ethicalsupply;Umicore Global
in relation to:a) type of operation (such as manufacturing plant) and type of supplier; and Sustainable Sourcing Policyb) countries or geographic areas with operations and suppliers considered at risk.

Freedom of association and collective bargaining at risk (%): Percentageof active workforce covered under collective bargaining agreements. An
Limited disclosure: Employees;
explanation of the assessment performed on suppliers for which the rightSocial key figures
to freedom of association and collective bargaining is at risk, including measurestaken by the organization to address these risks.
Health and safety (%):
1. The number and rate of fatalities as a result of work-related injury; high­consequence work-related injuries (excluding fatalities); recordable work-related
Employees; Social statements S4, S5;
injuries; main types of work-related injury; and the number of hours worked.
Social key figures
2. An explanation of how the organization facilitates workers’ access to non­occupational
medicalandhealthcare
services,
and
the
scope
of
accessprovided
Health andwellbeing for employees and workers
Employee well-being (#, %): The number of fatalities as a result of work-related
ill-health, recordable work-related ill-health injuries, and the main types of work­
related ill-health for all employees and workers. a) Percentage of employees Employees; Key figures
participating in “best practice” health and well-being programmes, and b)
Absentee rate (AR) of all employees

Absolute number and rate of employment:
Total number and rate of new employee hires during the reporting period, by Limited disclosure: Employees;
age group, gender, other indicators of diversity and region.
Social statements: S2, S3; Social
Total number and rate of employee turnover during the reporting period, by age key figuresgroup, gender, other indicators of diversity and region.
Economic contribution:
Direct economic value generated and distributed (EVG&D), on an accruals basis,covering the basic components for the organization’s global operations, ideally
Employment split out by:
Umicore at a glance; Financial;
and wealth Revenues, Operating costs, Employee wages and benefits, Payments to
Financial statements: F8, F9, F39;
generation providers of capital, Payments to government, Community investment
Society key figures; Key figures
Financial assistance received from the government: total monetary value offinancial assistance received by the organization from any government during
the reporting period.
Financial investment contribution:
Total capital expenditures (CapEx) minus depreciation, supported by narrative to Umicore at a glance;
describe the company’s investment strategy.
Investing in Umicore; Operations;Share buybacks plus dividend payments, supported by narrative to describe the Financial statements
company’s strategy for returns of capital to shareholders.
Innovationof better
Total R&D expenses ($)
products and Total costs related to research and development.
services

Innovation

Social value generated (%)
Percentage of revenue from products and services designed to deliver specific Sustainable Products & Services
Community social benefits or to address specific sustainability challenges.
and social
Total tax paid:
vitality
The total global tax borne by the company, including corporate income taxes,
Society; Society key figuresproperty taxes, non-creditable VAT and other sales taxes, employer-paid payroll
taxes, and other taxes that constitute costs to the company, by category of taxes.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

TCFD index
TOPIC

Governance

DISCLOSURE
Describe the board’s oversight of climate-related risks
and opportunities.

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General management

Describe management’s role in assessing and managing climate­ Operational management;
related risks and opportunities.
CEO&Chairman Review
Describe the climate-related risks and opportunities theManaging risk effectively (Market, Climate
organization has identified over the short, medium, and long term. and environment)

Strategy

Describe the impact of climate-related risks and opportunities on Managing risk effectively (Climate
the organization’s businesses, strategy, and financial planning.
and environment)
Describe the resilience of the organization’s strategy, taking into
Managing risk effectively (Climate
consideration different climate-related scenarios, including a 2°C
and environment)
or lower scenario.
Describe the organization’s processes for identifying and assessing Managing risk effectively (Regulatory andclimate-related risks.
legal context, Climate and environment)

Risk
Management

Metrics andTargets

Describe the organization’s processes for managing climate­
related risks.

Managing risk effectively (Regulatory andlegal context, Climate and environment)

Describe how processes for identifying, assessing, and managing
Managing risk effectively (Climate
climate-related risks are integrated into the organization’s overall
and environment)risk management.
Disclose the metrics used by the organization to assess climate­
Environment;Sustainability
related risks and opportunities in line with its strategy and risk
(remuneration policy)
management process.
Disclose scope 1, scope 2, and, if appropriate, scope 3 greenhouse
Environmentgas (GHG) emissions, and the related risks.
Describe the targets used by the organization to manage climate­
Sustainability
related risks and opportunities and performance against targets.

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222

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Independent auditor’s report to the general meeting of Umicore NV for
the year ended 31 December 2021
As required by law and the Company’s articles of association, we report to you as statutory auditor of
Umicore NV (the “Company”) and its subsidiaries (together the “Group”). This report includes our opinion
on the consolidated balance sheet as at 31 December 2021, the consolidated income statement, theconsolidated statement of comprehensive income, consolidated statement of changes in equity andthe consolidated statement of cash flow for the year ended 31 December 2021 and the disclosures (allelements together the “Consolidated Financial Statements”) as well as our report on other legal andregulatory requirements. These two reports are considered one report and are inseparable.
We have been appointed as statutory auditor by the shareholders’ meeting of 29 April 2021, in accordancewith the proposition by the Supervisory Board following recommendation of the Audit Committee andfollowing recommendation of the workers’ council. Our mandate expires at the shareholders’ meetingthat will deliberate on the Consolidated Financial Statements for the year ending 31 December 2023. We
performed the audit of the Consolidated Financial Statements of the Group for one year.

Report on the audit of the Consolidated Financial Statements
Unqualified opinion
We have audited the Consolidated Financial Statements of Umicore NV, that comprise of the consolidatedbalance sheet on 31 December 2021, the consolidated income statement, the consolidated statement ofcomprehensive income, consolidated statement of changes in equity and the consolidated statementof cash flow of the year and the disclosures, which show a consolidated balance sheet total of€ 9.045.241 thousands and of which the consolidated income statement shows a profit for the year of€ 626.949 thousands.
In our opinion, the Consolidated Financial Statements give a true and fair view of the consolidated net
equity and financial position as at 31 December 2021, and of its consolidated results for the year thenended, prepared in accordance with the International Financial Reporting Standards as adopted by theEuropean Union (“IFRS”) and with applicable legal and regulatory requirements in Belgium.

