Introduction to Umicore group

1. Advanced Materials in EuropeA case for actionIndustrial Technologies 2012June 20th Aarhus (DK)Dr Marc Van SandeExecutive Vice-President Energy MaterialsUmicore

2. Introduction to Umicore group • We are a global materials technology company • Our mission is to make “materials for a better life” • The majority of our growth comes from clean technologies, i.e. technologies specifically designed to optimize the use of natural resources and reduce environmental impact • We are listed on NYSE / Euronext Brussels with a market capitalization of some € 4.5 billion

3. Umicore’s business approach We transform metals into hi-tech materials We use application know-how to create tailor-made solutionsin close collaboration with our customers We close the loop and secure supplyby recycling production scrap and end-of-life materials We aim to minimize our environmental impactand be the best employer and neighbour Application know-how materialsolutions ChemistryMaterial scienceMetallurgy Materialsolutions Metals Recycling

4. Umicore’s development fits with megatrends We are a leading producer of key materials for rechargeable batteries for laptops, mobile phones as well as electrified vehicles Electrificationof the automobile We are the largest recycler of precious metals; we are able to recycle more than 20 different metals Resourcescarcity We provide catalysts for 1 out of 3 cars in the world as well as for trucks & non-road vehicles More stringentemission control We supply key innovative materials for high-efficiency solar cells and other photovoltaic applications Renewableenergy

5. Umicore in figures • Financials • Geographic spread of sales (2011)

6. 80% of Umicore’s R&D (*) investment is in the clean tech domain Innovative technologies specifically designed to optimize the use of natural resources and to reduce environmental impact (*) 7 % of revenues

7. Efficient production and use of energy will further boost demand for technology metals Photovoltaic (solar cells) Electric vehicles & batteries Germanium Gallium Selenium Indium Tellurium Silver … Lithium Cobalt Nickel Rare Earth Elements Copper … Fuel Cells Light Emitting Diodes (LED) Gallium Indium Germanium Silver … Platinum Iridium Cobalt …

8. Criticality for EUThe EU Raw Materials Initiative Materials for which a threat to supply could involve harm to the national economy, and for which the risk is higher than for most other raw materials in the coming 10 years Critical materials (EU):Be, Co, Ga, Ge, In, Mg, Nb, PGM, REE, Sb, Ta, W, fluorspar, graphite Source: Critical Raw Materials for the EU – European Commission Enterprise & Industry, July 2010

9. Resource efficiency needed to deal with scarcity of technology metals Application know-how Demand is growing materialsolutions ChemistryMaterial scienceMetallurgy Materialsolutions Metals Supply is limited Recycling Recycling is essential

10. Advanced materials are strategic to Europe to address competitiveness & societal challenges • Advanced materials is a key enabling technology (KET) for EU • Contributing to economic growth & employment in EU through innovative products • Strengthening & dynamizing existing European value chains(often at their basis) • Creating new jobs and competitiveness by enabling follow-through applications • Enabling development of products & solutions to address societal challenges

11. EU is facing growing global competition in field of advanced materials • Difficult to matchinvestment project incentives available in competing regions • Other regions strongly focuson strategic manufacturing capacities to fight off competition • EU’s competitorsfocus on turning basic science into advanced products& processes • EU does the basic research, others commercialize • Asia is movingup traditionally EU value chains due to fast catch up in innovation • EU faces challenges in access to critical raw materials (needs for recycling & substitution)

12. EU needs to reinforce and develop its assets in order to compete • EU has considerable assetsin global advanced materials competition • EU features leading research& technology organizations and industrial leadershipin several application sectors • EU is still strongin global race for knowledge creation and patents (2nd) • The disconnectbetween R&D and innovation (manufacturing and commercialization) is well present Global patent and manufacturing shares for Li-ion batteries EU must rebalance resources & objectives to retain critical capability & capacity EU must reinforce & rapidly develop strategic sectors in order to compete

13. Competitiveness of advanced materials will benefit from more integration at EU level • “Valley of death” between knowledge generation and commercialization • Leading to relocation of manufacturing and R&D, disruption of value chains, impact onsustainability of EU strategic sectors Crossing “valley of death” in EU requires 3 pillars • Technological facilitiesto transform science into proprietary competitive technologies • Pilots linesto demonstrate relevance of technologies into delivering competitive products • Competitive manufacturingto create and maintain globally competitive industries

14. Bridging the “valley of death” will require EU strong attention to various areas • Make “advanced materials”one of EU technological priorities in Horizon 2020 • Build 3 strong pillars of the innovation chain(public & private investments) • Rebalance RDI funding towards innovationactivities (technological research & product development incl. pilot lines, demonstrators) • Define & implement a strategic industry-driven& coordinated approach at EU level • Combine funding mechanisms(Industry, EU, MS) & establish appropriate rules to implement funding programmes • Develop globally competitive IP policiesto ensure ownership and exploitation of IP • Build, strengthen and retain skills on “advanced materials”at EU level

15. For Horizon 2020, a PPP on advanced energy materials is being proposed to EU • In order to implement the SET plan(Strategic Energy Technology) materials roadmap,30 organizations (15 leading materials companies) from 10 different EU countriescame together to found EMIRI association • EMIRI (Energy Materials Industrial Research Initiative) will provide guidance, focus, direction and commitment to achieve commercially successful developmentof value added energy materialsfor energy applications • EMIRI will enable actorsfrom public & private sectors to work more effectivelyat EU scale with resources beyond critical mass to reach excellence in research & innovation on energy materials VAM: Value added materials EERA: European Energy Research Alliance

16. Take-aways • Advanced materials are strategic to Europeto address competitiveness & societal challenges • But EU is facing growing global competition in that technologyfield • And needs to reinforceand develop its assets in order to compete • Competitiveness of advanced materials will benefit from more integration at EU level and strong EU attention tovarious areas to bridge the “valley of death” • Advanced materials industry is moving and proactivewith the proposal to EU of a PPP on advanced energy materials