10 February 2017

Regulated Information

Full year results 2016

Highlights

Revenues and recurring EBIT from continued operations were up 3% and 7% respectively. Revenues for the Group including discontinued operations were up 1% and recurring EBIT increased by 6%. Strong growth in Automotive Catalysts and Rechargeable Battery Materials more than offset the impact of lower metal prices on the various recycling activities.

  • Revenues* of € 2.7 billion (+1%)
  • Recurring EBITDA* of € 527 million (+4%)
  • Recurring EBIT* of € 351 million (+6%)
  • ROCE* of 14.6% (versus 13.7% in 2015)
  • Recurring net profit (Group share)* of € 233 million (-5%)
  • Recurring EPS* of € 2.14 (-6%)
  • Net debt* at € 296 million corresponding to a gearing ratio of 13.8%

* including discontinued operations

Capital expenditures amounted to € 287 million, most of which relates to growth investments in clean mobility and recycling. Expansion works to triple capacity for cathode materials in China and Korea by the end of 2018 have started. In Automotive Catalysts the new production plant in Thailand has been commissioned and production is ramping up. Investments in auxiliary equipment have been completed in Hoboken as part of the expansion.

Umicore’s growth investments include projects aimed at further enhancing the company’s environmental performance. In particular, a series of projects was initiated in the Hoboken recycling facility to further reduce metal emissions. This will focus in first instance on a revamping of the lead refinery in order to both curtail the risk of emissions and further improve occupational health at the plant.

Non recurring elements amounted to a charge of € 110 million to EBIT, of which € 69 million corresponds to the fine imposed by the French Competition Authority in relation to Umicore’s Building Products activities in France. The balance reflects mainly the closure costs for two production sites in Europe and China.

The Board of Directors will propose an increase of the gross annual dividend to € 1.30 per share at the Annual General Meeting on 25 April 2017 of which € 0.60 was already paid out as an interim dividend in August 2016.

Outlook

Umicore is well on track to reach its Horizon 2020 objectives.

Umicore’s clean mobility activities are expected to deliver solid growth in 2017. Strong demand for Umicore’s cathode materials for automotive applications should drive volumes in 2017 with volume growth expected to be more pronounced in the second half of the year when new capacity will gradually come on stream. Although no major new emission norms will be introduced in 2017, demand for automotive catalysts is also set to grow.

In the recycling activities, the ramp up of capacity in the Hoboken plant should lead to higher processed volumes compared to 2016. As anticipated, the incremental volumes are likely to be somewhat less beneficial in terms of margins.

 

Note: All comparisons are made with 2015, unless mentioned otherwise. In accordance with IFRS 5 no depreciation charges were recognized for the discontinued operations as from the second half of 2015. All Group KPIs include the discontinued operations, unless mentioned otherwise. Zinc Chemicals contributed for 10 months in the KPIs of the Discontinued Operations, unless mentioned otherwise.


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Tag: Corporate