223

We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our
responsibilities under those standards are further described in the “Our responsibilities for the audit of theConsolidated Financial Statements” section of our report.
We have complied with all ethical requirements that are relevant to our audit of the Consolidated Financial
Statements in Belgium, including those with respect to independence.
We have obtained from the Supervisory Board and the officials of the Company the explanations andinformation necessary for the performance of our audit and we believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Other matter
The Company's Consolidated Financial Statements for the year ended 31 December 2020 were auditedby another statutory auditor who expressed an unqualified opinion on these Consolidated Financial
Statements on 22 March 2021.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the Consolidated Financial Statements of the current reporting period.
These matters were addressed in the context of our audit of the Consolidated Financial Statements as awhole and in forming our opinion thereon, and consequently we do not provide a separate opinion onthese matters.
Accounting treatment of hedge transactions and derivatives
Description of the key audit matter
Umicore uses a number of different derivative financial instruments to hedge against currency, energy
and commodity price risks associated with its ordinary business activities. Management’s hedging policy
is documented in corresponding internal guidelines and serves as the basis for these transactions. These
price risks arise primarily from revenue, sales and procurement transactions, in particular commodities.

Basis for the unqualified opinion
The Group applies cash flow hedging, fair value hedging, and economical hedging (i.e. derivatives thatare not in a formal hedge relationship, but are not speculative). Each of these 3 types is outlined in moredetail in the following paragraphs.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

The cash flow hedges, also labelled as “strategic hedges” in the Group’s annual report, meet the criteria
for hedge accounting under IFRS 9. Consequently, the effective portion of the changes in fair value of theunderlying derivative financial instruments are recognized directly in equity until the underlying hedged
cash flows materialize. As of the balance sheet date, EUR 54.0 million were recognized in 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 Group’s annual report, meetthe criteria for fair value hedge accounting under IFRS 9 as disclosed in the accounting policies undernote F 2.21.1. These consist mainly of the currency hedges and the commodity hedges for base metals(lead, copper and nickel). The hedged items and the hedging instruments are both recognized at fair value
through the income statement. As of the balance sheet date, EUR 22.0 million (negative) were recognized
as fair value of the hedging instruments as disclosed in note F 32 and F 33.2.
There is a part of the transactional hedging for commodities for which under IFRS 9 no fair value hedge
accounting can be applied because the criteria are not met. These are labelled as “economical hedges” in
the Group’s annual report. In addition, for some metals, in the absence of market-based derivatives, thehedging consists of physical back-to-back hedging set-ups without any derivative financial instruments
involved. As of the balance sheet date, EUR 3.5 million were recognized as fair value of the derivatives as
disclosed in note F 32 and F 33.2. Although the hedging criteria under IFRS 9 are not met, management
does not consider these as speculative instruments.
We believe that these matters are significant in our audit due to their high complexity, the number oftransactions as well as the extensive accounting, documentation and reporting requirements under IFRS 9.
Summary of the procedures performed● Assessment of the design and operating effectiveness of the Group’s key internal controls withregard to derivative financial instruments, including its activities to monitor compliance with thehedging policies.
● We obtained bank and broker confirmations in order to support the existence, completenessand fair values of the recorded hedging transactions. We have recalculated the impact on theincome statement and have verified the contractual and financial terms for a representative sample
of derivatives.
● We used market data to confirm the method applied to measure the fair value of the financial
instruments and recalculated the fair value for a sample of derivatives with the use of ourinternal experts.
● Inspection of the hedge accounting documentation and prospective effectiveness testing to ensurecompliance with IFRS 9. In particular, for the fair value hedges we assessed the net position approachfor the commodity hedges. For the cash flow hedges we verified the probability of the expected future
cash flows. For the part on which no fair value hedge accounting can be applied (in the absence of224

