Advanced Materials in Europe A case for action Industrial Technologies 2012 June 20th Aarhus (DK) Dr Marc Van Sande Executive Vice-President Energy Materials Umicore

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

Umicore’s business approach We transform metals into hi-tech materials We use application know-how to create tailor-made solutions in close collaboration with our customers We close the loop and secure supply by recycling production scrap and end-of-life materials We aim to minimize our environmental impact and be the best employer and neighbour Application know-how Chemistry Material science Metallurgy material solutions Metals Material solutions Recycling Our business philosophy is centered on the creation of solutions for a wide range of hi-tech materials, using our expertise in chemistry, material science and metallurgy. Metals have this unique characteristic that they are infinitely recyclable without losing their properties and Umicore distinguishes itself by recycling products that contain our materials, once these products reach the end of their life. Closing the materials loop is at the heart of our business and contributes to the efficient use of scarce natural resources. 3

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 Electrification of the automobile We are the largest recycler of precious metals; we are able to recycle more than 20 different metals Resource scarcity We provide catalysts for 1 out of 3 cars in the world as well as for trucks & non-road vehicles More stringent emission control We supply key innovative materials for high-efficiency solar cells and other photovoltaic applications Renewable energy

Umicore in figures Financials Geographic spread of sales (2011) This opening slide illustrates the importance that R&D has reached within Umicore. Deze beginslide toont het belang dat R&D bereikt heeft binnen Umicore.

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

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 … Light Emitting Diodes (LED) Fuel Cells Gallium Indium Germanium Silver … Platinum Iridium Cobalt …

Criticality for EU The 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

Resource efficiency needed to deal with scarcity of technology metals Application know-how Demand is growing Chemistry Material science Metallurgy material solutions Supply is limited Metals Material solutions Recycling Demand is growing Global growth Demand for technology metals well above GDP Limited substitution possibilities Supply is limited Worldwide primary supply (from mining) is limited Mining possibilities limited by the coupling of technology metals with base metals Mining creates geopolitical dependence Short term supply often impacted by speculation on commodities Recycling is essential

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

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

EU needs to reinforce and develop its assets in order to compete EU has considerable assets in global advanced materials competition EU features leading research & technology organizations and industrial leadership in several application sectors EU is still strong in global race for knowledge creation and patents (2nd) The disconnect between 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

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 on sustainability of EU strategic sectors Crossing “valley of death” in EU requires 3 pillars Technological facilities to transform science into proprietary competitive technologies Pilots lines to demonstrate relevance of technologies into delivering competitive products Competitive manufacturing to create and maintain globally competitive industries

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 innovation activities (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 policies to ensure ownership and exploitation of IP Build, strengthen and retain skills on “advanced materials” at EU level

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 countries came together to found EMIRI association EMIRI (Energy Materials Industrial Research Initiative) will provide guidance, focus, direction and commitment to achieve commercially successful development of value added energy materials for energy applications EMIRI will enable actors from public & private sectors to work more effectively at 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

Take-aways Advanced materials are strategic to Europe to address competitiveness & societal challenges But EU is facing growing global competition in that technology field And needs to reinforce and develop its assets in order to compete Competitiveness of advanced materials will benefit from more integration at EU level and strong EU attention to various areas to bridge the “valley of death” Advanced materials industry is moving and proactive with the proposal to EU of a PPP on advanced energy materials