1. 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

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 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

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
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

5. 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.

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

8. 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

9. 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

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 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)

12. 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

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 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

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 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

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, 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

16. 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