meeting the IFRS 9 criteria or in the absence of market-based derivatives), we verified whether theaccounting treatment was in accordance with IAS 2 “Inventories” and IAS 37 “Provisions, Contingent
Liabilities and Contingent Assets”.
● Assessment of the accounting treatment, including the effects on equity and profit or loss,of the various hedging transactions and reconciliation with the statement of financial positionand disclosures.
● We evaluated whether the hedged items and hedging instruments were appropriately disclosed innotes F 33.1 and F33.2 of the financial statements.
Uncertain tax positions
Description of the key audit matter
Umicore conducts its business globally and, as a result, is subject to audit by local taxing authorities for
its various global subsidiaries and the resolution of such audits may span multiple years. Uncertainty ina tax position may arise because tax laws are complex and subject to varied interpretation. Accordingly,
the ultimate outcome with respect to tax positions may differ from the amounts recognized. Accounting
for uncertain tax positions requires significant judgement by management as to their recognitionand valuation as disclosed in the accounting policies under note F 2.19. As explained in note F 4.6,
management performed a detailed assessment of all tax uncertainties which resulted in a provision forthese uncertainties amounting to EUR 101.1 million as of the balance sheet date.
We believe that the accounting treatment of uncertain tax positions is significant in our audit due tothe assessment process being complex and requiring significant judgement by management, and theamounts involved being material to the consolidated financial statements of the Group.
Summary of the procedures performed● We evaluated the Group’s accounting policy related to uncertain tax positions and assessed thecompliance of this policy with IFRIC 23 “Uncertainty over Income Tax Treatments”.
● Assessment of the Group’s internal control environment with regard to uncertain tax positions,
including its process to identify the tax exposures of all the legal entities within the Group. We
tested the design of management’s controls in respect of the identification of various uncertain tax
positions, its assessment and interpretation of tax laws, its evaluation of which tax positions may not
be sustained upon audit and of their expected financial outcome.
● We analyzed and challenged management’s methods and key assumptions, in particular on cases
where there had been significant developments with local tax authorities.
● We obtained explanations from management and corroborated those explanations with supporting
evidence, including but not limited to internal tax memorandums, communication with tax authorities
and conclusions of the Group’s outside tax advisors. We focused on the judgements made byUmicore Strategy Performance Leadership Statements About Glossary Backcovermanagement in assessing the quantification and likelihood of significant exposures and the levelof liability required for specific transactions. For significant new uncertain tax positions or potential
exposures identified, or significant changes in existing positions or exposures, we analyzed theassessments prepared by the Group together with our internal tax specialists.
● We evaluated whether the liabilities and exposures for uncertain tax positions were appropriately
disclosed in the financial statements.
Responsibilities of the Supervisory Board for the preparation of the Consolidated
Financial Statements
The Supervisory Board is responsible for the preparation of the Consolidated Financial Statements thatgive a true and fair view in accordance with IFRS and with applicable legal and regulatory requirements
in Belgium and for such internal controls relevant to the preparation of the Consolidated Financial
Statements that are free from material misstatement, whether due to fraud or error.
As part of the preparation of Consolidated Financial Statements, the Supervisory Board is responsible forassessing the Company’s ability to continue as a going concern, and provide, if applicable, information
on matters impacting going concern, The Supervisory Board should prepare the financial statements
using the going concern basis of accounting, unless the Supervisory Board either intends to liquidate theCompany or to cease business operations, or has no realistic alternative but to do so.
Our responsibilities for the audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance whether the Consolidated Financial Statements arefree from material misstatement, whether due to fraud or error, and to express an opinion on these
Consolidated Financial Statements based on our audit. Reasonable assurance is a high level of assurance,
but not a guarantee that an audit conducted in accordance with the ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Consolidated Financial Statements.
In performing our audit, we comply with the legal, regulatory and normative framework that applies
to the audit of the Consolidated Financial Statements in Belgium. However, a statutory audit does notprovide assurance about the future viability of the Company and the Group, nor about the efficiency
or effectiveness with which the Supervisory Board has taken or will undertake the Company's and theGroup’s business operations. Our responsibilities with regards to the going concern assumption used by
the Supervisory Board are described below.
As part of an audit in accordance with ISAs, we exercise professional judgment and we maintainprofessional skepticism throughout the audit. We also perform the following tasks:

Umicore Integrated Annual Report 2021

225

● identification and assessment of the risks of material misstatement of the Consolidated Financial
Statements, whether due to fraud or error, the planning and execution of audit procedures to respondto these risks and obtain audit evidence which is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting material misstatements resulting from fraud is higher thanwhen such misstatements result from errors, since fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control;● obtaining insight in the system of internal controls that are relevant for the audit and with the objective
to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control;● evaluating the selected and applied accounting policies, and evaluating the reasonability of theaccounting estimates and related disclosures made by the Supervisory Board as well as the underlying
information given by the Supervisory Board;● conclude on the appropriateness of the Supervisory Board use of the going-concern basis ofaccounting, and based on the audit evidence obtained, whether or not a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s or Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the Consolidated Financial Statements or,if such disclosures are inadequate, to modify our opinion. Our conclusions are based on audit evidence
obtained up to the date of the auditor’s report. However, future events or conditions may cause theCompany to cease to continue as a going-concern;● evaluating the overall presentation, structure and content of the Consolidated Financial Statements,and evaluating whether the Consolidated Financial Statements reflect a true and fair view of theunderlying transactions and events.
We communicate with the Audit Committee within the Supervisory Board regarding, among othermatters, the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
Because we are ultimately responsible for the opinion, we are also responsible for directing, supervisingand performing the audits of the subsidiaries. In this respect we have determined the nature and extent
of the audit procedures to be carried out for group entities.
We provide the Audit Committee within the Supervisory Board 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, and whereapplicable, related safeguards.
From the matters communicated with the Audit Committee within the Supervisory Board, we determine
those matters that were of most significance in the audit of the Consolidated Financial Statements of theUmicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcovercurrent period and are therefore the key audit matters. We describe these matters in our report, unlessthe law or regulations prohibit this.

Report on other legal and regulatory requirements
Responsibilities of the Supervisory Board
The Supervisory Board is responsible for the preparation and the content of the Supervisory Board reporton the Consolidated Financial Statements, and other information included in the annual report.
Responsibilities of the auditor
In the context of our mandate and in accordance with the additional standard to the ISAs applicable inBelgium, it is our responsibility to verify, in all material respects, the Supervisory Board report on theConsolidated Financial Statements, and other information included in the annual report, as well as toreport on these matters.
Aspects relating to Supervisory Board report and other information included in the annual report
In our opinion, after carrying out specific procedures on the Supervisory Board report, the Supervisory
Board report is consistent with the Consolidated Financial Statements and has been prepared inaccordance with article 3:32 of the Code of companies and associations.
In the context of our audit of the Consolidated Financial Statements, we are also responsible to consider
whether, based on the information that we became aware of during the performance of our audit, theSupervisory Board report and other information included in the annual report, being:● Key performance figures related to ‘Economic performance’ (page 78)● Parent company separate summarized financial statements (page 178 and following)
contain any material inconsistencies or contain information that is inaccurate or otherwise misleading. In
light of the work performed, there are no material inconsistencies to be reported.
The non–financial information required by article 3:32, § 2, of the Code of companies and associations
has been included in the annual report. The Company has prepared this non-financial information
based on GRI. As requested by the Company, we have issued a separate limited assurance report on aselection of value chain, environmental and social KPI’s in accordance with the International Standard
on Assurance Engagements ISAE 3000. In accordance with article 3:80 § 1, 5° of the Code of companies
and associations, we do not express any opinion on the question whether this non-financial information
has been established in accordance with the GRI framework. For information not included in our specific226

limited assurance report on non-financial information, we do not express any assurance on individual
elements that have been disclosed in this non-financial information.
Independence matters
Our audit firm and our network have not performed any services that are not compatible with the audit of
the Consolidated Financial Statements and have remained independent of the Company during the courseof our mandate.
The fees related to additional services which are compatible with the audit of the Consolidated Financial
Statements as referred to in article 3:65 of the Code of companies and associations were duly itemized
and valued in the notes to the Consolidated Financial Statements.
European single electronic format (“ESEF”)
In accordance with the standard on the audit of the conformity of the financial statements with theEuropean single electronic format (hereinafter "ESEF"), we have carried out the audit of the complianceof the ESEF format with the regulatory technical standards set by the European Delegated Regulation No
2019/815 of 17 December 2018 (hereinafter: "Delegated Regulation").
The Supervisory Board is responsible for the preparation, in accordance with the ESEF requirements, of theconsolidated financial statements in the form of an electronic file in ESEF format (hereinafter 'the digitalconsolidated financial statements') included in the annual financial report available on the portal of the
FSMA (
https://www.fsma.be/en/data-portal).
It is our responsibility to obtain sufficient and appropriate supporting evidence to conclude that the format
and markup language of the digital consolidated financial statements comply in all material respects with
the ESEF requirements under the Delegated Regulation.
Based on the work performed by us, we conclude that the format and tagging of information in the digitalconsolidated financial statements of the Company per 31 December 2021 included in the annual financial
report available on the portal of the FSMA (https://www.fsma.be/en/data-portal) are, in all material
respects, in accordance with the ESEF requirements under the Delegated Regulation.

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Other communications● This report is consistent with our supplementary declaration to the Audit Committee as specified inarticle 11 of the regulation (EU) nr. 537/2014.
Diegem, 23 March 2022
EY Bedrijfsrevisoren BV
Statutory auditor
Represented by

Marnix Van Dooren *Partner*Acting on behalf of a BV/SRL

Eef Naessens *Partner*Acting on behalf of a BV/SRL

Umicore Integrated Annual Report 2021

227

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover

Report of the Independent Auditor

228

of the procedures selected depend on our judgment, including an assessment of the risk of material
misstatement, whether due to fraud or error.

TO THE GENERAL SHAREHOLDERS’ MEETING OF THE COMPANY UMICORE
Scope

We believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited
assurance conclusions.

We have been engaged by Umicore SA to perform a limited assurance engagement, as defined by theInternational Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial
Information ("ISAE 3000") here after referred to as the engagement, to report on Umicore Groups’ (the“Company”) sustainability indicators of the accompanying annual report 2021 (the “Report”) as listed inAppendix (the “Subject Matter”) for the period from 1 January 2021 to 31 December 2021.

Our Independence and Quality Control

Other than as described in the preceding paragraph, which sets out the scope of our engagement, we
did not perform assurance procedures on the remaining sustainability related information included in theReport, and accordingly, we do not express a conclusion on this information.

EY also applies the International Standard on Quality Control 1, Quality Control for Firms that Perform
Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements,
and accordingly maintains a comprehensive system of quality control including documented policies andprocedures regarding compliance with ethical requirements, professional standards and applicable legal
and regulatory requirements.

Criteria applied by Umicore SA
In preparing the sustainability indicators as listed in Annex 1 of the Report, Umicore SA applied thereporting standards of the Global Reporting Initiative (“GRI”), the Sustainability Accounting Standards
Board (“SASB”) and a set of own reporting criteria as disclosed in the Report (Criteria).
Umicore SA’s responsibilities
Umicore SA’s management is responsible for selecting the Criteria, and for presenting the Subject Matterin accordance with the Criteria, in all material respects. This responsibility includes establishing andmaintaining internal controls, maintaining adequate records and making estimates that are relevant to
the preparation of the Subject Matter, such that it is free from material misstatement, whether due tofraud or error.
Our responsibilities
Our responsibility is to express a conclusion on the presentation of the Subject Matter based on theevidence we have obtained.

We have maintained our independence and confirm that we have met the requirements of the Code of
Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, andhave the required competencies and experience to conduct this assurance engagement.

Description of procedures performed
Procedures performed in a limited assurance engagement vary in nature and timing from, and are less inextent than for a reasonable assurance engagement. Consequently the level of assurance obtained in alimited assurance engagement is substantially lower than the assurance that would have been obtained
had a reasonable assurance engagement been performed.
A limited assurance engagement consists of making enquiries, primarily of persons responsible
for preparing the Subject Matter and related information, and applying analytical and otherappropriate procedures.
Although we considered the effectiveness of management’s internal controls when determining thenature and extent of our procedures, our assurance engagement was not designed to provide assurance
on internal controls. Our procedures did not include testing controls or performing procedures relating tochecking aggregation or calculation of data within IT systems.
Our procedures included amongst other:

We conducted our engagement in accordance with ISAE 3000 and the terms of reference for thisengagement as agreed with the Company on 24 August 2021. Those standards require that we plan andperform our engagement to obtain limited assurance about whether, in all material respects, the Subject
Matter is presented in accordance with the Criteria, and to issue a report. The nature, timing, and extent● Obtaining an understanding of the reporting processes for the Subject Matter;● Evaluating the consistent application of the Criteria;● Interviewing relevant staff at local level responsible for data collection, reporting and calculation of the
Subject Matter;Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover● Interviewing management and relevant staff at corporate level responsible for consolidating andcarrying out internal control procedures on the Subject Matter;● Interviewing relevant staff responsible for reporting the Subject Matter in the Report;● Determining the nature and extent of the review procedures for each of the locations contributing
to the Subject Matter. Based on the site scoping, the sites Subic (the Philippines), Hoboken and Olen
(Belgium) were visited to validate the data and evaluate the design and implementation of datacollection and calculation processes as well as validation procedures related to the Subject Matter.
For the remaining locations contributing to the sustainability indicators listed in Appendix, procedures
were carried out centrally to review the reasonableness of the data collection, data calculation, anddata validation procedures;● Obtaining information that the Subject Matter reconciles with underlying records of the Company;● Evaluating, on a limited test basis, relevant internal and external documentation;● Performing an analytical review of the data and trends in the Subject Matter for consolidation at
corporate level and the data reported by the sites;● Evaluating the overall presentation of the Subject Matter in the Report.

Appendix
Environmental
●
●
●
●
●
●
●
●
●
●
●
●

We also performed such other procedures as we considered necessary in the circumstances.
Conclusion
Based on our procedures and the evidence obtained, we are not aware of any material modifications thatshould be made to the Subject Matter for the period from 1 January 2021 to 31 December 2021, in orderfor it to be in accordance with (or based on) the Criteria.
Diegem, 23 March 2022
EY Bedrijfsrevisoren BV
Statutory auditor
Represented by

●
●
●
●
●
●
●
●
●
●
●

Metal emissions to water (load)
Metal emission to water (impact units)
Metal emissions to air (load)
Metal emissions to air (impact units)
SOx emissions
NOx emissions
CO2e-emissions scope 1 (per year)
CO2e-emissions scope 2 - Market based (per year)
CO2e-emissions scope 2 - Location based (per year)
CO2e-emissions (scope 1+2) - Market based (per business group)
CO2e-emissions (scope 1+2) - Location based (per business group)
Energy consumption (absolute) (per year and per business group)○ Energy consumption (per business group)○ Indirect energy consumption○ Direct energy consumption
Number of energy efficiency projects
Renewable electricity
Total waste produced
Hazardous wasteof which recycled
Non-hazardous wasteof which recycled
Compliance excess rate
Environmental complaints
Sites ISO 14001 certified
Diffuse metal emissions

SocialMarnix Van Dooren *Partner*Acting on behalf of a BV/SRL

Eef Naessens *Partner*Acting on behalf of a BV/SRL● Workforce (fully consolidated companies) (per year, per region, per business group)○ Workforce from associated companies (per year, per region, per business group)○ Total workforce (per region, per business group)○ Employees men (per year, per region, per business group)○ Employees women (per year, per region, per business group)○ Full-time equivalent (per year, per region, per business group)○ Employees (< 30 yrs, 30-50 yrs, >50 yrs)

229

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover● Temporary contracts (per year, per region, per business group)● Diversity○ Women amongst all employees○ Women amongst all managers○ Women amongst senior management○ Non-European representation in senior management functions○ % women of total new managerial hires● Average training hours per employee (per year, per region, per business group)○ Average number of training hours per employee - Men○ Average number of training hours per employee - Women○ Average number of training hours per employee - Managers○ Average number of training hours per employee - Other categories● Employees having a yearly appraisal (per year, per region, per business group)● Voluntary leavers ratio (per year, per region, per business group)○ Voluntary leavers men & women● Pay ratio – Highest vs lowest pay level● Retention rate
● Number of nationalities● Number of production sites, R&D/Technical centers, other sites● Number of employees per country● Employees represented by union or Collective Labour Agreement (CLA) (per year, per region, perbusiness group)● Violation against the Code of conduct● Exposure ratio 'all biomarkers aggregated'○ Exposure ratio lead (blood)○ Exposure ratio arsenic (urine)○ Exposure ratio cobalt (urine)○ Exposure ratio cadmium (urine)○ Exposure ratio nickel (urine)○ Exposure ratio indium (blood)○ People with platinum salts sensitization● Number of occupational linked diseases○ People with noise-induced hearing loss
○ People with contact dermatitis○ People with occupational asthma other than Ptsalts○ People with muskuloskeletal ailments● Fatal accidents (per year and per business group)○ Fatal accidents sub-contractors● Lost Time Accidents (LTA) (per year, per region and per business group)

●
●
●
●
●
●
●
●

Lost Time Accidents (LTA) for sub-contractors
LTA frequency rate
LTA severity rate
Calendar days lost (per year and per business group)
Recordable injuries
Recordable injuries frequency rate
Ratio N of sites with no LTA/total N of sites reporting
Sites ISO 45001 certified

Value Chain
●
●
●
●
●
●

Site accreditations responsible mineral sourcing
Indirect procurement - scores of Ecovadis supplier assessments
Ecovadis rating
Resource efficiency (primary, secondary pre-consumer and secondary post-consumer)
Revenues from clean mobility and recycling
Total donations (group, regional, BU)○ Cash donations○ Donations in kind
○ Staff freed time

230

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary Backcover231

Key figures(in million € unless stated otherwise)

2017

2018

2019

2020

2021
3,963

Economic performance
Revenues (excluding metal)

2,915.6

3,271

3,361

3,239

Adjusted EBIT

410.3

514

509

536

971

Return on Capital Employed (ROCE) (in %)

15.1

15.4

12.6

12.1

22.2

R&D expenditure

175.2

196

211

223

245

Capital expenditure

365.3

478

553

403

389

Adjusted EPS (in €/share)

1.22

1.36

1.30

1.34

2.77

Gross dividend (in €/share)

0.70

0.75

0.375

0.75

0.80

Social and environmental performance
Revenues from clean mobility and recycling (in%)

67

72

75

79

79

1,299

1,432

1,614

1517.211623.99CO2e emissions (scope1)

364,139

417,140

389,101

330,619372,699CO2e emissions (scope2) - Market based (in tonne)

269,565

350,562

402,795

401,926

473,738CO2e emissions (scope2) - Location based (in tonne)

299,168

368,649

426,074

417,346

418,989

Energy consumption (in terajoules)

6,532

7,458

7,476

7,591

8,308

Workforce (fully consolidated companies)

9,769

10,420

11,152

10,85911,050Total donations, including staff freed time (in thousands of euro)

Lost Time Accidents (LTA)

51

61

90

49

73

LTA frequency rate

3.01

3.36

4.60

2.50

3.7

LTA severity rate

0.09

0.10

0.20

0.47

0.12

Exposure ratio 'all biomarkers aggregated' (in %)

2.7

2.8

1.8

2.0

1.5

Average number of training hours per employee

45.33

43.10

48.73

36.33

41.59

Voluntary leavers ratio

5.03

7.18

5.99

4.20

5.82

Umicore Performance
Strategy Performance
Statements
Backcover
Strategy
LeadershipLeadershipStatements
About thisAboutreport Glossary
Key figures

IF MY UNIQUENESSAND IDEAS CANSHAPE OUR FUTURE

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Umicore Integrated Annual Report 2021

233

Glossary
Glossary

Adjusted EPS (Earnings per share)

The below definitions cover Umicore’s Alternative Performance Measures (APMs)

Adjusted net earnings, Group share / average number of (issued shares – treasury shares).

Accidents

Adjusted EPS, basic

Accident frequency rate: Number of lost time accidents per million hours worked. Accidents on the roadto and from work are excluded.
Accident severity rate: Number of calendar days lost per thousand hours work. Accidents on the road toand from work are excluded.
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
Total Recordable Injury Rate (TRIR): Total number of fatal accidents, lost time accidents and recordable
injuries without lost time, per million hours worked, for both Umicore employees and contractors

Adjusted net earnings, Group share / average number of outstanding shares.

Adjusted EBIT

Adjusted EPS, diluted
Adjusted net earnings, Group share / (average number of outstanding shares + number of potential newshares to be issued under the existing stock option plans x dilution impact of the stock option plans).

Assessment of product (and services) sustainability (APS)This Umicore-specific methodology is used for assessing the sustainability of Umicore’s products andservices and uses a tool consisting of 58 preformatted questions and answers with scoring and weighting
factors, organized around eight themes.

EBIT - EBIT adjustments including total other income, income taxes, depreciation and amortization, andexcluding non-recurring, irregular and one-time items.

Associate

Adjusted EBIT margin

An entity in which Umicore has a signiﬁcant inﬂuence over the ﬁnancial and operating policies but nocontrol. Typically, this is evidenced by an ownership of between 20% and 50%. Associates are accounted
for using the equity method.

Adjusted EBIT of fully consolidated companies / revenues excluding metals.

Adjusted EBITDA
Adjusted EBIT + adjusted depreciation and amortization of fully consolidated companies.

Adjusted EBITDA margin
Adjusted EBITDA of fully consolidated companies / revenues excluding metals.

Automotive platform
A shared set of common design, engineering and production efforts as well as major components over anumber of outwardly distinct models of vehicles

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Average capital employed

Charitable donation

For half years: average of capital employed at start and end of the period; For full year: average of the halfyear averages.

A donation to a not-for-proﬁt organization that is not for the commercial beneﬁt of Umicore. Donations canbe in cash or in kind. Political donations are not permitted.

Average number of shares outstanding

China 6

Basic: average number of outstanding shares.
Diluted: average number of outstanding shares + number of potential new shares to be issued under the
existing stock option plans x dilution impact of the stock option plans.

Chinese emissions standard for light duty vehicles, similar to Euro 6.

Biomarker of exposure
Substance or its metabolite that is measured in biological fluids (e.g. blood) to assess internal
body exposure.

Capital employed
Fixed Assets + Working Capital (Inventories + adjusted Trade & Other Receivables – adjusted Trade &Other Payables) – Translation Reserves – Current & Non-Current provisions other than provisions for
Employee Benefits.

Capital expenditure

Closed loop
For Umicore a “closed loop” involves taking back secondary materials from customers (e.g. production
residues) or End-of-Life materials (e.g. used mobile phones, automotive catalysts). The recovered metals
are then fed back into the economic cycle.

CO2 equivalent (CO2e)
The universal unit of measurement to indicate the global warming potential (GWP) of each of the six
greenhouse gases, expressed in terms of the GWP of one unit of carbon dioxide. It is used to evaluate
releasing (or avoiding releasing) different greenhouse gases against a common basis.

Conflict minerals

Capitalized investments in tangible and intangible assets, excluding capitalized R&D costs.

Minerals mined in conditions of armed conflict or Human Rights abuses, particularly gold, tin, tungsten
and tantalum.

Catalysis/catalyst

Consolidated sites

Catalysis is a chemical process whereby one of the elements used in the reaction process, the catalyst,
makes this chemical reaction possible, or speeds up this process, without being consumed in the reaction
process, and therefore can be re-used.

Sites of fully consolidated companies.

CathodeThe cathode is the positive side in a (rechargeable) battery. In the charging phase ions are released fromthe cathode and migrate to the anode (negative side), thereby storing electricity. In the discharging phase,the ions move back to the cathode, thereby releasing electricity.

COSO Framework
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a voluntary private­sector organization which has established a common internal control model against which companies andorganizations may assess their control systems.

Decibel (dB)
Unit of noise level.

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Diffuse emissions

Electroplating

See Emissions

Electroplating is a plating process in which metal ions in a solution (electrolyte) are moved by an electricﬁeld to coat another material. The process is primarily used for depositing a layer of material to bestow
a desired property on that other material.

Dodd-Frank Act
Full title: Dodd–Frank Wall Street Reform and Consumer Protection Act. The Dodd Frank Act aims topromote the ﬁnancial stability of the United States by improving accountability and transparency in theﬁnancial system. Includes a requirement that companies using gold, tin, tungsten and tantalum makeefforts to determine if those materials came from the Democratic Republic of Congo (DRC) or an adjoining
country and, if so, to carry out a “due diligence” review of their supply.

Earnings before interest and taxes (EBIT)
Operating profit (loss) of fully consolidated companies, including income from other financial investments+ Group share in net profit (loss) of companies accounted for under equity method.

EBIT adjustments
Includes adjusted items related to restructuring measures, impairment of assets, and other income or
expenses arising from events or transactions that are clearly distinct from the ordinary activities of thecompany. This includes adjustments related to the sale of business activities or environmental provisions
related to historic pollution and environmental remediation of closed sites.

Effective adjusted tax rate
Adjusted tax charge / adjusted profit (loss) before income tax of fully consolidated companies.

EHS
Environment, health & safety.

EV - Electrified vehicle
Vehicle (passenger car or other) that runs fully or partially on electricity, rather than on conventional fuel.

Employee
Aperson belonging to Umicore’s total workforce. A Umicore employee can be a full-time, part-time or
temporary employee.

Employee turnover
Expressed in terms of voluntary leavers: number of employees leaving of their own will (excluding
lay-offs, retirement, and end of fixed-term contract). This number is related to the total workforce.

End-of-life (EOL)
Materials that have ended a first life cycle and will be re-processed through recycling leading to a second,
third or more re-use. See Materials.

EnergyEnergy consumption: the sum of indirect energy consumption (energy from purchased electricity, steam,compressed air and heat) and direct energy consumption (energy from fuel, gas oil, natural gas, LPG,
coal, cokes, pet cokes etc.) at our sites. This includes also self-generated energy, for which only the
consumption of fuels is taken into consideration to avoid double-counting. Energy that is sold to third
parties is not included.
Indirect energy consumption: energy from purchased electricity, steam, compressed air and heat
Direct energy consumption: energy from fuel, gas oil, natural gas, LPG, coal, cokes, pet cokes etc.
Renewable energy: Wind energy, solar energy, energy from biomass (including bio- and other naturally
produced gas), hydropower (including marine hydro) and geothermal energy.
Energy efficiency projects: projects with the aim to improve the efficiency of processes and continuous
running of our plants with a view to reduce the energy consumption per production unit, per day etc.
by improved automated control of energy supply vs. consumption needs, replacement of inefficientequipment etc. Projects are typically well planned and evaluated before implementation, including
an estimate of expected investment, energy and CO2 savings, as well as rate of return and timeof amortisation.

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Excess reading

Hours of training per person

A result of a biological monitoring analysis that exceeds the (internal) target level.

Average number of training hours per employee – including internal and external training and training
on-the-job. Training on-the-job can include the hours a person is being trained on the shop floor, without
being fully productive. The total number of training hours is divided by the average workforce.

Exposure ratio
The exposure ratio of a specific metal is defined as the ratio between the number of employees witha biological monitoring result exceeding the Umicore target value for that specific metal and the total
number of employees identified as exposed to that metal. The Umicore target values are based uponrecent peer reviewed scientific data and regularly re-evaluated in the context of new evidence.

Full time equivalent (FTE)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.

Gearing ratio
Net financial debt / (net financial debt + equity of the Group).

Industrial by-products
See Materials, Secondary raw materials.

ISO 14001‘International Standards Organization’ specification for environmental management systems (ref. ISO).

ISO 45001
An internationally-applied British Standard for occupational health and safety management systems.

Joint venture ( JV)

Greenhouse gas (GHG)

A contractual arrangement whereby Umicore and another party undertake an economic activity that is
subject to joint control. Joint ventures are accounted for using the equity method.

GHGs are the six gases listed in the Kyoto Protocol: carbon dioxide (CO2); methane (CH4); nitrous
oxide (N2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); and sulphur hexafluoride (SF6). See‘Kyoto Protocol’.

Korean Act on the Registration and Evaluation of Chemicals (K-REACH)
Korean chemicals policy to manage the risks from chemicals and provide substance safety information.

GHG emissions intensity
total scope 1+2 CO2e market-based emissions divided by the total revenues excluding metals

Kyoto Protocol

Global warming potential (GWP)
A relative measure of how much heat a greenhouse gas traps in the atmosphere.

International treaty of the United Nations Framework Convention on Climate Change (UNFCCC) that
requires countries listed in its Annex B (developed nations) to cut emissions to 5% below 1990 levels
between 2008 and 2012. In 2012, the protocol was extended to 2020 but in 2015 it was effectively replacedby the ‘Paris Agreement’, where UNFCCC signatories agreed to limit global warming to “well below” 2°C.

Heavy duty diesel (HDD)

Light duty vehicle (LDV)

Large diesel vehicles – either on-road, such as trucks and buses, or non-road such as heavy plant andmining equipment or locomotives and agricultural equipment.

Primarily passenger cars – using diesel, gasoline or other fuel.

Umicore Integrated Annual Report 2021

Umicore Strategy Performance Leadership Statements About Glossary BackcoverLight emitting diode (LED)

Microgram per deciliter (μg/dL)

LEDs are a semiconductor-based light source offering many advantages over traditional incandescent lightsources, among which long lifetime and energy efﬁciency.

Unit used when measuring metal content in blood.

Lithium cobaltite (LCO)
Cathode material used in lithium ion rechargeable batteries, particularly suited for portableelectronic applications.

Lithium ion (LI-ION)
Lithium ion is a technology for rechargeable batteries in which lithium ions move from the positiveelectrode (the cathode) to the negative electrode (the anode) during the charging phase, thereby
storing electricity. In the discharging phase, the lithium ions move back to the cathode, thereby
releasing electricity.

Lithium nickel manganese cobalt oxide (NMC)
Relatively new type of cathode material, which is used in the emerging (H)EV market and increasingly inportable electronic applications.

Lost-time accident
See Accident

Materiality
The identification of the most relevant and significant factors influencing Umicore and Umicore’s mostsignificant economic, social and environmental impacts.

Market capitalization
Closing price x total number of outstanding shares.

Megaliter
Unit used when measuring water, equal to 1000 m3

237

Microgram per gram (μg/g)
Unit used when measuring metal content in urine.

Net cashflow before financing
Net operating cashflow – net cashflow generated by (used in) investing activities.

Net financial debt
Non-current financial debt + current financial debt - cash and cash equivalents.

Net debt / LTM adj. EBITDA
Net financial debt divided by adjusted EBITDA of the last 12 months.

Original Equipment Manufacturer (OEM)In the automotive industry, refers to car manufacturers.

Outstanding shares
Issued shares– treasury shares.

Platform (automotive)
A combination of chassis and engine type that is used on one or more models of passenger car, sometimes
between different manufacturers.

Platinum group metals (PGM)
Platinum, palladium, rhodium, ruthenium, iridium and osmium (in Umicore’s case it refers mainly to theﬁrst three).

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Power Purchase Agreement (PPA)Long-term agreement concluded for the purchase of electricity. “Green PPA” refers to a Power Purchase
Agreement for green or renewable electricity.

Precursor
Chemical substance that participates in the chemical reaction that produces another compound.

Predicted no effect concentrations (PNEC)
The concentration of a chemical which has no predicted effect on the environment.

Process emissions
Emissions generated from manufacturing processes, such as the CO2 that arises from the breakdown ofcalcium carbonate (CaCO3).

Process safety
Safety issues related to the use and storage of hazardous chemical substances that may present a hazard
to employees, neighborhood residents and the environment.

R&D expenditure
Gross research and development charges, including capitalized costs. The reported R&D figures exclude
R&D of associates.

238

materials as input. In all cases the material should not be suitable for consumption in the intermediate
manufacturing steps from which it originates.
Secondary post-consumer raw material: Material resulting from products ending at least one lifetime.
Please note that this includes waste materials originating from intermediate manufacturing steps in thevalue chain using secondary raw materials (pre- and or post- consumer raw materials) as input. This also
includes material recovered from waste generated by industrial facilities in their role as end-users of afinished product. In all cases the material should not be suitable for consumption in the intermediate
manufacturing steps from which it originates. This also includes material recovered from waste generated
by industrial facilities in their role as end-users of a finished product.

Metal emissions
Metal emissions to water (load): the total amount of metals emitted after treatment to surface waterfrom effluent(s) expressed in kg/year. If sites make use of an external wastewater treatment plant, theefficiency of that treatment is considered if known to the site.
Metal emissions to air (load): the total amount of metals emitted to air, after emissions abatement
where applicable, in solid fraction by all point sources expressed in kg/year. For mercury and arsenic,
vapor/fume fractions are counted as well.
Metal emissions to air and water (impact): 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.
Diffuse metal emissions: the average concentration of suspended particulate matter (PM10) in air ofrelevant metals multiplied by the impact factors to air for the respective metals and normalized against
the value of 2020.

Registration, Evaluation and Authorisation of CHemicals (REACH)
European chemicals policy to manage the risks from chemicals and provide substance safety information.

Raw materials
Primary raw material: Material which has never before been subjected to use or processed into any
form of end-use product (or part thereof) other than that required for its manufacture. In the absenceof information from the supplier on the nature of the raw materials supplied, these raw materials are
considered as primary. The collected data are expressed in terms of total tonnage of incoming material.
Secondary raw material: Material which has been used and/or processed before and can be reusedor processed again into any form of end-use product (or part thereof). Includes both pre- and post­
consumer materials.
Secondary pre-consumer raw material: Material resulting from the industrial processes in the value
chain before that material has been processed into a product. Please note that this includes wastematerials originating from intermediate manufacturing steps in the value chain using primary raw

Return on capital employed (ROCE)
Adjusted EBIT / average capital employed.

Revenues (excluding metal)
All revenue elements - value of purchased metals.

Retention rate
100%-voluntary leavers rate

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Risk assessment

Task Force on Climate-related Financial Disclosure (TCFD)

The evaluation of the risks of existing substances to man, including workers and consumers, and to theenvironment, in order to ensure better management of those risks.

Recommendations launched in 2017 to improve and increase reporting of climate-related financial
information. CDP’s disclosure platform provides the mechanism for reporting in line with the
TCFD recommendations.

Science-Based Targets Initiative (SBTi)
Organization that validates greenhouse gas targets. Partnered with CDP, UN Global Compact, World
Resources Institute, World Wildlife Fund.

scope 1, 2, 3, 4 CO2e emissions
scope 1 CO2e emissions: A reporting organization’s direct GHG emissions.
scope 2 CO2e emissions: A reporting organization’s indirect GHG emissions from the generation ofpurchased electricity, heating/cooling, compresses air or steam.
scope 3 CO2e emissions: A reporting organization’s indirect emissions that occur upstream anddownstream in the value chain, including purchased goods and services, business travel, employee
commuting, waste disposal, use of sold products, transportation and distribution (up- and downstream),
investments and leased assets and franchises
scope 4 CO2e emissions: emission reductions which occur outside of a product’s lifecycle or value chain,but as a result of the use of the product. Also referred to as “avoided emissions”.

Training hours
Average number of training hours per employee, including all types of training (formal, training on thejob, E-learning, etc.) in which the company provides support, and which are relevant to the business
unit or the company. The total number of training hours is divided by the averageworkforce of fully
consolidated companies.

Temporary contract, or temporary worker
Umicore employees with a temporary contract, included in the workforce of fully consolidated companies.

Voluntary leavers
Number of employees leaving at their own will (excluding lay-offs, retirement, and end of fixed-term
contract). This number is related to the total workforce from fully consolidated companies.

Secondary (raw) materials

Waste

See Materials.

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) to thetotal waste.

Sub-contractor
A person not belonging to Umicore’s total workforce, providing services to Umicore in one of its premises
under terms specified in a contract.

Water

Sustainable Development Goals (SDG)

Water use: The use of water associated with our industrial activities in line with the definition of the termin the ISO14046 standard.
Water withdrawal: withdrawn produced water (water/moisture content of incoming raw materials andliquid solutions), groundwater withdrawn for remediation purposes and cooling water withdrawn fromand returned to surface water.

The 17 Sustainable Development Goals adopted by the United Nations on September 25 2015 build on theMillennium Development Goals and aim at ending poverty, protecting the planet, and ensuring prosperity
for all as part of a new UN sustainable development agenda. Each goal has specific targets to be achievedby 2030.

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 a dormant

Umicore Strategy Performance Leadership Statements About Glossary Backcovercontract, employees on long-term illness and sub-contracted employees. This applies to all hourly
paid, monthly paid, managers and interns on Umicore’s payroll at the end of the reported semester
including part-time and temporary employees but excludes employees with a dormant contract (careerinterruption, parental leave, etc.), employees on long-term illness (country specific length of continuous
absence) and early retirees.

Umicore Integrated Annual Report 2021

240

Umicore Integrated Annual Report 2021

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

22 JUNE 2022
Capital Markets Day

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

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

STOCK
Euronext Brussels

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

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

241

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

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

For enquiries and additional information please contact
Registered Office
UmicoreSociété anonyme - Naamloze venootschap
Rue du Marais 31 Broekstraat
B-1000 Brussels
Belgium
Ondernemingsnummer: 0401574852
BTW - nummer: BE 0401 574 852+32 2 227 71 11